Question: What do all these long postings about Ethanol, Biodiesel, Global warming, and CFLs have to do with investing?
TK: Superior investing arises out of having a deeper understanding of the companies and industries you’re investing in than other market participants.
Global warming is not just an impending ecological disaster, it is an economic disaster as well. Understanding global warming, energy efficiency, and renewable energy are the first steps to protecting our financial assets from the effects of global warming and peak oil.
Many consider it immoral to profit from disasters. That is a recipe for going broke when the disaster hits. When there’s a drought, I want to be able to pay my water bill. If the water system shuts down, I want to be able to come up with whatever it takes to buy a few gallons wherever I can find them.
It’s sensible to use our investments to mitigate the problems we see on the horizon, and make a profit which we can use to help shield ourselves and those we care about from those problems when they arrive. To do that, we have to understand the nature of those problems, and the possible solutions.
Causing disasters is immoral. Preparing is the right thing to do.