Investment Areas of Interest

April 21st, 2008

Over the next several months I want to start writing a lot more quality information about investing and investments.  I haven’t been writing very much lately, and sometimes when I do the content isn’t always very good.  So to get myself more focused, I thought I should write down what it is I intend to do so I don’t forget.

I want to start researching stocks.  Here are some interesting areas I want to look into.

• Solar Power - It’s the energy of the future.  It’s where our planet gets all of its energy.  Eventually it will overtake oil.  Maybe not in my lifetime, but it will happen. 
• Wind Power - This is another alternative energy play.  I don’t think wind will be the ultimate energy source, but I think its use will be increased worldwide and there is money to be made.
• Battery Technology- Let’s face it, current battery technology is ancient.  We need a new battery that will enable us to use electric vehicles and store energy more efficiently.  Maybe nanocapacitators or ultracapacitators will be our answer?
• Oil - It’s the energy that the world economies current utilize.  There is plenty of money to be made.
• Real Estate - Who doesn’t like a good REIT with those nice handsome dividends?  Over the long term these can do quite well. 
• Gold - I still think gold is going to go up because I hate fiat currencies and the diminishing buying power.  Bad reasoning, but that’s just the way I feel.  Even if gold doesn’t move up, junior explorers can still make money if a big discovery is found.
• Silver - Same as gold reasoning above.
• Iron - This element is widely used to produce steel.  Last time I checked, every building and car uses it and with a growing world population and industrialization of the third world, look for demand to increase.
• Technology & Internet - I’m always on the lookout for a good investment in this arena and the industry is only going to grow.
• Timber - Why timber? Lots of timber companies have a TON of land and with such bad prices right now, the industry is beat up and perhaps a bargain can be found. 
• Trains- Why a train company? They also own a ton of real estate, they can be profitable and they compete fairly well.  Also, every-time I have to wait 20 minutes for a train to roll on by as it wastes my time, I want to at least think I’m getting paid for my waisted time.  (I need to lie to myself to make the wait seem more pleasant.)
• India & Brazil - I want to find a few international companies that are based out of these two countries.  Why?  They both have large populations, they are democratic and experiencing high growth and with all the other investors focusing on China, these two are being forgotten.
• Health Care / Nutraceuticals / Supplements - It might be a good time to find a company in this industry as well.  It’s only going to grow as the boomer’s get older and sicker.

I prefer micro/small/mid cap companies, but I’m not against investing in large caps.  I want to find companies that have revenues, profits, growth and value.  I want it all, but I’ll settle for less (like no revenue companies in the junior exploration area) if I think the investment has some good upside potential.  I just want to position myself to do well for the big trends over the coming decades. 

Although I will do research on many companies, it’s important for me to note that personally I do NOT like to be over-diversified as it makes it IMPOSSIBLE to beat the market averages.  If you own too many stocks then you may be statistically tied to the market which makes it extremely difficult to beat it.  Personalyl I don’t think I could EVER own more than 20 companies (unless I was a billionaire and wanted to diversify myself to protect my wealth).  I’ve always said, diversification is a wealth protectionist strategy not a wealth building strategy.  Most billionaires today made their fortune off a single investment.  Think about it.

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