Oddly enough I seem to be getting quite a few requests asking, “so Christian what are you investing in?” Since the beginning of this year I have been advising my mother on her investment portfolio. Though she does give me quite a few good tips as well. She started investing again this year and her portfolio is up 95%!!!! For the past couple of years she quit, and this time she listened to me and my techniques.
So how do you get returns like this? First buy when nobody else is buying. Classic contrarian. Secondly, buy companies that have solid balance sheets, and/or solid visions for the future.
My current investment portfolio is very diverse, but my new positions are focused on two themes; Energy, and Technological Vision. And here is a list of stocks that I am either looking at, or have purchased. I will not do any further disclosure and if you follow my advice remember you need to do your own due diligence. Please note I add positions from American, and European companies.
- KTG Agar: A very interesting company that represents the industrialization of agriculture. Though they are not only interested in regular crops, but also organic. Organic foods is growing in leaps and bounds. Finally they are complimenting their business with renewable energy.
- PNE Wind AG: A company specializing in the production of renewable energies mainly wind energy. They not only create wind parks, but manage many of them themselves. Thus they get the benefit of creating windparks for clients, but have a constant revenue stream from their own windparks.
- Active Power: A company that specializes in energy storage using flywheels. Very interesting technology and ideas. Though the only thing that bothers me with this company is that they are growing, while not rebuilding their balance sheet.
- Energy Conversion: Another interesting company that specializes in the management of renewable energies. Though what bothers me with this company is that they are specializing in older rechargeable battery technologies. Though it is not completely irrational to see them adopt new battery technologies.
- Pfleiderer AG: A company that specializes in flooring materials. They are present throughout the world, and they have excellent laminat experience. For those wondering what laminat is, it is a wood floor that looks like wood, but is fake. We have it throughout our house. The advantage of such a flooring is that it is very durable and scratch resistant. In our case we have dogs and I remember our house with real hardwood floors. It was a mess of claw marks. The flooring is not necessarily that much cheaper, but better.
- Nanogate: A company that specializes in nano based technologies that makes sinks resistant to stains. Interesting technology.
- Altair Nanotechnologies: This company seems interesting though it just came on my radar and hence have little to say about.
I am also invested in the alternative energy ETF, and the mainstream energy complex converting to alternative energy ETF.
My thinking is that energy and new and interesting technologies are the wave of the future. With electrical vehicles, and more electronic devices that ever before we will have a voracious appetite for energy. And we are also on the cusp of new technologies that are possible due to computing power and the R&D that has occurred for the past decade.
If you want the bluechip companies of the future consider the mainstream computing companies. Companies like Google, or Yahoo, or even EBay are now going to enter a maturity phase where they will be the blue-chips of this generation. I am not doubtful of that. Though remember blue-chip means steady profits and value.
What would I avoid? Walmart, McDonalds, StarBucks, and so on. These companies are “fashion” companies. They are in their prime now and they will probably do ok. But give things some time things will not be as rosy. For example, I rarely eat at McDonalds. It is bizarre, but McDonalds has completely lost me as a client. I don’t know when it happened, but it did. StarBucks is the next one to go. I guess what I am saying is avoid companies that play to the traditional consumer.
I say avoid the traditional consumer plays because we are on the cusp of a change in direction of the consumer. The younger generation is much more global, much more aware of our footprint on this planet. And that is ringing in their ears. As such they will not adopt certain habits and I fear the consumer names that I gave will suffer as a result. Though I don’t know what names will be the names of the future since I am not a 14-18 year old. I am a new 40 year old. I suppose if you have teenagers have a good talk to them and ask, “so what are you buying?”
And lastly I am betting quite a bit on the main industrials because industrials are going to be completely indispensible! No way around them.