Ishares clean energy Etf - thoughts

Bobziz

This may be a useful starter:
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.businessinsider.com/stock-market-green-energy-bubble-good-world-climate-change-2021-1?amp&ved=2ahUKEwjXg4Wsk_PuAhVQa8AKHRnfAdYQFjAEegQIFxAC&usg=AOvVaw38CoJxSqzOLHWYeS6TcyoU&ampcf=1

ChilliBob

Cheers, that was an interesting read

Alexland

ChilliBob said:

Oh and the irony is I read that ft article a while ago and shook my head at people doing such whim investing into proper niche stuff! 

Out of interest did our warnings save you from 'pulling the trigger' on this one?

ChilliBob

Ha ha I nearly did today when it was just a shade under 900.. Couldn't find it quick enough on iWeb before 4:30.

At 900 a share I'd be willing to put a couple of k in and see what happens. It's still on my list for *very small* holdings. 

ChilliBob

I'm aware it's probably irrational, but sometimes you can't rationalise every decision. Probably doesn't help thay I've been reading the David Attenborough book recently and am thinking a lot more about ESG, clean energy, 'synthetic' food... But.. All through a sceptical lens! (as you can see since I've pondered on this for a while) 

doe808

ChilliBob said:

I'm aware it's probably irrational, but sometimes you can't rationalise every decision. Probably doesn't help thay I've been reading the David Attenborough book recently and am thinking a lot more about ESG, clean energy, 'synthetic' food... But.. All through a sceptical lens! (as you can see since I've pondered on this for a while) 

sometimes a healthy sceptical is the best way to be (and obviously not like the weirdo flat earth, anti-vaxxer, climate change denier brigade) . I do a bit of work in the industry and attend a lot of networking, BD events, etc. All very positive, but you have to take with a pinch of salt as most are trying to pitch somthing or another. What I would say is that this is an area that is going to grow and grow. The money coming in from pension funds who members want to 'make positive changes' is way ahead of any modeling that I have seen. Not advice by the way, just what I see in my job.

Thrugelmir

ChilliBob said:

I'm aware it's probably irrational, but sometimes you can't rationalise every decision. 

You can debate with yourself by writing two lists, the pros and cons of a particular investment. Weigh up the opportunity in a detached manner. May well help reduce the number of holes you fall into. 

Bobziz

Having stated that this was a long hold for me, I sold the next day Luckily I got out with 30% profit in 4 months. @Alexland asked the key question about knowing the underlying investments, and I realised that I didn't, or at least not well enough. I too had got caught up in the David Attenborough stuff (The film 'A life on our planet' is a must watch by the way), and invested largely on the basis of a strongly held belief that the path to clean energy is one that we must travel, and travel at pace. However, this information alone isn't the basis for an investment in an unmanaged index fund of 30 companies. 

I may invest in the sector at some point in the future, but it will be via a managed fund, and with a better understanding of how such companies will ensure decent growth and earnings in what is fast becoming a very competitive field. Massive investment required in what are effectively utility companies, with heavily regulated operations and price controls. Plug et al are another matter of course, but good research required to properly understand the intrinsic value/opportunities & risks.

I recall another member saying something along the lines of "you should have at least 3 good reasons for choosing an investment". I believe this is very sound advice.

Thrugelmir

Bobziz said:

Plug et al are another matter of course, 

The company is currently worth $19.75 billion.  Yet the company itself is only forecasting annual revenues of $1.24 billion by the the end of 2024.  Not a valuation to start buying in at now. The winners are those who got in at the ground floor pre IPO. . 

aroominyork

Alexland said:

How much do you know about the underlying companies? Do you really need to take the risks associated with thematic investments? They tend to launch in bull markets, get bought by unsophisticated retail investors, can do quite well riding a speculative wave (often before you buy them) but are eventually likely to underperform a more diversified fund before getting closed in bear markets.

https://www.ft.com/content/7e16172e-ce51-4c41-a139-3a796790bbbe

Why does it only discuss ETFs? Does it not apply equally to thematic OEICs and ITs?