How to Invest in Water Stocks

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To invest in water stocks, consider putting money in foreign markets where fresh water is not readily available and water treatment plants are still growing. Consider investing in either bottled water companies or water treatment plants with tips from an investment consultant in this free video on investing.

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Video Transcript

When we turn on our taps in the morning out comes clean, fresh water that we can drink right out of the tap. Hi, I'm Roger Groh of Groh Asset Management. We're spoiled because if you've traveled in half the world, especially south of the equator, when you turn on that tap, for sure you can't drink that water. So how can you benefit from this? Well it's not that people don't want clean water, they do, and there are two ways to look at this. Either immediately for drinking they can buy bottled water here in the US or Europe or certainly in the underdeveloped markets, or you can buy companies that actually make water treatment plants clean fresh water and ship it to homes like we have in our neighborhoods here in the United States. Some companies here in the United States that you can take a look at would include Watts Water or perhaps Aqua America but if you look in Brazil and Sau Paulo, anybody ever been there? Well their water company is publicly traded and they offer more upside. Furthermore as you start looking into Asia, especially India and China where clean water is at the top of their list for environmental projects to create, you can now buy companies in those countries investing in water treatment plants. Be very careful, this is not traditional investing as you think of here in the United States, but really that's where most of the growth is going to be. Why? Because today we have clean water in our homes and there aren't going to be many more homes built for the next many years. In addition, we already drink bottled water and we're spoiled. So the future, look to places where they have dirty water today or no clean water. That's really where the bulk of the growth is going to be. Now it might surprise you to learn that the largest water companies in the world include Coca-Cola, funny to think about but it's true. And include Pepsi Cola and include the beer companies because the filtration process that they use to create clean water to put in their soda and beer is the same process that a water company creates to put water in a bottle. So it's all, not a whole lot of new technology that they can use and they're very good about packaging and distributing. So even though they may not be solely focused on water, they may be a little bit safer way for you to play clean water. Hi, I'm Roger Groh and thank you for spending a few minutes with me.


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