Are Alternative energy stocks the Microsoft of the future? If you invested $1,000 in MSFT back in 1986 your investment would now be worth over $300,000. If you really believed in the Personal Computing industry you could have also invested in companies like Intel, Apple, and Cisco at bargain basement prices. That is the potential for catching the starting wave of new technology. The question still remains, are alternative energy stocks poised for such tremendous growth? I believe that in the next five to ten years, investments in companies that are building alternative energy resources will be the next Microsoft success story. Just look at the following trends:
- The dependence on foreign oil and the geo-political strife that is associated with it has put a strain on many of the oil producing nations.
- The rising cost of gasoline for your car has hit your wallet.
- The rising cost of home heating and the limited availability of new natural gas reserves has increased your home heating costs. There has also been a corresponding jump in usage of natural gas which will propel natural gas prices further.
- The increase in the number of gadgets in your life that requires electric power has increased electrical consumption.
- The importance of keeping our environment clean for future generations. Otherwise this biosphere called Earth will soon be uninhabitable.
Why are major corporations like General Motors, Toyota, Hitachi, and General Electric starting entire divisions and investing millions of dollars in alternative energy? They see an excellent investment opportunity. And so do I. There have been many stories about the new Hydrogen economy. Many of these stories and articles are profiled at this website. However, the typical investor is looking for short term gains and has a six month time horizon. Investing in these companies requires a longer term time horizon. I’m talking years, not months. But I feel your small investments in these companies now, can pay great dividends for your portfolio in the long term. The companies that can establish a foothold in this emergent market now, can be the future growth companies in the next decade. On the negative side, Wall Street doesn’t currently believe in most alternative-energy companies. Right now most of these companies are at historic lows. There is also fear that the current political administration will do everything in its power to make sure the Oil and Car companies are happy. But you need to keep in mind that when the crowd’s not paying attention, opportunities often arise. In many cases these alternative energey stocks trade for less than the cash on their balance sheets. So right now may be the best time to start owning these stocks, before everyone else does.
