Putting your money to work for you is a great way to enhance your wealth over time. Rather than letting your savings slowly grow in a low-interest bank account, you might consider being a little more proactive with your funds. Taking advantage of exciting new investment opportunities is a great way to grow your wealth, but as with most things in life, a greater potential reward usually comes with a higher risk. In order to minimize your risk when investing your money, you should consider adopting some tried and true strategies when it comes to selecting your investments.
One strategy that has proven successful is known as the ‘picks and shovels’ strategy. This strategy is based on the notion that rather than chasing gold buried in the ground, you can make more money selling the picks and shovels to others looking for that buried treasure. In the case of emerging technologies, this strategy encourages investors to take a more creative approach to choosing where they want to spend their money.
One emerging technology that relates to this investment strategy is the electric vehicle industry. Over the past few years, the number of battery-powered cars on the road has continued to grow, and there is no sign this trend is going to slow down anytime soon. Initially, this may encourage some investors to start putting their money into electric car manufacturers, or into the development of the lithium-ion batteries that power those vehicles.
You may even think about investing in the raw materials used to make these batteries, such as lithium itself or even cobalt. As the industry continues to grow, all of these investment opportunities could lead to lucrative returns over time, but a pick-and-shovel approach in an emerging industry like this can potentially take your investments to a whole new level.
EV Charging Stations
In the case of electric vehicles, investing in the electric car charging stations associated with battery-powered technology represents a textbook example of the pick-and-shovel approach. The question then becomes whether this approach is the most beneficial for investors. The thing to keep in mind when deciding which EV charging station companies to bet on for the future is the level of competition that exists in this industry.
There are a great deal of EV charging station manufacturers out there today, all of whom are vying to be the largest provider of charging stations. At this time, a company called Charge Point is claiming to be the worlds leader with nearly 50,000 charging stations worldwide. There are plenty of other companies seeking to create relationships with other companies that will help them expand their business to compete with Charge Point.
Investing in emerging industries is often a good approach, but one that carries a significant risk when deciding which company gives you the best chance at making a profit. Currently, the EV charging station industry features plenty of growth and competition, which means investors looking to take a pick-and-shovel approach will have their work cut out for them.
EV charging stations will continue to emerge all over the world as more battery-powered cars find their way onto the road, but it is important to seek out a charging station company that has managed to keep up with this growth over the years. Annual revenues generated by product sales are a good indicator of an EV charging station company’s performance against the competition. Determining which company keeps growing in this area compared to those that see a loss in this category will give you a solid idea about the best place to make your investment.
For additional information about other emerging trends and technologies in the green energy sector, be sure to check out Rikur Energy’s website today!
Brad is proud to be of First Nation’s descent with ancestry traced back to the Manitoba Red River Band. With over 20 years’ experience in the construction industry, Brad offers an extensive background of project procurement in industries from agriculture, electrical distribution to commercial construction. Brad is a NABCEP certified professional with a thirst for ongoing education in the renewable field.