Source: Katakari / Shutterstock
[Editor’s note: “Finding the Next Big Thing in Clean Energy Storage” was previously published in December 2021. It has since been updated to include the most relevant information available.]
Over the past six years, I’ve been able to identify 21 different stocks and cryptos that have soared more than 10X. That works out to about three to four 10X investments per year. So, I often get asked: What’s your secret? How do you score so many 10X winners?
Well, as I tell subscribers to Hypergrowth Investing, the process behind my stock-picking strategy is very simple. But I’m not going to just talk about my process. I’ll show it to you in action so you can see how to find our next big stock pick in the Clean Energy revolution.
This revolution has begun in earnest. Most recently, the G-7 leaders agreed to form a climate club to tackle global climate change. They are committed to “a highly decarbonized road sector by 2030” and “a fully or predominantly decarbonized power sector by 2035.”
This announcement came a few weeks after a similar climate-focused move from the White House. U.S. President Biden has waived tariffs on solar panel imports from Southeast Asia for at least the next two years. And this has spurred on the production of solar projects across the country.
The Clean Energy Acceleration
Of course, it’s not just countries getting serious about the climate change fight. Companies are accelerating their efforts, too. MasterCard (MA) brought in its net-zero timeline by 10 years from 2050 to 2040.
Moreover, Microsoft (MSFT) tapped AES to provide renewable energy to its data centers. These are signs that the Green Tidal Wave is sweeping across corporate America, even without huge tax incentives. And they are likely coming and will accelerate business activity in this sector.
And just today, in the hydrogen world, Rolls-Royce (RYCEY) and Hyundai (HYMTF) announced they’re partnering to create hydrogen fuel cells, storage systems and infrastructure for aerospace and electrified vehicles.
With news of catastrophic heat waves and wildfires sweeping the globe, folks around the world are likely to hasten this transition toward clean energy. And as they do, certain stocks are primed to benefit.
Behind the Picking Process
First, it’s important we go over the process I follow to find the next big pick in the clean energy megatrend. But for folks new to our style of investing, don’t worry. I have a straight-forward, three-step process for picking stocks:
Find an investment megatrend that will change the world and grow by 10X-plus over the next few years.
Identify the most innovative companies in that megatrend that project as the industry’s future leaders.
Of those innovative leaders, invest in those with the most scalable business models. They’ll be able to turn their huge revenues into huge profits most effectively. And that translates to huge shareholder gains.
Now, to be sure, a lot of research and work goes into each step. My team and I spend days, weeks, months, even years analyzing technologies, companies, industries, etc.
But it all ties back to this simple process.
Find a world-changing megatrend. Find the most innovative companies in that megatrend. Invest in those with the most scalable business models.
Indeed, investing doesn’t have to be that hard. In fact, in my experience, it’s not.
You don’t need super-complex trading models. You don’t need to be able to read candle-stick charts or know all the technical indicators. And you definitely don’t need to risk it all on penny stocks or “pup coins.”
Instead, you just need some money, imagination, discipline and, most importantly, patience. You need to believe in the future and let go of the past. You need to see what will be there – not what is there. And you need to invest in tomorrow.
That’s what I’ve done my entire professional career. And that’s exactly how I found a $3 “Forever Battery” dynamo.
Picks in Action
Enough talk. Let’s see this process in action.
Step 1: Find an investment megatrend that will change the world and grow by 10X-plus over the next few years.
One industry that fits that description — energy storage.
The world is pivoting toward clean energy production. I’m talking solar, wind, hydrogen, etc. Today, about 37% of the world’s installed energy capacity is renewable, up from 30% in 2017. Our modeling suggests that number will climb toward 95% by 2050. And most of that growth will come in the 2020s as the world gets serious about decarbonization amid shifting legislation, falling costs, and improving technology.
But as you’ve probably heard before, there’s one major problem with these renewable energy sources. They’re intermittent.
The sun doesn’t shine every day. And the wind doesn’t always blow. By themselves, clean energy sources cannot power the world at all times. It’s scientifically impossible. They need help.
Energy storage is that help.
The Expanding Clean Energy Storage Megatrend
Energy storage technologies allow humans to store excess solar and wind energy in things like batteries. Then the energy can be deployed when the sun isn’t shining, or the wind isn’t blowing. It enables continuous power output at all times.
So, let me state this clearly…
Clean energy can power the world but only with the enormous help of energy storage solutions.
As I said earlier, the world will one day be powered by clean energy. That’s an inevitability. Want to still have a planet to call home in 50 years? We need solar, wind, and hydrogen power. It’s that simple.
So, if that’s an inevitability, then that means the world will have a lot of energy storage capacity by 2050.
At the end of 2020, global installed energy storage capacity measured about 24 GWh. And according to our analysis, that means less than 1% of renewable energy production is backed by energy storage.
That’s unfeasible. By 2030, most experts believe that the energy storage market’s capacity will grow to upward of 800GWh. That’s a 33X gain in 10 years.
So, let’s revisit our process.
The investment megatrend here? Clean energy storage.
Energy storage will change how we power our world. And that market is going to grow by more than 30X by 2030.
Consider that a “check.”
For the second step, we find the most innovative companies in the energy storage market. Then, we invest in the companies with the most scalable business models to find the market winners.
The Final Word
Well, my team and I have done a thorough analysis of this market, running through all the players in the space. We’ve filtered those companies through steps 2 and 3.
After all of that, we’re left with one company – one “Strong Buy” stock pick we think is the best play on the energy storage market. In fact, we’ve added it to our Top 10 stock picks as it’s ready to soar more than 30X over the next decade.
In our free Hypergrowth Investing newsletter, we often discuss the energy storage market and its potential for mega-growth – including how you can access our top energy storage stock pick in Innovation Investor.
Trust me. This is a pick you don’t want to miss out on. This single stock could be the key to unlocking your financial freedom.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post Finding the Next Big Thing in Clean Energy Storage appeared first on InvestorPlace.