Here’s a great, simple… yet complex (and perhaps highly profitable investment) idea about water.
Waterfall at our farm entrance
Water is a key in all my decision making. We have tons of water at our North Carolina farm.
Canoing on our lake
Our Florida farm in in a water rich area and we live on a lake.
In the news, we see the importance of water every day. Too much water is ruining farmers in the Midwest. Too little wiped out entire California towns.
A recent Wall Street Journal article “Lowville Had Lots of Water – Then String Cheese Came to Town” shows how a change in water can create havoc.
The article says: When the Philadelphia Cream Cheese factory in Lowville New York started making string cheese, too, in the summer of 2017, it brought scores of new jobs to town.
It also boosted the facility’s water usage by hundreds of thousands of gallons on some days—eventually bringing its overall demand to more than 80% of the town’s typical daily supply. The draw sucked the municipality’s reservoir to dangerously low levels. Town officials, caught off guard, banned the village’s 3,500 residents from washing cars and watering lawns.
Water is unlike any other commodity. Seen as a natural human right, it is available when we turn on the faucet or slurp from the water fountain at the park. Behind that veneer of plenty, though, companies are waking up to a new, water-constrained future—even in places like Lowville, usually blessed with plenty of it.
A potent mix of population growth, surging industrial demand, pollution and climate change is putting relentless stress on water resources all over the world. It is also pitting companies, used to near-limitless water, against other businesses and nearby residents, who need more of it, too.
During most of the 20th century, just 14% of the global population lived in conditions of scarce water supplies—broadly defined as insufficient water to provide for human needs—according to a 2016 study by a team of water scientists published in the research journal Scientific Reports. Today, that has leapt to nearly 60% of the world’s people, a result of surging population growth and dwindling supplies of freshwater.
I invest a lot in sustainable energy and water so I really perked up when our friend Thomas Fischer at ENR Asset Management sent me this note.
Hi Gary, I know you have written about water companies before so thought you might find this Danish company interesting Waturu Holding A/S (symbol WATURU).
It had its IPO a month ago at DKK 6.50 ($.98 cents). Now its trading at DKK 25.00 ($3.78).
The simple idea is to heat water on demand.
That’s a great idea, but it’s not new. In most of the world on demand heating is the norm. I first used it in Hong Kong 50 years ago and always had it when living in England. We even have a on demand water system here at our Florida farm. Why have a water heater? They always seemed wasteful to me.
Waturu takes the simplicity a step further and delivers heat at the water’s delivery point!
That’s even better, so simple, so logical and really makes sense as it eliminates a lot of plumbing and heat loss through a long pipe delivery system.
Yet that’s not anything really new either.
Here’s where the Waturu system gets complex.
Waturu does much more than just heat water at its source.
Here’s some excerpts about Waturu Holding A/S (1) (bolds and underlines are mine): A Greentech company that offers an innovative water technology. The technology, instantly delivers hot water in a sustainable and responsible manner.
The water and energy consumption is lowered by respectively 75% and 94% compared to a district heating solution with circulation.
With the savings, a significant CO2 reduction follows. Integration of the company’s technology into external products and the treatment of process and waste water are also business areas of focus. The company initiates automated production in Denmark in 2019, has established subsidiaries and has a patent and patent applications in process.
Waturu’s technology transfers energy directly into the water in the form of an efficient, electric, tank-less water heater. The technology promises to ensure considerable savings on energy and water, immediate heating, and water disinfection.
The bigger deal is that the energy transfer principle in WATURU has a disinfectant effect on the water. The disinfectant capacity is documented by the Danish Technological Institute. which creates opportunity in both the health and agricultural sector and in installations used by children and elderly people.
Here are two examples already in play.
In the health sector, Waturu has developed a new solution that, without the use of chemistry, can combat bacteria such as Legionella and p. Aeruginosa by utilizing the water’s conductivity to briefly expose the bacteria to current. Bacteria are a continuous challenge in all domestic water installations and especially in properties such as hospitals and nursing homes, where the users have impaired immune systems or open wounds. Legionella is extremely important to fight, as the bacterium can cause legionary disease, which is a pneumonia that can be fatal.
In the agricultural sector the Waturu is being tested to eliminate the risk of mortality from fish as a result of external bacteria or algae. Tons of fish in fish farms die as a result of the influence of algae or bacteria of various kinds.
The usual solution has been to medicate the fish with antibiotics. This reduces the healthiness of the food and still there is an increase in fish mortality as resistance to current medications grow.
Waturu shares began trading on Nasdaq First North Denmark (3), an alternative stock exchange for smaller companies in Europe, in May.
For more details about Waturu and Nasdaq First North Denmark contact Thomas Fischer at firstname.lastname@example.org
I have worked with Thomas for almost 20 years and he pointed out another important factor regarding Waturu and investing.
He wrote: I had an order for 10,000 shares at the IPO (DKK 6/USD 1) but I was cut down to 800 shares due to the huge oversubscription. As of today the price is up 315% – but with such a small holding I feel more frustrated about the shares I wasn’t allocated than the joy over the big percentage gain! The brain works in mysterious ways :=}
The brain does work in mysterious ways when it comes to investing which is why it’s important to be cautious when looking at new ventures such as Waturu.
That’s why the bulk of my equity portfolio is in good value country ETFs as described below.
Investing Beyond the BoomWarren Buffet once warned against the Cinderella effect.
He said “Don’t be fooled by that Cinderella feeling you get from great returns. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know the party must end but nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands.”
Cinderella may have lost a shoe when she fled the party to meet a midnight curfew. We can lose much more when we rush from a crashing stock market.
Most investors face emotional dangers that build in rising markets.
Almost everyone feels good.
But the clock of economic reckoning is ticking.
No wants to see it. Nothing rises forever and especially… not everything at the same time.
Yet no one wants to leave the party until the end.
But many edge closer to the door.
When the clock chimes there could be a stampede even though leaving in a hurry may be the worst way to go.
Here are seven steps that can help avoid this risk.
- Choose investments based on markets instead of shares.
- Diversify based on value.
- Rely on financial information rather than economic news.
- Keep investing simple.
- Keep investing costs low.
- Trade as little as possible.
- Make the decision process during panics automatic.
One strategy is to invest in country ETFs that easily provide diversified, risk-controlled investments in countries with stock markets of good value. These ETFs provide an easy, simple and effective approach to zeroing in on value. Little management and less guesswork is required. The expense ratios for most ETFs are lower than those of the average mutual funds. Plus a single country ETF provides diversification equal to investing in dozens, even hundreds of shares.
A minimum of knowledge, time, management or guesswork are required.
The importance of…
Keeping investing simple is one of the most valuable, but least looked at, ways to avoid disaster. Simple and easy investing saves time. How much is your time worth? Simple investing costs less and avoids fast decisions during stressful times in complex situations where we are most likely to get it wrong.
Fear, regret and greed are an investor’s chief problem. Human nature causes investors to sell winners too soon, and hold losers too long.
Easy to use, low cost, mathematically based habits and routines help protect against negative emotions and impulse investing.
Take control of your investing. Make decisions based on data and discipline, not gut feelings. The Purposeful investing Course (Pi) teaches math based, low cost ways to diversify in good value markets and in ETFs that cover these markets. This course is based on my 50 years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.
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Pi’s mission is to make it easy for anyone to have a strategy and tactics that continually maintain safety and turn market turmoil into extra profit.
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#1: Current book to price
#2: Cash flow to price
#3: Earnings to price
#4: Average dividend yield
#5: Return on equity
#6: Cash flow return.
#7: Market history
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Don’t give up profit to gain ease and safety!
Regardless of economic news, these markets represent good value and have been chosen based on four pillars of valuation.
- Absolute Valuation
- Relative Valuation
- Current versus Historic Valuation
- Current Relative versus Relative Historic Valuation
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Included in the basic training is an additional 120 page PDF value analysis of 46 stock markets (23 developed markets and 23 emerging stock markets). This analysis looks at the price to book, price to earnings, average yield and much more.
