Review
Named a top investment book of the year by the Stock Trader’s Almanac 2010. “The book. . . might well guide some very satisfactory investments. . . Mr. Hoffmann does an able job of laying out the basics of water scarcity and delivery, and he presents a persuasive case for water’s looming importance, rivaling oil as the most important commodity this century. . . A strong current of the investing advice in “Planet Water” is Mr. Hoffmann’s contention that water uti…
Buy Planet Water: Investing in the World’s Most Valuable Resource at Amazon
So how valuable is water? Ponder this: water has no substitute, regardless of price – the only commodity in the world of which this is true. The water industry is enormous; Hoffman says it’s the third larget in the world, on par with oil & gas and electricity in terms of embedded capital. With over 97% of the earth’s water as saltwater, and only 1% is easily accessible surface fresh water, there is going to be a growing battle for the right to fresh water, and as the Chinese say
” Crisis = Opportunity”. Hoffman discusses the seemingly cavalier disconnect between the human economy and our dwindling natural resources. This may explain why the water “industry” has not gained popularity with the general investing public when compared to the more traditional and well-followed sectors of our global economy.
I found this book helped answer many questions such as; should I buy individual stocks or a mutual fund, which companies are best positioned to address the future, is demand for safe water outpacing supply, what is the global situation and how much new infrastructure will the U.S. need in the near future.
I always find it helpful to look at the table of contents, so here are
some of the chapters:
Chapter 1 – Water
Chapter 2 – The Global Water Condition
Chapter 4 – The Cost of Clean Water
Chapter 5,6,9 – The Business of Water; Utilities; Infrastructure
Chapter 12 – Desalinization
Chapter 13,14.16 – Emerging Issues; Water as an Asset Class; Looking forward
Hoffman says that ” virtually every country in the world is presented with some combination of water quality and quantity issues”. In tandem with his technical analysis Hoffman also presents his case for the substantial increase in waters value. I learned of a number of additional drivers that have bolstered the argument for water investing. Around the globe, aging and dilapidated water and sewer infrastructure is in dire need of repair, and new infrastructure must be built to meet the needs of growing populations in both developed and developing economies. I’ve never been a huge stock investor and stick with mutual funds most of the time. I would recommend this book to those self directed investors like myself who want to further analyze trends in the water industry
Water is the third largest industry in the world and will be driven by a substantial increase in its value during the 21st century, say author Hoffman. In substantiation, he cites the World Health Organization estimate that 1.1 billion do not have access to improved drinking water and 2.6 billion live without proper means of sanitation. Half of all hospital beds are filled with people suffering from waterborne and water-related diseases. The health burden also includes the annual expenditures of 10 million person-years carrying water from distant sources. An estimated 1.8 million deaths occur annually from diarrheal diseases alone. Finally, China has 22% of the world’s population, and only 8% of its water.
Over 97% of the earth’s water is saltwater, and only 1% is easily accessible surface fresh water. If per-capita consumption continues to increase at its current rate we will be using over 90% of available fresh water by 2025. Estimated total global water costs 2008=2025 will be $16 trillion – includes current operations and expansion according to international goals.
Semiconductor makers requires lots (up to 1 billion gallons/year/major plant) of ultra pure water – it is estimated that for every $1 they spend buying water, they spend another $20 in added purification and $10 in waste-water pretreatment. Health care, cooling towers, pharmaceuticals, and heavy metal processing also require specially treated water.
Global warming will add to the world’s water problems due to increased floods and the resulting spreading of fertilizer and sewage; increased drought will be another problem.
The rest of “Planet Water” provides a good overview of the various equipment and chemical needs for water purification and waste-water treatment.