Warren Buffett and Charlie Munger have admitted that it is more difficult to make money in the stock market today because of increased competition among investors, aka there being more investors than there used to be.
One of the industries I’m focusses on right now is green tech; however, it is apparent that I’m not the only one — it’s difficult to find stocks in green tech that aren’t overvalued and this is the bear market we’re in let alone if we were to see a continuation of the bull market.
My favorite green tech stock since 2021 has been Enphase. Enphase lost over 50% of its value over the last 6 months. Some might be reluctant to put money on it now at $163.73 because they worry it may fall further. I have spent time investigating other green tech stocks to compare it with and the results were surprisingly positive for Enphase.
Two of Enphase’s nearest competitors — SolarEdge and FirstSolar — didn’t sell off over the last 6 months along with Enphase; they continued to rise. One of the reasons for this is that they had more favorable evaluations previously compared to Enphase. Another reason is that they had lower market caps. But all three renewable energy stocks now sit with a forward P/E ratio of around 20, meaning they are all similarly priced for the same amount of risk. But I would much prefer owning Enphase to the other two because Enphase has sold off/corrected already and because Enphase has far more positive sentiment in the community than the others.
For the near term, Enphase likely bottomed at $153 and now sits at $163. Yesterday CNB reported that Steven Cohen was bullish on the market. I recently reported that Inside transactions were up for Enphase.
Other green tech I’m interested in is the EV sector but you ought to be careful which car companies you invest in until the bear market is over.
See also: My Hope in Arrival Wanes the Longer This Bear Market Continues