Portfolio update 5
Electrification
Investment Thesis: electrification is a major trend driven by IA (data center), robotisation, air conditioning, EV (hybrid) and now energy independence (oil shock similar to 1973).
Consequences:
Major breakthrough in energy storage & batteries, and lithium and phosphate significant increase in consumption;
Drive toward more efficient energy consumption in particular in data center and network (fiber glass connection) as well as in the industry;
Gas turbines expansion as a bridge before a nuclear energy renaissance can product its effects;
Electricity might displace oil and hence contribute to the de-dollarisation of the world economy.
Downside: copper prices and/or shortage, slow EV adoption, lack of funding in developed countries.
Investment ideas:
Gas turbine and infrastructure: Siemens Energy (Germany), Rolls Royce (UK), GE Vernova (US), Eaton (US), Cembre (Italy)
Transformers: they are in short supply currently: ABB (Switzeland, Hammond Power (Canada), Arteche (Spain), Schneider (France), Hubbell (USA) , Mitsubishi Electric (Japan)
Power cables and fiber connection: Prysmian (Italy), Nexans (France), Cenergy Holdings (Greece), American Super Conductor (US), Dycom (USA), Corning (USA)
Batteries: Wartsila (Finland), EOS (USA), STIF (France)
Batteries Matérials: Umicore (Belgium), Albemarle (USA)
Builders: Quanta Services (USA), Spie (France), Primoris (USA), Argan (USA)
Energy savings: Itron (US), 2CRSI (France)
Copper, uranium, rare earths and gas (see other portfolio updates)
Not an investment advice, just reflecting my own portfolio and sharing ideas.