Water - how to invest?

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Nigel Black
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Water - how to invest?

Hi there,

One of the most precious (and scarce) resources we have on the planet is fresh water.  The earth's population has doubled since 1950 (I believe) and we have tripled our usage of fresh water.  And with developing nations needing more fresh water, I believe it will become harder to find (and more expensive to use).

Only 1-2% of the world's water is fresh water and about 5-10% is accessible.  That means will need to find new water sources and perhaps, find ways to recycle more water that we use.  I believe companies that can find ways to do this will do well financially.  I have been looking at water ETFs and I am left scratching my head ... CWW.TO, PIO, PHO are the main ones I am looking at. 

Is anyone here investing in Water ETFs ... or even have a "pure play" water stock?

Thanks for any information that you can share.

Edited by admin on 11/08/2014 - 06:27
Bay
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Watching Water

Nigel,

I do share you sentiments regarding water. I am much more versed in PM's but I am watching water but haven't gathered enough information to really post anything significant at this time. Just wanted to let you know you are not alone in your thoughts on this. If I gather more that is relevant I will post back.

Nigel Black
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Hi Chin Music, Thank you for

Hi Chin Music,

Thank you for responding to this.  There is a lot of nonsense going on with our banks, governments, etc. - which of course, cannot be ignored.  But I wonder if people truly understand how important water is to us and life - and that we are running out of it.

I recently went to South Africa and several locals mentioned to me that they believe southern Africa will run out of fresh water in the next few years.  Today, we use a lot of fresh water in our industrial processes (oil from tar sands, agriculture, the manufacture of most goods, etc.) and as a result, humans will need to find ways to produce even more fresh water as demand will eventually outstrip supply.

I really do think those companies that can assist in efficiently (and cost effectively) producing fresh water will do well.  I just don't know who they are.  But, I continue to look.  If I find anything, I will most certainly update this thread.

Jason King
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Willem Buiter on water

Nige

Do have a read of this

http://ftalphaville.ft.com/blog/2011/07/22/631576/why-water-is-energy-not-an-asset-class/

If you are in them UK I fancy this ETF to do the business

LSE:LWAU

Nigel Black
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Thanks Jason

Thanks for that post, Jason.  I did a google search and found the following NY Times article:

http://www.nytimes.com/2008/04/16/business/worldbusiness/16iht-rtrdeal17.2.12044680.html

It dates back to 2009, but one of the companies mentioned, Energy Recovery Inc. (ERII on the Nasdaq), seems to be the leader in water desalination systems:

http://www.energyrecovery.com/

Companies like GE and ITT are also in the water business (through acquisition of smaller companies), but the revenue derived from their water business is miniscule compared to the overall business revenue.

154_silver
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"investing" in water

The ethics of selling something that is necessary for all life on this planet - water -  is a subject I've been very interested in, an interest heightened after reading "Blue Gold" by Maude Barlow a few years back - well recommended, by the way.

You may have read of T. Boone Pickens selling "water rights" to an aquifer for $103 million:

http://newsok.com/t.-boone-pickens-sells-water-rights-to-texas-water-supplier-for-103-million/article/3579874

and he certainly believes in profiting on what is an essential to sustain life, saying:

"There are people who will buy the water when they need it. And the people who have the water want to sell it. That's the blood, guts, and feathers of the thing," he says.

I wonder at the reasoning behind "owning" a portion of an aquifer which extends under other legal properties, and should be preserved as a "commons" right - be interesting to hear anyone argue otherwise.

But it appears that water is being set up to make the next big "killing" (literally) for those who value monies more than humanity.  Here's news from the UN:

The UN Is Aiding a Corporate Takeover of Drinking Water

Early last month, pharmaceutical titan Merck became the latest multinational to pledge allegiance to the CEO Water Mandate, the United Nations' public-private initiative "designed to assist companies in the development, implementation and disclosure of water sustainability policies and practices."

http://www.alternet.org/water/151367/the_un_is_aiding_a_corporate_takeover_of_drinking_water

And yes, those "in the loop/know" are buying up aquifers in so called "third world" nations, setting themselves up for future profits at the expense of life - plant, animal AND human - GWBush 1ook acres atop the Guarani Aquifer in Paraguay is an example.

/shakes head.

Silver bear of ...
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Guess that leaves us just

Guess that leaves us just air.

__________________

I like my honey solid and golden

154_silver
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@ Silver bear re: "just air"

. . . ahhh, don't get me started, sigh!

Most don't want to "go there" - but weather modification is not only legal, but has been a growing practice in the US, and involves aerosoling the skies with various "mixtures" that include heavy metals, toxins & nanoparticles.  The "air" we breathe is becoming more toxic every year, as the rise in asthma & respiratory illnesses attest.

I know a lot of people think this falls in the "conspiracy" corner, but seriously, look into it - maybe start here:

http://weathermodification.com/index.php

and the documentary "What In The World Are They Spraying?" is recommended - here's a link to a preview, it's available to watch online too:

There are ways to mitigate the effects, but I'll wait to see if it's a topic folk are interested in "here" first - best wishes!

Caradoc
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Best background info on water

Been a while, but still the best
:http://www.financialsense.com/contributors/james-j-puplava/blue-gold

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