You also receive two special reports.
In the 1980s, a remarkable set of two economic circumstances helped anyone who spotted them become remarkably rich. Some of my readers made enough to retire. Others picked up 50% currency gains. Then the cycle ended. Warren Buffett explained the importance of this ending in a 1999 Fortune magazine interview. He said: Let me summarize what I’ve been saying about the stock market: I think it’s very hard to come up with a persuasive case that equities will over the next 17 years perform anything like—anything like—they’ve performed in the past 17!
I did well then, but always thought, “I should have invested more!” Now those circumstances have come together and I am investing in them again.
The circumstances that created fortunes 30 years ago were an overvalued US market (compared to global markets) and an overvalued US dollar. The two conditions are in place again!
30 years ago, the US dollar rose along with Wall Street. Profits came quickly over three years. Then the dollar dropped like a stone, by 51% in just two years. A repeat of this pattern is growing and could create up to 50% extra profit if we start using strong dollars to accumulate good value stock market ETFs in other currencies.
This is the most exciting opportunity I have seen since we started sending our reports on international investing ideas more than three decades ago. The trends are so clear that I have created a short, but powerful report “Three Currency Patterns for 50% Profits or More.” This report shows how to earn an extra 50% from currency shifts with even small investments. I kept the report short and simple, but included links to 153 pages of Good Value Stock Market research and Asset Allocation Analysis.
The report shows 20 good value investments and a really powerful tactic that shows the most effective and least expensive way to accumulate these bargains in large or even very small amounts (less than $5,000). There is extra profit potential of at least 50% so the report is worth a lot.
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With investors watching global stock markets bounce up and down, many missed two really important profit generating events over the last two years. The price of silver dipped below $14 an ounce as did shares of the iShares Silver ETF (SLV). The second event is that the silver gold ratio hit 80, compared to a ratio of 230 only two years before.
In September 2015, I prepared a special report “Silver Dip 2015” about a silver speculation, leveraged with a British pound loan, that could increase the returns in a safe portfolio by as much as eight times. The tactics described in that report generated 62.48% profit in just nine months.
I have updated this report and added how to use the Silver Dip Strategy with platinum. The “Silver Dip” report shares the latest in a series of long term lessons gained through 40 years of speculating and investing in precious metals. I released the 2015 report, when the gold silver ratio slipped to 80. The ratio has corrected and that profit has been taken and now a new precious metals dip has emerged.
I have prepared a new special report “Silver Dip” about a leveraged speculation that can increase the returns in a safe portfolio by as much as eight times.
You also learn from the Value Investing Seminar, our premier course, that we have been conducting for over 30 years. Tens of thousands of delegates have paid up to $999 to attend. Now you can join the seminar online FREE in this special offer.
This three day course is available in sessions that are 10 to 20 minutes long for easy, convenient learning. You can listen to each session any time and as often as you desire.
The sooner you hear what I have to say about current markets, the better you’ll be able to cash in on perhaps the best investing opportunity since 1982.
Tens of thousands have paid up to $999 to attend.
This year I celebrated my 52nd anniversary of writing about global investing. Our reports and seminars have helped readers have better lives, with less stress yet make fortunes during up and down markets for decades. This information is invaluable to investors large and small because even small amounts can easily be invested in the good value shares we cover in our seminar.
Stock and currency markets are cyclical. These cycles create extra profit for value investors who invest when everyone else has the markets wrong. One special seminar session looks at how to spot value from cycles. Stocks rise from the cycle of war, productivity and demographics. Cycles create recurring profits. Economies and stock markets cycle up and down around every 15 to 20 years as shown in this graph.
The effect of war cycles on the US Stock Market since 1906.
Bull and bear cycles are based on cycles of human interaction, war, technology and productivity. Economic downturns can create war.
The chart above shows the war – stock market cycle. Military struggles (like the Civil War, WWI, WWII and the Cold War: WW III) super charge inventiveness that creates new forms of productivity…the steam engine, the internal combustion engine, production line processes, jet engines, TV, farming techniques, plastics, telephone, computer and lastly during the Cold War, the internet. The military technology shifts to domestic use. A boom is created that leads to excess. Excess leads to correction. Correction creates an economic downturn and again to war.
