Easy Money

Assalamu alaikum everyone. I hope you are doing well. We have a short presentation today. We were busy counting our profits from iris energy. But we have a useful presentation for you inshaAllah. Obviously, the goal here on this channel is to make investing as easy and profitable and ethical as possible. And so, in this live, I'm going to go over some highlights from a review of a report that recently came out from the International Energy Agency talking about the state of investing in renewable energy because I found the report quite interesting and quite directive in terms of where I should be focusing my attention in terms of looking for the next iris energy or the next multibagger for PIF. And hopefully, this helps you with your own investing strategy. So, without further ado, let's get started. This is not financial advice. This is my thinking and what I am going to do. Obviously, be sure to do your own due diligence before you make any investing decisions. My goals are not necessarily yours. If you do enjoy these videos, by the way, do leave a like really helps out the channel, helps other people see these videos and hopefully benefit from them as well. All right. So, some highlights from the recent energy agency's report is that energy investment is to exceed$3 trillion for the first time in history in 2024. Now, $2 trillion of that is going towards renewables, electric vehicles, nuclear power, storage, grids, low emission fuels, efficiency improvement, and heat pumps. And only $1 trillion is going towards oil, gas, and coal. And so, the investments in renewables are 2X the investments in oil and gas. And if someone were to ask me, hey, I have investments in oil and gas that I've set aside for the long term, I would say you may want to rethink that strategy. Because I do think that these are areas that are going to receive less and less attention from investment dollars moving forward. So, oil may be oil more than gas, but oil may be a trade, but as a long term investment, you may want to be cautious before you set it and forget it in your portfolio. Following chart shows you the growth in investment annually in clean energy by selected country and region. So, you can see China went from around$5 billion annually to close to $900 billion between 2019 and 2024. The United States had growth from around $400 billion to around $500 billion. The European Union had more growth on a percentage basis. So, going from around $250 billion to around$450 billion. And India and Latin America followed the same trend. Southeast Asia and Africa are lagging the world in terms of their transition to clean energy. So, one of the story here is that if you can find plays in these hot areas for clean energy, if you can find best of breed in these areas, the ones that we mentioned, grid, nuclear and efficiency heat pumps, if you can find best of breed players in those areas, then I think you'll do quite well. Now, also noteworthy in this report is the fact that solar accounts for more than all the other technologies. So, if you look at this chart, you can see solar is in the turquoise, the light blue color, and then all the other technologies are in the darker blue. So, you can see that in 2021 it was less than the other technologies. And 2022 gained ground and 2023 actually exceeded and in 2024, the same is true. So, solar is accounting for more than all of the other technologies. And this is something that I mentioned on this channel many times that I thought solar was going to play the, or occupy the lion's share in terms of renewable energy moving forward. And this makes sense, right? Our planet has been since its beginning powered by solar energy. And it is, and even indirectly, I mean fossil fuels, I mean, they are an indirect harvesting of the solar energy. But it makes sense with the technological progress that has been able to be achieved in harnessing the power of the sun directly, that humanity moves towards this. And it's something that is, you know, regardless of region, you're able to do this if you have the means for storage. So, that's another sort of area of investing, sort of storing energy and moving energy from place to place. So, if you have one place that is sunnier than the other, if you're able to move your electricity from one place to the other, move in energy and store it from one place to the other, so the infrastructure for all of this power, transmission and storage and generation, all of this is going to be in high demand, especially as it relates to connecting with solar power. So, this was something that is that a smart investor will look at and say, hey, there's a lot of opportunity here. And again, I wouldn't go at first order implications of this. I would go at second order and third order implications. So, for example, solar panels, investing in solar panels, may not be the best idea solar panels to a large extent have become really commodities at this point. The margins are getting thinner and thinner. However, technologies associated with solar panels, for example, micro inverters, may be a good play here. And other second and third order derivative plays will probably yield better returns than, you know, directly investing in, for example, solar panels. And this is another chart which I think is very informative for investors. So, you can see in the light blue, the investment change in these different areas between 2023 and 2024. And in dark blue, the average annual change in investment that needs to be achieved in order to reach net zero emissions, the net zero emissions goal. So, this is the average annual change that needs to happen between 2023 and 2030. And so you can see in transport that dark bar is, is, you know, quite long in buildings. So increasing the building efficiency, energy efficiency of buildings. You can see how much investing is required in that space. So, if you can find a good player in that space, making buildings more energy efficient, I think that's going to have really good results. Clean power, grids, battery storage, these are all areas that are requiring additional, even on top of the increase in spending, additional increases in spending in the next few years. And so, finding best of breed players here, I think, is an exercise worthy of our time. So to wrap things up here. So obviously clean energy investment is surging. Oil can be a trade, not an investment. Solar power is leading the charge here. And I'm really taking a lot of time looking for different plays here. Promising areas of investment include nuclear. This is something that we don't have in our portfolios yet, but we are looking at potential candidates, a grid building out the grid. Building efficiency is another unique idea that I think is flying under the radars of many and transport. Obviously, we have a big play there. And if you're able to find decent companies in these spaces, you'll do well. I mean, investing, as I always say, is really a matter of common sense and temperament. It's not that complicated. The idea here is that to do well, you basically just have to follow an industry that is growing rapidly. And as we saw, renewable energy is growing rapidly. The dollars that are being poured into the space is growing rapidly year after year and they're projected to grow, continue to grow rapidly for the foreseeable future. Once you find an industry like that, that's growing at a fast pace, all you need to do is find a good company in that industry. And then it becomes hard not to do well as an investor. So hopefully this live gets the juices flowing for you, obviously at PIF, we're always looking for additional opportunities to invest in these types of analyses of market trends, helps us or directs us in the right direction in terms of where we search for opportunity. So with that, I'll take questions very quickly. All right, thank you for sharing our videos with your friends. Yeah, so while he's saying, I think the industry will struggle as long as interest rates are high, certainly I think that a reduction in rates will improve the performance of the industry. But there are a number of players that have already been doing very well, which I have been looking at recently. So even despite the interest rate environment, they have been doing very well. And I think a more favorable interest rate environment to your point will only pour more accelerant on their progress. All right, guys, like I said, if you do enjoy these live lives, leave a like, subscribe, hit the notification bell so you know when we go live next. Until next time, make sure to take care of yourself and that's all I call. Peace be upon you all.