Message Font: Serif | Sans-Serif
No. of Recommendations: 3
We all would have to agree with the no brainer forecasts on the need for massive investment in aging water systems and growing demand for water throughout the world. Desalination, filter systems, transport and wastewater treatment,etc.

WTR is a long-term play (and a great one!), and while the water investment idea received some attention in 2005, it is bound to fall off the radar screen as it just isn't sexy...and the number of pure play water companies are few and far between really. Even worldwide. But WTR sees this, continues to make acquistions, talk about the trends, and knows governments will have no choice but to invest billions of dollars over the next 20 years to upgrade aging systems--and do governments have the capital to invest in this? So I love the underground activity in industry consolidation. WTR carries more debt with the acquistion strategy, which is always worrisome, but they have a guaranteed revenue stream: everyone will always need water. Love it.

Consolidated Water in the Bahamas (desalination and water supply in the Virgin Islands with little natural fresh water) has done remarkably well for me in the last few years. Wish there were more like them. Cuno was good too, before being bought by GE. Pentair will do well one day. Next week, there is a small company called Basin Water doing an IPO to be priced around $8-10/share--they have some patents around wastewater treatment that seems to be well received. Worth a look for sure.

Have any of you invested in PHO, Ishares water resources ETF? I'm up about 10% and recently added another position in this. Will continue to do so on significant dips.

So,perhaps for all of us: Water is a great buy and hold. Buy it, add on significant dips (or even better, when the market ignores water), don't worry about short-term drops, and in 10-15 years we'll be sipping Rum drinks on St. Thomas...on ice!
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.