investing in renewable energy
DESCRIPTION
Investing in Renewable Energy. Tom Konrad, Ph.D. [email protected] 1556 Williams St, #203 Denver, CO 80238. Outline. How much to invest? Mutual Funds, Stocks, or ETFs? How to Pick Stocks Jargon RE = Renewable Energy. Disclaimers. - PowerPoint PPT PresentationTRANSCRIPT
![Page 2: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/2.jpg)
Outline• How much to invest?• Mutual Funds, Stocks, or ETFs?• How to Pick Stocks
• Jargon– RE = Renewable Energy
![Page 3: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/3.jpg)
Disclaimers
• This talk is intended as an overview and should not be interpreted as individual investment advice or financial planning.
• Individual needs vary, so you should carefully consider if and how the information presented here applies to your situation. No advice is appropriate for everyone.
![Page 4: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/4.jpg)
Disclaimer
No investment strategy can guarantee against loss in adverse market conditions, or against Global Warming in
periods of rising atmospheric greenhouse gasses.
![Page 5: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/5.jpg)
How Much to Invest?
• These stocks are very volatile• While the long term outlook for RE is
bright, there will be short term corrections.• 5-20% of your portfolio, depending on your
risk tolerance.• Don’t go in all at once, and buy on the dips.
![Page 6: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/6.jpg)
Mutual Funds, ETFs, or Stocks?
• Mutual Funds:– Easy, but have high fees.
• ETFs (“Exchange Traded Funds”)– Easy, lower fees.
• Individual Stocks:– This is work.– lowest cost for larger investments– Can use you knowledge of RE
![Page 7: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/7.jpg)
How toInvest
Where is the moneynow?
Sponsored 401Plan: k,
403c , etc.
Cash, Bank, Mutual fund family
(Vanguard, etc.) of Full Service broker.
Still employed by plan
sponsor?
Can't invest in RE
Discount Broker:Schwab,
*, .
IRA Rollover
Buy MutualFund Buy ETF
BuyIndividualStocks
>$20K toinvest?
Underst and RE?
No
YesNoYes
Yes
No
>$100K to invest?
Individual Stocks (Mimic mutual funds or hire advisor)
Yes
No
Accounttransfer
How toInvest
Where is the moneynow?
Sponsored : 401 ,Plan k
403c , etc.
Cash, Bank, Mutual fund family
(Vanguard, etc.) of Full Service broker.
Still employed by plan
sponsor?
Can't invest in RE
Discount Broker:Schwab,
*, .
IRA Rollover
Buy MutualFund Buy ETF
BuyIndividualStocks
>$20K toinvest?
Underst and RE?
No
YesNoYes
Yes
No
>$100K to invest?
Individual Stocks (Mimic mutual funds or hire advisor)
Yes
No
Accounttransfer
Buy SmartDraw!- purchased copies print this document without a watermark .
Visit www.smartdraw.com or call 1-800-768-3729.
Decision Tree
Note: numbers are approximate.
![Page 8: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/8.jpg)
Mutual Funds
• Generally very expensive in terms of fees.• BEST: Guinness Atkinson Alternative
Energy (GAAEX)– Most diverse portfolio among mutual funds.– Includes international companies.– No load, but very high expense ratio (1.98%)
![Page 9: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/9.jpg)
How toInvest
Where is the moneynow?
Sponsored : 401 ,Plan k
403c , etc.
Cash, Bank, Mutual fund family
(Vanguard, etc.) of Full Service broker.
Still employed by plan
sponsor?
Can't invest in RE
Discount Broker:Schwab,
*, .
IRA Rollover
Buy MutualFund Buy ETF
BuyIndividualStocks
>$20K toinvest?
Underst and RE?
No
YesNoYes
Yes
No
>$100K to invest?
Individual Stocks (Mimic mutual funds or hire advisor)
Yes
No
Accounttransfer
How toInvest
Where is the moneynow?
Sponsored : 401 ,Plan k
403c , etc.
Cash, Bank, Mutual fund family
(Vanguard, etc.) of Full Service broker.
Still employed by plan
sponsor?
Can't invest in RE
Discount Broker:Schwab,
*, .
IRA Rollover
Buy MutualFund Buy ETF
BuyIndividualStocks
>$20K toinvest?
Underst and RE?
No
YesNoYes
Yes
No
>$100K to invest?
Individual Stocks (Mimic mutual funds or hire advisor)
Yes
No
Accounttransfer
Buy SmartDraw!- purchased copies print this document without a watermark .
Visit www.smartdraw.com or call 1-800-768-3729.
Decision Tree
Note: numbers are approximate.
![Page 10: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/10.jpg)
ETFsPowershares Wilderhill Clean Energy
First Trust NASDAQ Clean Edge US Liqiud
Market Vectors Global Alternative Energy
PBWExpense0.7%*
QCLNExp.0.6%*
GEXExpense0.65%*
Tracks index of US stocks
Tracks index of US stocks
Global index (world stocks)
* Includes temporary fee waiver.
![Page 11: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/11.jpg)
How toInvest
Where is the moneynow?
Sponsored : 401 ,Plan k
403c , etc.
Cash, Bank, Mutual fund family
(Vanguard, etc.) of Full Service broker.
