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Investments in the Water Industry

Written By Nick Hodge

Posted December 8, 2009

I was appalled when I received my most recent water bill.

And you should be, too.

I wasn’t angry at the amount of water I consumed; I generally try to conserve as much as possible. And, unlike with most other household bills, I wasn’t griping about the high cost.

Instead, I was furious with my low rate. And more and more people are beginning to feel that way.

So Priceless, It’s Cheap

As the only external liquid necessary to sustain life, you’d think water would carry a hefty price tag.

But somehow, society assigned higher values to other, less crucial, fluids. Gasoline and Coca-Cola, for example, routinely sell for several times the price of the only truly life-sustaining liquid.

That’s all about to change. And yes, it will be a difficult and hard-fought transition for one reason: Too many people think water is a right.

To clarify, too many people think water is a free right.

This is not and cannot be the case…

Freedom Isn’t Free; Water Isn’t Either

How many times have you seen a bumper sticker declaring "Freedom Isn’t Free?"

Indeed, freedom has cost trillions of dollars and millions of lives. And now, water is walking down a similar path.

We’ve already begun seeing fighting, protests, and high-level court cases erupt over the so-called right to water.

At one time, the argument for water as a right might’ve had a leg to stand on. But with world population about to crest 7 billion; with industry and agriculture consuming more water than ever; with growing levels of pollution; and with a consumer society that would rather have cheaply-produced goods than stringent water regulation… I have to say no, water is no longer a right.

Twenty-minute-long hot showers are not a right. Toilets that use more than a gallon each flush are not a right. And leaving the water on while you brush your teeth is not a right.

And as the world realizes this… fortunes stand to be made.

It’s a Commodity, Silly

You know all those West Texas millionaires whose only windfall was owning land above oil? Or what about those Middle Eastern Sheiks? Their only advantage is geographic.

And yet, we gladly pay $3.00 a gallon for a liquid someone extracted and sold.

For reference, my last water bill was only $27.00. And that was for thousands of gallons of water.

By all measures, that has to change if we as a nation are to continue providing clean water for all American citizens. Same holds true for the rest of the world.

On the supply side, costs are going up. Water needs to be more heavily cleansed to meet strict government regulations. And infrastructure is deteriorating. That means we need billions of dollars worth of new treatment plants, pipes, pumps, and valves.

And demand is only increasing with population and heavy industrial use.

The only way for supply to meet demand is to increase price. Fundamentally, this is the same reason oil prices rise when supply is in question.

And it’s the same reason a Google news search for "water rate" yields these type of results, week after week:

  • Water Rate Hikes OK’d for Las Vegas-Area Customers

  • Omaha Water Rates to Rise 4%

  • Elgin Water, Sewer Rates to Rise

  • West Melbourne Water Rate Hike Jumps 1st Hurdle

Every single day another city or state raises the cost of water. Sooner or later, you’ll be paying more.

Hopefully sooner.

Harnessing the Capitalist Spirit

To be sure, the water industry is at a major crossroads. It will be hard for many to accept the blatant reality that water now costs more.

We’re already seeing rallies and protests to that end.

But why protest when you can profit?

Think about it…

Where would you want to have been when oil was commoditized? Standing in a picket line or at your broker’s office loading up on Exxon and Chevron?

That’s what I thought.

It’s time to harness the capitalist spirit.

You can get in on the ground floor of a for-profit water industry right now. You just have to know how to do it.

From water utilities… to parts manufacturers… to agriculture exposure… there are many ways to profit from this coming boom.

And in a new report, I give away the very best water stock to get you started.

Investing in water now is an easy way to get in on the next great commodity boom. Click here to get your report now, before investment history is made without you.

Call it like you see it,

Nick Hodge

Nick