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Cleantech Investing

Written By Nick Hodge

Posted October 13, 2009

George Soros, like most of us, loves money.

And he has a lot of it. With a net worth of $11 billion, Forbes ranks him as the 29th richest man in the world.

You don’t get that rich by making bad financial decisions. . .

Recently, it was reported that Soros was connected to a tentative financing deal related to the sale of the St. Louis Rams to an investor group that counts Rush Limbaugh as a member.

That’s a big change for a man who once said getting George W. out of office was the central focus of his life! I guess when it comes to making serious money, ideology takes a back seat to the bottom line.

This is, after all, the same man who reportedly made $1 billion betting on the devaluation of the pound sterling, the currency of his adopted nation.

And this is the same Soros who, in 2008, wrote about a 25-year "superbubble" that was about to burst.

So when this guy acts, you can bet he acts with calculated precision. . . And you’d better pay attention to what he’s doing.

This week, Soros made his market presence known with a major energy announcement.

1.1 Billion Reasons Soros Loves Cleantech

Speaking in Denmark over the weekend, Soros announced his plans to invest more than $1 billion of his own money in clean technology.

He’s just the latest member of the billionaire parade to march toward cleantech for its lucrative returns — even during a recession: Buffett, Khosla, Gates, Pickens, and Turner have all turned over million- and billion-dollar green leaves.

Soros, for his part, will look for "profitable opportunities" in the field through a $1 billion personal investment. He’s also creating a foundation called the Climate Policy Initiative and will fund it to the tune of $100 million over the next decade.

Now we know that these men are not sandal-wearing hippies, keen on saving the world.

Instead, they’re focused on turning a tidy profit. . . and they know cleantech is one of the easiest ways to do it.

They don’t know anything we don’t. I’ve been telling anyone who will listen to invest in clean technology. These billionaires are simply doing what they do best: recognizing profitable trends early. . . and capitalizing on them.

Venture Tested, Venture Approved

Consider this nugget from a recent Reuters report:

Clean technology has for the first time become the top category in U.S. venture capital investment, eclipsing biotech and software, as private money follows the government’s lead, the Cleantech group reported.

In the third quarter, clean technology earned 27% of all venture investment, beating out biotech (24%), software (18%), and medical devices (17%). Logic indicates, then, that the world’s most sophisticated investors regard clean technology as worth more than a cure for cancer or the next Google.

In total, there were 112 cleantech deals worth $1.9 billion in Q3. That’s 60% better than the $1.2 billion that changed hands in the second quarter. If you remember, even Exxon is in on this action, having committed $300 to research algae biofuels a few months ago.

So far in 2009, over $4 billion worth of cleantech venture deals have been completed.

And the bullishness continues. . . right up the chain to private equity and onto the public markets.

In fact, The Cleantech Index (^CTIUS) has outperformed both the Dow Jones and S&P 500 so far this year. Take a look:

Cleantech Index

These are all facts you can’t afford to ignore. Cleantech, in all reality, could be the market’s hottest sector. . . attracting billionaires and billions in venture capital alike.

As Soros has just proven, it’s not too late to get a piece of this red-hot sector. His billion dollar investment, coupled with the billions in venture and global stimulus dollars, will help this bull run for years to come.

As it happens, Soros will be speaking later this week at The Buttonwood Gathering in New York, a sold-out summit of the world’s leading economic minds. Our new analyst, Adam Sharp, has reserved his seat at this highly-secured event, where the theme is "Fixing Finance."

He’ll be there reporting in person, as Soros, Ross, Geithner, and others offer their opinions on topics ranging from international regulatory schemes to golden parachutes for failed bankers. And Adam will pass along his findings — separating the truth from the hype — in a special report for Wealth Daily readers as soon as he gets back.

Call it like you see it,

Nick Hodge


P.S. As capital continues to pour in, taking gains from clean energy stocks has never been easier. In fact, I’ve designed a unique system that takes all the guesswork out of it. My readers have used it to add 32% to their portfolios every single month for the past year. Isn’t it time you — like these savvy readers and the world’s richest individuals — started making easy gains like these?