Quick Take: I watch smart grid stocks out of the corner of my eye. For one thing, mutual funds and investment banks often consult with me by phone when exploring the smart grid sector for possible deals. For another, stock prices usually lag reality but they can sometimes predict it. Sometimes motivated investors will uncover information that reveals where things are headed.
I thought you might like to skim the article described below because it had some fresh ideas for companies and categories you might not have considered before. - Jesse Berst
The Motley Fool investment site is out with a piece explaining how to make money in smart grid stocks. Their idea is to use an exchange-traded fund (ETF) that specializes in the sector, the First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (NASDAQ: GRID).
Okay, that's a fine approach for the lazy investor. But if you agree with the advice to invest in things you know... and if you know smart grid... then maybe you'd prefer to invest in individual stocks. And the Fool article has some suggestions for you there.
Some of those suggestions are from companies that are tangential to the mainstream smart grid, but that benefit from its growth. These include solar inverter makers and utility contractors. It's a clever investing concept. Sometimes the best opportunities are at the fringes where the competition is not as deep.
Jesse Berst is the founder and Chief Analyst of SGN and Chairman of the Smart Cities Council, an industry coalition.