For our homes, we choose energy efficiency whenever possible, believing it saves money on our bills over the long-term. We trust that new advances in energy technology are the right choice. Can the same be said of investing in energy companies? About 51% of Americans think that using nuclear energy to produce electrical power is a step in the right direction. Might we see an increase in nuclear energy stocks in the near future?
The average person is not familiar with how electricity can be produced from nuclear energy. It is actually a simple explanation, if a complicated process: an atom is split into two, lighter atoms. The energy released once the atom becomes two is harnessed for electrical energy needs. Nuclear energy plants actually supply about 11% of the world’s electrical energy. Interestingly, this amount is more than all fossil fuels combined produced in 1960.
Investing in energy companies is a good idea for a few reasons. The first is that energy is a constant requirement. Examples include the fossil fuels used to make gasoline for cars, airplanes, etc; the solar panels on some homes and businesses; and of course, the electricity that powers our buildings. The question becomes, should you consider investing in nuclear energy stocks companies, and if so, is it a “safer” bet than other forms of energy?
A big consideration when analyzing which stocks to invest your money in is future growth. Many people fantasize about finding the next big thing at its earliest stages, investing, and then reaping the rewards when the product or service rapidly gains popularity. This exact scenario does happen, but not often, and not to many. It is better to look at what has a very strong chance of slow, steady growth and taking that path instead.
The benefits of nuclear energy over other fossil fuels are mainly about cost. While building the laboratory is expensive, it actually costs less money to run it. Electricity made from nuclear energy is less to produce than it is from fossil fuels. It also is cleaner to produce.
Investing in energy companies is a safe choice. Investing in nuclear energy could be construed as a risky choice, simply because no one knows for sure what will be the next big trend, whether in consumerism or consumables. The solution is to have a diversified portfolio of stocks.
