With our infrastructure collapsing all around, investment opportunities abound. One place that might not be so obvious is water. The pipes that move the water around are eroding and the companies that replace them will benefit.
We’re back at the Wall Street Green Trading Summit for day two, and William Brennan, Managing Principal, Brennan Investment Partners spoke about investing in water.
First, Brennan tried scaring the hell out of conference participants. “In the next 24 to 36 months expect a military outbreak somewhere related to water,” he warned due to shortages in many impovershed nations. “Water bills will be up by 2 to 5 times” in the next few years in California and China is spending money on “military and water.”
When he wrapped with the scary news, he said the best investment opportunity was in pipes. At least for the U.S. The “pipes for water conveyance…65% to 75% of them” go past their usefulness in 2010. He mentioned keeping an eye on Northwest Pipe (NWPX) as a company that would have benefited. He sees pipes being a $125 billion market segment.
He also, added that the U.S. is falling behind in water research. China and the Pacific Rim have research centres set up for focusing on water, but we don’t.
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