Keys to Investing in Renewable Energy Stocks

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We're sharing a deep dive about the renewable energy industry, discussing some promising AI and AR stocks, helping you pick a financial planner, making sense of Berkshire Hathaway's cash stockpile, and more.
— Katie Carrera, Stock Up Editor

What You Need to Know to Invest in Renewable Energy Stocks


With climate change concerns rising, the global economy has been making an increasing effort to turn away from greenhouse gas-emitting fossil fuels and toward clean, renewable energy sources.

From 2012 through 2017, the global economy spent a staggering $1.5 trillion to add 1 million megawatts of new renewable power capacity. As a result of that investment, there was enough renewable electricity-generating capacity to meet 24% of the world's power demand in 2017.

But that's only part of the picture. Developed countries will need to spend $11 trillion in the coming decades to become 100% powered by renewables. That's a massive market opportunity for companies operating in the renewable power sector.

Check out the article to learn more about what you need to know if you're considering investing in the industry. We're breaking down key metrics for the renewable energy industry, the challenges and opportunities that lie ahead, and the potential risks.


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Watch: The Best Stocks to Invest in AI and AR


The Best AI and AR Stocks

Both the artificial intelligence (AI) and augmented reality (AR) markets are projected to grow by tens of billions of dollars in the next decade. In a recent discussion on YouTube live, our analysts discussed some of the companies that could take advantage.


Don't View Warren Buffett's Cash Stockpile as a "Warning"

Warren Buffett, the chairman of Berkshire Hathaway (NYSE:BRK-A) (NYSE:BRK-B), is one of the greatest investors of all time, if not the greatest. So when he invests, people listen. Or, as has been the case recently, when he doesn't make an investment, people listen.

Over the past three quarters, Berkshire has been a net seller of stocks, boosting the conglomerate's massive cash hoard to $122.4 billion. The company also slowed the rate of its share repurchases between the first and second quarter. Some, including one Fool.com contributor, may interpret the inaction as a danger sign for investors. After all, if Buffett isn't finding anything of value, it could signal that he thinks stocks are way overpriced or that an economic downturn is imminent.

But there's also a compelling counterargument. Recessions are nearly impossible to predict, and investors might not want to take Buffett's relative inaction as a cue to avoid the market or alter your long-term plans.

  • Berkshire's still buying some stocks: The cash pile is high but Berkshire added to positions in three cyclical industries: banks, airlines, and oil companies. Those are all cyclical stocks — ones that boom during economic good times and busts during downturns. These are some of Buffett's favorite sectors, but it's also not a move you'd expect if you're anticipating a recession.
  • Context is king: Buffett has a problem that everyday investors don't: Berkshire is a cash-generating machine. The company must continually buy merely to keep its cash levels flat. Also, consider that only a small number of companies offer shares that can move the needle for Berkshire, and it's rare that they're significantly undervalued. That's not the case for regular investors.

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Is Roku the New Netflix?

The top video-streaming operating system and the world's largest premium streaming service appear to be passing ships. Roku (NASDAQ:ROKU) stock has more than quadrupled in 2019 and is clearly one of the market's hottest stocks this year. Netflix (NASDAQ:NFLX), on the other hand, has seen better days. The former is still trading modestly higher this year but is falling sharply for the second consecutive month.

There was a time when it seemed that Roku was riding Netflix's coattails. What was good for Netflix was good for Roku, and there's a fair amount of truth to that. Netflix launched the cord-cutting revolution with Roku as a major beneficiary.

However, we're now seeing that what's bad for Netflix as the streaming landscape evolves is good for Roku.

Read the rest.


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Quick Reads

  • Canopy Growth this week reported a horrible, no good, very bad quarter. Let's take a closer look.
  • WeWork's parent company filed its S-1 as it moves toward an IPO. But you should keep an eye on some odd things about its corporate governance.
  • The CBS and Viacom merger is just the start as the company vies to compete in a media market dominated by giant organizations.

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