Investors should ensure that their portfolios have investments that will offer attractive returns in the long run, based on the uncertainty around the globe. Water investments are an opportunity that every investor should consider to benefit from the demographic trends and increasing changes in the climate. Besides, water scarcity is a global issue, and water does not have a substitute. Therefore, this is an investment you can be sure to reap in the long run.
Water treatment
Water needs treatment before it gets consumed through drinking, which makes it a high-growth area. Desalination is a subsector within water stocks that are more appealing than others, which entails taking salt out of seawater. Additionally, it is the answer to water shortages even though it is a cheap investment that is increasingly becoming vital.
Water pipe and system makers
Most water pipes were installed several decades ago, and close to a third of them leak due to wears. Therefore, this is an area of water investments that investors should venture into because municipalities will in the future spend several billions of dollars to replace the faulty and aged pipes. Also, some countries are also installing new systems to deliver clean water to residents. Therefore, investors need to grab this opportunity of investing in water treatment stocks or companies involved in manufacturing pipes and installing them.
Water rights
Companies involved with water rights will prosper as the water rates increase, which could lead to a rise in their values. Investors with deep pockets can consider investing in private equity funds as they invest more of their funds into water rights. Also, most private sector water investments will in future invest larger percentages in drinking water and wastewater; thus, you can take advantage of this and invest in these companies. Studies reveal that private equity firms have already started investing in water rights.
Agriculture irrigation systems
Close to 75 percent of all freshwater is channeled into agricultural projects, such as growing wheat, corn, and other crops. Therefore, efficient water delivery is essential because several agricultural projects depend on it. Unfortunately, water availability is reducing with time. Thus, the need for newer equipment that uses water efficiently is growing. Also, agricultural irrigation revenues are set to increase by close to 21 percent over the next decade; thus, this is an opportunity for investors to invest in water.
Smart water meters
The business of manufacturing and selling smart water meters that manage and control water usage is booming. You can invest in companies that manufacture products that aid in measuring and controlling the flow of water. It is a great time to invest in water as people are trying to rethink the amount of water they use.
Leave a Reply