You are currently viewing WATER: A source of life and investment opportunity
 Water is the essence of life. It may seem like a limitless resource, considering that most of the planet is covered in it. But freshwater, the kind that we need for drinking, farming and to sustain life itself, isn’t infinite. In fact, the World Wildlife Fund estimates that by 2025, two-thirds of the world’s population may face water shortages. The United Nations believes that more than 2 billion people are living in countries that are already experiencing high water stress, and climate change, a rising global population, increased demands from agriculture and the expansion of urban areas are all contributing factors that will only heighten that stress in the coming years. With water scarcity comes a number of opportunities for forward-thinking investors to invest in water – including utilities, water treatment companies and water futures.

For reasons related to both the necessities of life and our ongoing environmental crisis, water stocks show a real upside for financial growth. First of all, using water is obviously not a discretionary purchase. This means that water will always be in demand and that companies that buy and sell water have a built-in biological demand.

Second, water stocks have grown over the past few years. This is for many reasons, including the increase in demand and the fact that water infrastructure is aging. As a result, many public entities have turned their public utilities to private companies. These companies are often able to make cheaper repairs and lack the political barriers that will stop them from raising rates in order to fund improvements.

There is no shortage of water stocks to buy. Many of these stocks are American-based, so they are subject to the laws of the federal governments and various states in the United States. These include Aqua America, EcoLab, American Water Works, Consolidated Water company, and more. These stocks also have an added bonus: They offer dividends. The yield is relatively low, usually around 1%, but this provides an added bonus if you are looking to purchase water stocks and achieve some level of diversity. Indeed, this is one of the chief benefits of water stocks: As a utility, they have a relatively strong cash position and are able to offer dividends in addition to their strong growth potential.

If you are looking to diversify your portfolio with international water stocks, there are also a variety of options. For example, many Canadian water stocks exist that have tremendous potential for continued growth. These include Canadian Utilities, Pure Technologies, BluMetric Environmental, and H20 Innovation.

If you are more interested in other international stocks that do business out of North America, don’t worry, there are plenty. With a bit of research, you’ll have no trouble finding a water company stock that fits your portfolio.

Why is Michael Burry investing in water?
He prefers water-rich farmland away from large governmental and infrastructural limitations. Burry has said in interview: “What became clear to me is that food is the way to invest in water. That is, grow food in water-rich areas and transport it for sale in water-poor areas.
How To Invest in Water Commodities. … 9 The iShares Dow Jones U.S. Utilities Index ETF (IDU) provides some exposure to water-related stocks. 10 Other new alternatives include the Invesco Global Water Portfolio ETF (PIO), which tracks the Nasdaq OMX Global Water Index,11 and the First Trust ISE Water Index Fund (FIW).
Item                                                  Gallons of WATER needed to produce 1 Pound
Sheep                                                 1,248
Walnuts                                            1,112
Coffee                                                1,056
Wine                                                  872
Investing in water ETFs can be a convenient, low-cost way to gain access to a basket of stocks of water utilities, companies involved in water purification, and related businesses. However, investors should avoid allocating too much of a portfolio to just one sector fund that concentrates on a niche area of the market.
Source: Internet.