Water scarcity is becoming one of the major investment themes of the twenty-first century. The smart money has already positioned itself to ride the trend --- just like they did more than a hundred years ago when the oil industry was first getting started. Rockefeller made his fortune that way, and so did forward-thinking investors who followed his lead. Today, the world's financial elite is set to dominate the "blue gold" sector, but there's still time for average investors like you to join them in a wave of profits that will last for decades.

That's why I've been telling readers for years now to focus on water stocks, because they're one of the few areas which should see sustained long-term growth throughout the remainder of...[read more]

Editor's note: Many investors are unaware that parts of Brazil are plagued by serious water scarcity issues. We often think of Brazil as a giant rainforest, but that's not quite the case. This article describes the problem. If you're a water stock investor you'll want to get our Top 10 Water Stocks report, which specifically tells you about a water stock which is doing very..."[read more]

Editor's note: I've been telling readers to consider positioning themselves in water stocks because of worldwide water scarcity, but the crisis is particularly evident in the southwest USA and several other regions of the US. Get used to it. 

(Associated Press - "Arizona Town Near Grand Canyon Running Dry") Reservoirs that supply residents’ taps are...[read more]

Editor's note: Out of all the countries on earth, China is poised to have the most significant freshwater scarcity problems because they have more than 20% of the population but only 7% of the drinkable water. This latest story is an indication of things to come in China.

(The Telegraph - "Panic after Chinese city declares tap water toxic") Residents of provincial capital in west China...[read more]

Water is the oil of the 21st century. Wars will be fought over it, nations will clash over it, and businesses will profit from it. The Establishment recognizes this and has been positioning itself accordingly. The bureaucrats and politicians in DC are being directed to tighten the screws on who controls America's water. Investors who understand this can position themselves in select water stocks to make windfall gains. Let me explain.

The "Clean Water Act" gives the feds control over "traditionally navigable waters" --- but the EPA's "Waters of the US" rule is meant to dramatically expand the Act's scope by including virtually all water sources, no matter how trivial. Ditches, groundwater, seasonal runoff, irrigation canals, livestock watering reservoirs. Any water that eventually runs into...[read more]

Investors know that water scarcity has become a real problem, not just in the Southwest USA but also in the developing economies of China, India, and most of Africa. This has led to predictions that water will become "the oil of the 21st century," with some believing that we've entered the era of Peak Water --- that the planet's fresh water reservoirs are being depleted more rapidly than they're being recharged.

Famed investor Jim Rogers is quoted as saying "There will be wars east of the Red Sea over oil and wars west of the Red Sea over water," and experts are predicting a prolonged era of geopolitical clashes over water access. The question contrarian investors should ask themselves is "Do I wait until there's...[read more]

Editor's note: "Water has become such a major global issue that it is affecting domestic elections, geopolitics, and economic growth. India is one of the regions which shouldn't, in theory, be having serious water issues. But they are, and things have just gotten started..."

(The Guardian - "Why water could decide the Indian elections") Mechanically pumped groundwater now provides 85% of India's drinking water, and is...[read more]

You won’t find any information on JG Boswell Company (BWEL) despite the fact you can buy shares in the company. That’s because there are less than 300 shareholders, and securities regulations don’t require them to file. And even though BWEL shares can be purchased OTC, there is precious-little liquidity. Daily volume is often in the low hundreds. Such is the nature of semi-private companies --- no research, no filings, and ultra-low volume. Shares are going for a little over $900. It’s tripled in the past decade. Surprisingly, despite the lack of liquidity, there are some institutional shareholders.

The history of Boswell (BWEL) is that it’s one of the largest semi-private farms in the world, and goes back almost 100 years. Their operations span close to...[read more]

There are plenty of ways for investors to profit from increased global water demand, but first let me explain my perspective: water issues are driven primarily by agriculture, which in turn is driven by economic growth.

China, India, and the developing world are gaining wealth, and the first thing to respond is agriculture. More food is required when peoples' incomes grow. Farms require water, and plenty of it. Since my position on global agriculture is bullish, it follows that I'm expecting water demand to grow.

It's estimated that about 70% of the world’s fresh water use goes to agriculture. As for the rest of it, around 19% goes to industrial uses and the remaining 11% to the cities. You can tell from these numbers, there's...[read more]

Getting your drinking water from the toilet may not sound that appetizing, but 1-in-5 Californians are already doing it. So are folks in Singapore, and dozens more cities in the US and around the world are looking at doing the same thing. The reason is simple: clean water is getting more expensive and difficult to obtain, and utilities are looking for cheaper ways to deliver it.

It's one of the biggest growth areas in the water-treatment industry, and they're calling it "potable reuse" or more descriptively "toilet-to-tap" technology. The engineers have figured out how to take wastewater and filter it, disinfect it and restore it to a drinkable (or "potable") state which can then be piped directly back into the water distribution system and to...[read more]

I've been bullish on water investments for some time now, but the big challenge has always been this: There's a very limited supply of pure-play water stocks. This has made it difficult for retail investors to participate, notwithstanding the water ETF's which have begun trading over the past roughly five years --- including Guggenheim S&P Global Water (CGW), First Trust ISE Water (FIW), and Powershares (PIO and PHO). They've all doubled. But they're too general for my purposes.

In my previous posts (here and here), I gave readers some general background on water investing, but I've been meaning to fill in the gaps with a more in-depth resource.

Even with the lack of pure-play water stocks, there are several ways for water investors to profit...[read more]

Editor's note: "I'm interested in Israeli water technology, they've had some real success. I see water as a significant investment opportunity, but finding the right vehicle is a challenge. Some unique opportunities are presented in this article."

(Boston Globe - "In Israel, water where there was none") ...state officials and entrepreneurs see collaboration with Israel as an...[read more]

Editor's note: "Investing in water is difficult but important. Few good opportunities exist, but there are some that really stand out as offering major upside. This article, while unrealistic, offers a glimpse into some of the technologies which either exist now or are in development."

(The Guardian - "The new water technologies that could save the planet") The well was a transformative invention, though it is often overlooked......[read more]

In my previous brief article about water, I said that shortages are primarily driven by agriculture, which is driven by economic growth. Farms need water, and plenty of it, and demand is increasing. By irrigating, farmers are able to increase food production.

Investors immediately think of two ways to profit: tech companies (such as "desal" technology or filtration concepts) and water utilities, both of which I mentioned. A third way is through agricultural equipment manufacturers which help reduce on-farm water consumption.

This is one of the big investment themes of the decade, and may compound during the coming 30 to 40 years.

It is estimated that:

Within about ten years, approximately two-thirds of the world's population may be living under "water stressed" conditions.

80 percent...[read more]