The 10 Energy Stocks we're investing in right now
Energy consumption is increasing rapidly, particularly due to the growth of AI data centres. It is expected that renewables will continue to grow at rates exceeding 30% throughout the decade, meeting most new energy demand.
10 Stocks powering into the future
- With energy use increasing at the fastest pace in history with the advent of AI data centers, we are going to need an all-of-the-above energy strategy until renewables are completely built out over the next couple decades.
- As things stand, oil demand is still growing at about 1% per year. Natural gas demand is growing a bit over 2% per year according to the IEA. Coal is also growing at about 1% per year, but that is down significantly as most places are trying to swap to gas and alternatives. Coal demand should turn over this decade.
- Alternatives are growing at breakneck rates near 50% year-over-year. It is anticipated that renewables have growth rates over 30% throughout the decade as they absorb most new energy demand. Solar is the fastest growing energy source by far.
- Utilities recently had a small run up and remain unexciting unless they correct again. High capex and regulated rates rarely lead to great opportunities. Yield Companies screamed higher recently and seem poised for a decline. I am not a big fan of that business model.
Invest in the disruptors
We exclusively invest in stocks that are great, or have the potential to be great — simple. By strategically aligning with the most significant secular trends we discover stocks that exhibit resilience against market volatility, and remain relatively unaffected by booms and busts. Our top 10 energy picks are disrupting and leading the energy market within these significant energy trends.
Energy Transition
Environmental Sustainability
Renewable Energy Integration
Renewable Energy Storage
Energy Security & Independence
Energy Infrastructure Development
Smart Energy Management
Smart Grid Technology
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Understanding energy demand
- Energy pipelines are all fairly to slightly overvalued in my opinion as yield chasers push prices up. Yes, you can own them if you don’t care much about growth and just want the dividend, but, there are safer ways to go about generating middle single digit returns.
- In energy I want to find the biggest cash flows and growth. Oil and gas are poised to do very well through the next couple cycles. Yes, at some point everything declines on a recession, but I don’t see energy demand going anywhere but up for the next decade. Remember, that is unusual, we had been flat on energy use for a decade before data centers started to explode.
- The transition to EVs is a at least a year behind and probably four or five. What I thought would happen in 2026-7, now appears more likely around 2030. I still think we see oil demand flatten and tip, but the cash flow rich period for oil and gas will last a bit longer than I thought, hence, my interest at least until the next recession.
- Because of the delay in EVs and the negative narratives, lithium stocks got destroyed. This might be a very rare opportunity to buy the future for literally dirt cheap.
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