Alternative Energy: the Time for This Investment has Not Yet Arrived
September 15, 2006 -
Although you hear a lot about alternative energy being a good investment today, I think that it’s still a lot more hype than reality. Yes I’ve heard the arguments for alternative energy investments such as high oil prices now make the development of alternative energy sources more appealing on a cost-benefit scale. And I know that major oil companies are pumping billions of dollars into developing alternative energy. Still, considering that Exxon declared over $9 billion in profits, not revenues, in just one quarter in 2006, several billion earmarked for alternative energy development is not a lot.
And while I’m also aware that companies like Vesta Wind Systems has jumped by 40% in the last six to nine months, I still think that they are more of a trading strategy rather than investment strategy for the time being. As you know we always discuss investing here, not trading, meaning that we wish to hold almost all of our investments for at least six months or longer, not just a couple of weeks or months. Although alternative energy is real, and it does work there are many reasons to be skeptical before jumping on board.
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