Investing in Energy Stocks

Investing in Energy Stocks

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  1.      Every entrepreneur must ask himself/herself if there will be enough demand for his/her product to allow his business to survive and prosper. In the production of energy, the demand is always great because the world population keeps increasing constantly.  Energy is needed to prepare the food we eat, to power the cars we drive,  to transport all kinds of supplies from one destination to another, and countless other tasks. The increasing demand provides many opportunities for investing in companies that produce the energy.

        The opportunities for investment are multiplied by the existence of several energy sources. Oil, natural gas, coal, solar and wind. A new energy source, lithium is now being used to make batteries for cell phones and cars.

        Not all energy companies are good investments. The big companies, such as Exxon Mobile, have already grown so much that now they must struggle to make a small profit.  The small companies have tremendous potential for growth. One such company, Cheniere Energy (ticker symbol LNG) went from $5 per share to $80 per share in less than 4 years. That is an increase of  1500%. 

        Of course, one can not  expect to be that successful with every single investment. The procedure for investing in energy stocks should be to first evaluate several companies and then decide which have the best possibility for growth. One way to start is by making a list of several companies under $10 and then picking the best two or threes from the list.

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