Investing in Water?

Water investment, often overlooked, is making waves. Initially portrayed in media as a post-apocalyptic necessity, it's now gaining traction as a viable thematic equity. 

While humanity's need for water is as undeniable as the need for coffee on Monday mornings, investing solely based on scarcity fears is about as wise as trying to drink from a fire hose. The landscape is evolving faster than a duck paddling upstream, driven by technological advancements and increasing industrial demand. 

This shift demands a fresh investment perspective, one that focuses on companies tackling water challenges with innovative solutions. Rather than a doomsday narrative that leaves you reaching for your tinfoil hat, this approach emphasizes tangible catalysts and real-world drivers. 

It's about investing in companies poised to profit from addressing water issues, not about saving the world. I offer a pragmatic view, steering away from alarmist rhetoric and instead focusing on actionable insights for investors who prefer their investments to be as refreshing as a cool glass of water on a hot summer's day.

The global water situation is like trying to herd cats—complex, messy, and guaranteed to leave you soaking wet. Water demand has surged like a stampede at a Black Friday sale, up by 40% in the past four decades and projected to rise another 25% by 2050. Meanwhile, water supply has shrunk faster than ice cream on a hot day, halving since 1970. Pollution adds insult to injury, turning our tap water into a questionable cocktail, complete with untreated sewage and microplastics, like finding a hair in your soup.

And let's not forget the over-extraction of water, like avocado farming in Mexico, causing environmental headaches. Depletion of underground aquifers, providing 35% of world water, makes it seem like we're trying to squeeze water from a stone. Economically, we're treading water—$70 trillion of global GDP could dive into troubled waters by 2050 due to water stress, and we're already losing $260 billion annually to water insecurity, like paying for a swimming pool but getting a leaky bucket instead.

But fear not! Amidst these watery woes lie opportunities for companies in the water sector, akin to finding treasure in a sea of challenges. From innovative water management solutions to regulatory tailwinds, it's a bit like finding a lifebuoy in the middle of a storm.

Our primer dives deep into companies poised for outperformance, spanning metering, testing, advanced treatment solutions, tailored water-as-a-service, water infrastructure, data centers, and semiconductor fabs. We're standing at the confluence of necessity and technology, where mundane solutions offer revolutionary investment opportunities in water, like discovering a pearl in an oyster.

But fear not, fellow investors! We're not just throwing darts blindly at a board covered in water droplets. We meticulously construct our basket, carefully excluding companies in troubled waters financially and those at risk of sinking. This isn't about hoarding Evian or treating water like liquid gold; it's about grounded, actionable investment strategies that won't leave you feeling like a fish out of water.