Brookfield Renewable (TSX:BEP.UN)(NYSE:BEP) is my top stock for the next 30 years. Few businesses have this bright of a future.
The best long-term stocks have great management, but they also benefit from strong secular tailwinds. A rising tide can lift all boats, and Brookfield has a truly massive tide headed its way.
Once in a lifetime opportunity
There aren’t many tidal wave stocks. These are rare opportunities that capitalize on generational events. Big oil was one such event. The rise of the internet was another. Right now, we’re in the midst of what could be the biggest opportunity this century: the green revolution.
Let’s look at the numbers. In the past five years, roughly $1.5 trillion was invested worldwide to build renewable energy infrastructure. That’s already a sizeable market, but it’s ready to explode. Over the next five years, investment is expected to surpass $5 trillion. The five-year period after that should compound to an even larger scale.
“For the first time since WWII we sense a shift in which climate and the environment — not growth — will become the priority of governments and their citizens, as shortages of food, clean water and air become existential questions,” predicts the chief economist at Saxo Bank, Steen Jakobsen. “Governments will increase investments and subsidies for ‘green’ industries, starting a new mega trend in equity markets.”
Jakobsen thinks green stocks are your best bet for the uncertain future ahead.
“We believe that these green stocks could, over time, become some of the world’s most valuable companies — even eclipsing the current technology monopolies as regulation accelerates during the coming decade,” Jakobsen concludes. “Investors should consider tilting their portfolios toward green stocks so they don’t miss this long-term opportunity.”
This stock is your best bet
Want to bet on the green revolution? Brookfield Renewable (TSX:BEP.UN)(NYSE:BEP) is the stock for you. This really is a one-stop-shop for diversified exposure across dozens of clean tech opportunities.
Already, Brookfield operates one of the largest green energy portfolios in the world. It owns wind, solar, hydro, and battery assets in several continents. Its team invests around the world and across the value chain, buying mature assets when prices are right, but not shying away from snapping up distressed assets when the reward opportunities are sizable.
In a nutshell, buying this stock is like trusting your money with some of the best green energy investors in the world. Despite the fact that investment in renewables is just starting to go asymptotic, Brookfield shares have delivered double-digit annual returns since 2000. It has a proven resume and a very bright future.
“Every now and then, this area of the market gets disrupted,” I recently stressed. “These are rare opportunities to profit from a global transition. Right now, we’re just beginning a multi-decade switch to renewable power.”
To be sure, we’ll be burning fossil fuels for decades to come. But demand for oil, coal, and natural gas will slowly give way to the rise of renewables. Brookfield stock is perfectly positioned to become a major player in this burgeoning market.
If you want to bet on green stocks, Tesla may be your best bet...
Before you consider Tesla, you may want to hear this.
Motley Fool Canadian Chief Investment Advisor, Iain Butler, and his Stock Advisor Canada team just revealed what they believe are the 10 best stocks for investors to buy right now... and Tesla wasn't one of them.
The online investing service they've run since 2013, Motley Fool Stock Advisor Canada, has beaten the stock market by over 3X. And right now, they think there are 10 stocks that are better buys.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Ryan Vanzo has no position in any stocks mentioned.