Details in the online seminar include:
* How to easily buy global currencies, shares and bonds.
* Trading down and the benefits of investing in real estate in Small Town USA. We will share why this breakout value is special and why we have been recommending good value real estate in this area since 2009.
* What’s up with gold and silver? One session looks at my current position on gold and silver and asset protection. We review the state of the precious metal markets and potential problems ahead for US dollars. Learn how low interest rates eliminate opportunity costs of diversification in precious metals and foreign currencies.
* How to improve safety and increase profit with leverage and staying power. The seminar reveals Warren Buffett’s value investing strategy from research published at Yale University’s website. This research shows that the stocks Buffet chooses are safe (with low beta and low volatility), cheap (value stocks with low price-to-book ratios), and high quality (stocks of companies that are profitable, stable, growing, and with high payout ratios). His big, extra profits come from leverage and staying power. At times Buffet’s portfolio, as all value portfolios, has fallen, but he has been willing and able to wait long periods for the value to reveal itself and prices to recover.
Use time not timing.
Time is your friend when you use a good value strategy. The longer you can hold onto a well balanced good value portfolio, the better the odds of outstanding success.
A 45 year portfolio study shows that holding a diversified good value portfolio (based on a good value strategy) for 13 month’s time, increases the probability of out performance to 70%. However those who can hold the portfolio for five years gain a 88% probability of beating the bellwether in the market and after ten years the probability increases to 97.5%.
Learn how much leverage to use. Leverage is like medicine, the key is dose. The best ratio is normally 1.6 to 1. We’ll sum up the strategy; how to leverage cheap, safe, quality stocks and for what period of time based on the times and each individual’s circumstances.
Learn to plan in a way so you never run out of money. The seminar also has a session on the importance of having and sticking to a plan. See how success is dependent on conviction, wherewithal, and skill to operate with leverage and significant risk. Learn a three point strategy based on my 50 years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.
The online seminar also reveals the results of a $80,000 share purchase cost test that found the least expensive way to invest in good value. The keys to this portfolio are good value, low cost, minimal fuss and bother. Plus a great savings of time. Trading is minimal, usually not more than one or two shares are bought or sold in a year. I wanted to find the very least expensive way to create and hold this portfolio so I performed this test.
I have good news about the cost of the seminar as well. For almost three decades the seminar fee has been $799 for one or $999 for a couple. Tens of thousands paid this price, but online the seminar is $297.
In this special offer, you can get this online seminar FREE when you subscribe to our Personal investing Course.
Save $468.90 If You Act Now
Subscribe to the first year of The Personal investing Course (Pi). The annual fee is $299, but to introduce you to this online, course that is based on real time investing, I am knocking $102 off the subscription. Plus you receive FREE the $29.95 report “Three Currency Patterns for 50% Profits or More”, the $39.95 report “Silver Dip” and our latest $297 online seminar for a total savings of $468.90.
Enroll in Pi. Get the basic training, the 46 market value report, access to all the updates of the past two years, the two reports and the Value Investing Seminar right away.
#1: I guarantee you’ll learn ideas about investing that are unique and can reduce stress as they help you enhance your profits through slow, worry free, easy diversified investing.
If you are not totally happy, simply let me know.
#2: I guarantee you can cancel your subscription within 60 days and I’ll refund your subscription fee in full, no questions asked.
#3: You can keep the two reports and Value Investing Seminar as my thanks for trying.
You have nothing to lose except the fear. You gain the ultimate form of financial security as you reduce risk and increase profit potential.
Subscribe to Pi now, get the 130 page basic training, the 120 page 46 market value analysis, access to over 100 previous Pifolio updates, the “Silver Dip” and “Three Currency Patterns For 50% Profits or More” reports, and value investment seminar, plus begin receiving regular Pifolio updates throughout the year.
Subscribe to a Pi annual subscription for $197 and receive all the above.
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