For investors to benefit fully from the alternative energy revolution, they must first see it for what it is, namely, some 30 different businesses, separate yet interconnected in their goal to reduce the use of oil, coal and/or natural gas.
While wind and solar dominate the news, analysts’ research reports, and alternative energy ETFs, there are many other prospective long-term winners receiving far less attention.
Some are developing other alternative energy sources, such as geothermal, biomass and biogas, wave and tidal, and algae. Some are developing various forms of energy storage, such as flywheels, fuel cells and ultracapacitors.
Others are making a vast array of energy-saving products, from LED light bulbs to ‘stop-and-start’ motor vehicle systems. Still others are developing components for the coming era of electrified transportation other than lithium-ion batteries, for example, electric bikes and scooters and electric-vehicle recharging equipment (aka, the electric gas pump).
Other companies are involved in alternative energy as consultants and information providers, as investors in green and smart-grid developers, and as renewable energy insurance providers.
To be sure, finding technology-based, pure-play companies that are still small and undiscovered represents the biggest potential payoff. But especially if you have a low risk tolerance, multinational giants generally associated with other sectors also have the potential to pay off big, given all the money governments are throwing at green energy, energy efficiency, electrified transportation, the smart grid, carbon trading, and more.
Indeed, as much as everyone is looking for the next Cree (CREE) and First Solar (FSLR), over the long-term alternative energy’s biggest winners likely will also include Siemens (SI), General Electric (GE), Microsoft (MSFT) and Apple (AAPL).
For more on all this, investors might want to sign up for a free webinar taking place tomorrow, May 11. For more information, click here.