Renewable Energy Stocks: Is Now a Good Time to Buy?
The world is going through a significant shift in the way it creates and uses energy, moving away from carbon-based fuels and toward renewables. The transition will take a very long time (think decades), and spending on clean energy will be important for years to come. It is a big opportunity, but does that translate into an investment opportunity? The answer isn't as easy as you might hope.
Benjamin Graham, the man who helped train Warren Buffet, has noted that price is what you pay, and value is what you get. In other words, stock prices don't always align with the value of a company -- in fact, the two often deviate greatly. Graham uses a story to explain this, in which you (as an investor) are partnered with a person called Mr. Market. Mr. Market has wild emotional swings and some days will offer to sell to you cheaply, and on other days, he is willing to buy at premium prices. Your job is to figure out when Mr. Market is selling too cheaply, which is a time to buy from him, and when he is willing to overpay, which is a time to sell.
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Source Fool.com