Investors looking to get rich in the next decade should look to disruptive industries, especially those in the so-called green economy. In every sector, innovative investment opportunities abound and are brimming with upside potential.
With some of the sturdiest asset classes, namely utilities, banking, and real estate, about to get a makeover, growth investors have some rich pickings to mull over. Space industry, the green energy revolution, and even alternative finance and “climigration” could see visionary investors claim some high rewards in the future.
The green economy is rich with upside potential
The green economy is perhaps the most predictable of these four disruptive investments segments for two reasons. First of all, it’s already happening, and investors are already seeing returns. Secondly, it’s visible: from wind farms to Impossible Burgers, the effects of the green economy are tangible, and many investors already make use of this disruptive global mega-trend.
Whether it’s alternative protein or alternative energy sources, the green economy is ripe for upside. Growth investors with an eye on renewables have a number of different ways to gain exposure, though — it’s not just about solar panels and offshore wind farms.
As per the U.N. Environment Program emissions gap report: “Deep and rapid decarbonization processes imply fundamental structural changes are needed within economic sectors, firms, labour markets and trade patterns. By necessity, this will see profound change in how energy, food and other material-intensive services are demanded and provided by governments, businesses and markets.”
However, if investors want to keep it relatively simple and still earn passive income, Northland Power (TSX:NPI) is a good place to start. The clean-energy company holds a range of green-power assets, making it a strong play for diversification. And speaking of wind farms, Northland has a controlling stake in the Gemini Offshore Wind Park, one of the three largest of its kind anywhere in the world.
Diversification is key, though, when buying into a single business or a few companies within the same industry. New green-economy investors should look for companies with a spread of energy assets. While Vermilion Energy and Enbridge have richer yields, their areas of business are arguably less diversified than Northland’s. With a 4.36% yield, though, Northland is still suitably tasty.
Northland’s clean-power assets span an impressive range of thermal, solar, and wind energy sources. They also tap directly into what is one of the most potentially profound trends of the century: the green power revolution — a worldwide growth trend that could provide mountains of upside for investors.
In addition to its involvement with European wind energy assets, Northland has also recently formed an agreement for a joint venture with Japan’s Shizen Energy. The two companies will partner up on offshore wind farming projects, further increasing Northland’s geographical diversification.
The bottom line
From the whole range of space industries that could come online in the 2020s to the green economy covering everything from meat-free proteins to energy-efficient buildings, the decade could reward capital gains investors with massive growth potential.
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Fool contributor Victoria Hetherington has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge.