Here's what Mario Gabelli has to say about investing in water rescource companies.
"Like oil, water is a finite resource that over time will increase in value as the gap between supply and demand narrows. Today, the annual investment in water (water treatment and transmission infrastructure, products, and services) is $87 billion in the U.S. and $365 billion globally. In a recent survey conducted by the U.S. Environmental Protection Agency (EPA), water utilities estimated that over the next 20 years $277 billion would have to be spent to rebuild the infrastructure required to maintain current clean water standards. A nearly equal amount of capital will need to be invested in wastewater treatment facilities built with EPA grants in the 1970's, which are now nearing the end of their useful lives. So, in the U.S. alone we should see significant increases in investment spending across the water space during the next two decades.
We expect even more rapid growth in water investments in developing nations. In the U.S., 11% of water consumption is residential, 59% industrial, and 30 % agricultural. In developing nations the mix is 8% residential, 10% industrial and 82% agricultural."
If you're a long term investor, water and other basic resource commodities are the place to be invested. Slow, steady growth is almost assured.
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