Still employed by plan
sponsor?
Can't invest in RE
Discount Broker:Schwab,
*, .
IRA Rollover
Buy MutualFund Buy ETF
BuyIndividualStocks
>$20K toinvest?
Underst and RE?
No
YesNoYes
Yes
No
>$100K to invest?
Individual Stocks (Mimic mutual funds or hire advisor)
Yes
No
Accounttransfer
How toInvest
Where is the moneynow?
Sponsored : 401 ,Plan k
403c , etc.
Cash, Bank, Mutual fund family
(Vanguard, etc.) of Full Service broker.
Still employed by plan
sponsor?
Can't invest in RE
Discount Broker:Schwab,
*, .
IRA Rollover
Buy MutualFund Buy ETF
BuyIndividualStocks
>$20K toinvest?
Underst and RE?
No
YesNoYes
Yes
No
>$100K to invest?
Individual Stocks (Mimic mutual funds or hire advisor)
Yes
No
Accounttransfer
Buy SmartDraw!- purchased copies print this document without a watermark .
Visit www.smartdraw.com or call 1-800-768-3729.
Decision Tree
Note: numbers are approximate.
![Page 12: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/12.jpg)
Stocks: The Easy Way
• Look at the holdings of one of the ETFs or Mutual Funds, and buy the top 10 or 20.
• Expense ratio of QCLN per $10,000 per year is $60. That’s 4-6 trades per year a discount broker.
• Many brokers offer commission free trades to new accounts.
![Page 13: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/13.jpg)
ETF top holdings
• PBW– SPWR, ELON, CY,
CREE, FSLR, OM, PANL, KYO, STP, AMAT
– Source: Morningstar.com
• QCLN– LLTC, WFR, SPWR,
FSLR, HXL, AVX, BEZ, ONN, ITRI, MSCC
– Source: Morningstar.com
![Page 14: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/14.jpg)
Stocks: The Hard Way
• What do you know about RE that most people don’t?
• What did you learn at this conference?• Use what you know to pick between RE
sectors.
![Page 15: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/15.jpg)
Question 1
• Q: What is the first thing to do before you put solar panels on your roof?
• A: Improve energy efficiency• Investing: Buy energy efficiency companies
before you buy PV companies.• Some examples: JCI, AA, ELON, COMV,
ENOC, CREE, PHG
![Page 16: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/16.jpg)
Question 2
• Q:Which will you be able to buy in the next five years: A hydrogen fuel cell car, or a plug-in Hybrid?
• A:PHEV!• Investing: Dump the hydrogen fuel cell
stocks, and invest in batteries.• Some examples: ALTI, EEEI, JCI, MXWL,
VLNC
![Page 17: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/17.jpg)
Question 3
• Q: If the wind is always blowing somewhere, and there is enough sun in a square 100 miles to a side of Southwestern desert to power the whole country, what is the missing ingredient.
• A: Large scale electric transmission.• Invest: Transmission companies• Some examples: ABB, SI, ITRI, ITC, PWR
![Page 18: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/18.jpg)
Electricity Generation Technologies• Disclaimers:
– The following charts are based on my opinion from extensive reading in the field, is highly qualitative and represents a simplified picture.
– Don’t expect scientific accuracy.– Bubble size approximates the size of the
potential resource.
![Page 19: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/19.jpg)
Availability v Price
-$50$0$50$100$150$200$250
$/MWh
Disp
atch
abili
ty
Wind
Nuclear
Coal
IGCC
IGCC w/ CCS
CSP
Gas
PV
Geothermal
Biomass
Efficiency
Ocean
Old Hydro
New Hydro
![Page 20: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/20.jpg)
Emissions v Price
-$50$0$50$100$150$200$250
$/MWh
Emis
sion
s
Efficiency
PV
CSP
Wind
Nuclear
Gas
Coal
IGCC
IGCC w/ CCS
Biomass
Geothermal
Ocean
Old Hydro
New Hydro
![Page 21: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/21.jpg)
Transportation Fuels• Disclaimers:
– The following charts are based on my opinion from extensive reading in the field, is highly qualitative and represents a simplified picture.
– Don’t expect scientific accuracy.– Bubble size approximates the size (annual
output) of the potential resource.
![Page 22: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/22.jpg)
Current Transportation FuelCharacteristics
Availability
MPC
(E
cono
mic
)
GasolineDieselEthanol CornEthanol SugarcaneEthanol CellulosicBiodiesel Veg OilBiodiesel Waste OilBiodiesel AlgaeElectricity CoalElectricity RenewableHydrogen FossilHydrogen RenewableLNG
![Page 23: Investing in Renewable Energy](https://reader036.vdocuments.us/reader036/viewer/2022062810/56815d88550346895dcb93b1/html5/thumbnails/23.jpg)
Future Transport Fuels
Availability
MPC
Econ
omic
& S
ocia
l
Gasoline
DieselEthanol Corn
Ethanol Cellulosic
Ethanol SugarcaneBiodiesel Veg Oil
Biodiesel Waste Oil
Biodiesel Algae
Electricity CoalElectricity Renewable
Hydrogen Renewable
Hydrogen FossilLNG