In investing, it’s easy to get carried away with chasing the latest trends and the newest companies. I’ve found another (and often more lucrative) way to go about finding the next big stock investment. #-ad_banner-#I call this method “the view from 50,000 feet.” In it, I mentally take a huge step backward and look at the economy as though I’ve never seen it before. This exercise enables me to see the big picture from the top down. My primary question: What themes have been consistent for more than a century? After the obvious — food, water, shelter —… Read More
In investing, it’s easy to get carried away with chasing the latest trends and the newest companies. I’ve found another (and often more lucrative) way to go about finding the next big stock investment. #-ad_banner-#I call this method “the view from 50,000 feet.” In it, I mentally take a huge step backward and look at the economy as though I’ve never seen it before. This exercise enables me to see the big picture from the top down. My primary question: What themes have been consistent for more than a century? After the obvious — food, water, shelter — what other overriding theme has been at the forefront of economic growth? The answer is energy — electrical energy, to be exact. Without electricity, the modern world as we know it would not exist. More importantly, the use of electricity is becoming more prevalent as the world grows more technological. (I know this is very obvious, but it’s easy to overlook when it comes to investing.) Continuing to look down from 50,000 feet, I asked: What is the source of the electricity? Surely there must be great investment opportunities there. A large part of the answer is coal. Coal generates… Read More