Energy
Investments in Renewable Energy Companies
Have you ever wanted to invest in renewable energy companies but aren’t sure where to or even how to do it?
Here we explain how to invest in multiple renewable energy companies selected by investing experts for long-term profits with previous excellent results. These portfolios can become a passive income while supporting a better world. Learn more, right here!
How to Invest in these Companies
The most obvious and best way to invest in companies is by buying shares. You can do this on investment platforms by signing up and purchasing whole shares or percentages of a share.
Some platforms even allow investors to buy shares in portfolios of companies from the same niche. For example, you can invest in a portfolio all about tech, cryptocurrencies, and you guessed it – renewable energy companies.
Although currencies, foreign markets and similar trading aren’t a typical way of investing in renewable energy, they are not entirely irrelevant. For example, you could short the value of gold (make money from it decreasing in price) because gold mining is harmful to the environment, and a new policy might prevent gold miners in the future. However, this is a hypothetical situation only.
How Profitable Are Renewable Energy Stocks?
This type of energy stocks have been profitable for long-term investors. Naturally, some companies are outperforming others and providing better returns.
One of the clearest ways to understand the profitability of investing in stocks over the last years is to look at the returns on the aforementioned renewable energy stock portfolios.
On eToro, their currently advertised renewables portfolio made losses of 10% and 5.85% in 2016 and 2018 respectively. However, these were massively outweighed by gains in the other years. In 2017, the same portfolio made a profit of over 52%, while in 2019 and 2020 it made profits of 21.9% and 68.9% respectively.
The bottom line is that long-term investing in renewable energy stocks can create wealth that far excels what you can get in the best banks’ savings accounts. But remember, investing always puts your capital at risk, and past results do not always indicate future ones.
Reasons Why Renewable Energy Will Increase in Value
Renewable energy is receiving substantial investment from most governments from around the world. This investment will help create jobs and grow the industry into a powerhouse that can save the planet and become commercially profitable. Activism and calls for more to be done are growing, which will only increase more investment and force law changes, such as the pending diesel vehicle ban in the UK.
On a macro scale, other political events will help companies grow in 2021 and beyond. Not least the US election where Donald trump was booted out of the White House along with his climate change skepticism – and replaced by Biden which already are looking at a direction of positive changes in renewable energy.