 Hi guys, Anthony here. I hope you're doing well Just wanted to give you a different type of video from the Amphi live community and that on investing in green energy Things like solar wind electronic vehicles. These are all really hot topics at present And as such then we wanted to give you a bit of an insight as to how we would go about Composing a basket of different ETFs single-stop equities and how to basically Expressive view and the timings and landscape of what green energy investing is all about So no one else better to do this than one of my colleagues senior trader Tim Duggan Who will talk you through a session that we shot earlier this week. I hope you enjoy it one of the core questions in the room here is You know Tim looking at Spending a stimulus check. What would you what would your thoughts be on longer-term investing? In the green energy plan renewable energy and so on so forth And so I thought it'd be good to just record a little bit of of my you know my thoughts on this and what we're seeing so Let's get into it. So essentially it's kind of tiered in a way and this is really good for me to actually Also flesh out my my thinking on this and you know, we've got Really it's future energy So really what have we got? We've got we've got renewables Look at renewables, right? Renewables and within that we've got like solar tech We've got grid. Oh We've got or let's say smart grid We've got Probably materials Materials is like, you know photovoltaic Photo V You know solar paneling So let's just say solar materials And Yeah, you know, then you go into like winds You go into hydro and something else that's coming out of this is Something is uranium and to a smaller degree gas Right. And so, you know, this is the whole picture of the clean tech You know renewables and clean tech but You know, we can it's natural for us to think. Oh, well, right clean tech in Combustion engines out, right? It's very easy to kind of just take that position of thinking but It's it's you're not serving yourself too well if you do that because essentially These are minnows. Oh, most of the companies that are in like That I have here, you know, these are all minnows like smart grid. These are startups effectively in a way and you know, maybe SME enterprises and And they're doing great stuff. They're getting and they're getting They're getting bigger and bigger investment and they're obviously now with the green energy plan there They are going to come out of that minnows or status and the background and the shadows and really start to over the next 20 to 50 years. I mean These companies will be the dominant players in what has been a traditional energy picture You know That is like say hydrocarbons Oil like that. Yeah, let's not make it. That's not fancy it up. Right. Let's just call it like oil oil and gas and coal right and In here you've got, you know, you've got like The big players like BP shell Exxon Now these guys are these guys are pretty much the top two are fully integrated These are fully integrated companies, which means they own the entire stream Right, so that means that BP They they do the exploration and production As in they find it drill it Ship it to shore they refine it and they retell it. That's called fully vertically integrated as an oil company and the and to a certain degree Exxon Exxon actually is is fully integrated as well so Like this real easy here Yeah, so now how many of these companies on the left are or can be fully integrated producers to to to marketplace commercial or consumer grade sellers of their products as In a wind farm that gen that that that makes the turbine Puts up the turbine Generates the energy from the turbine and retails it to your house There aren't many there. There probably are a few and they're their market exposure is probably quite limited when you look at the these absolute, you know Like planet-sized companies, I mean each one of these companies here are bigger than most global governments and That's hard for people to realize but they are and they sway more influence than you know Like the US administration, for example Has sort of less global impact than the company like Exxon or Shell And people think well, that's a bit conspiracy Conspiracy or Toriel to think like that Tim, but believe me I've read enough and researched enough and worked in this industry and that is just a fact and If you think that that's conspiratorial thing to say I'm afraid you haven't read enough about this topic and about these these industries And it's very naive to actually Poo-poo that idea So these are very very very big corporations the biggest right and they sway the most power I can recommend some books if people are interested in reading about that, but the point being here is this is not a binary Zero-sum game whereby essentially there's one loser and there's one winner BP are already ditched on their renewal are on their on their oil and gas EMP They're getting out of refining refining Exxon sticking it out there to the end game For sure, but BP are already transitioning to a lot of this a lot of this a friend of mine in Shell is the head of transition to a lot of this right and These guys have more cash available and will be investing in snapping up all of these elements over time So what you could do is how do we invest in this Tim? All right, how do we invest in this well? There's two ways you can invest in and believe in the transitioning of these marquee companies from their fully integrated Abilities to then transition that to smart clean renewable tech so on so forth you can believe in that and invest in that and Sure, I mean, I'm suffering. I'm probably at a loss of maybe $30 per share by investing in BP On the damn move last year as opposed to Shell or Exxon they are trading at about a $30 premium to BP Because of the price of oil right now, but oh that investment I made is 35 to 10 year investment You know, and you can't you know, I can't buy them all and at the level I want to want to invest in this but I feel comfortable and BP I bad earnings last earnings But you know, don't care bad full year earnings. I don't really care So you can buy BP Shell or Exxon And you know the story of of who will be around in 2030 40 50 years time and more importantly Who will be the major player in this area? Are we going to see a wind or a hydro company rise to the ranks of One of these companies on its own. No, they're just going to get bought out And but the point being is that how to play this investment is there are in this you can invest in, you know Let's let's kind of create a Where where to look Right, I'm not I'm not an investment advisor and this is informational purposes only so I have to caveat that but In in looking at this well, we could we've got green energy and the sub sectors I have below there are ETFs That cover, you know wind Solar Photovoltaics There are let's see renewable energy ETFs that are baskets of all of the companies that have described the both here, right And so I like the ETF story. I mean this isn't we're not even getting we're not even touching on The the topic of electronic vehicles there. I mean, we're not, you know, that's a whole sub sector in this conversation And that we have to do another session on to be honest Which I'm investing in for all due diligence purposes And so you can look at playing ETFs and you can look at playing stocks So he's got you know ETFs if you've got individual stocks, right? um, you've got your I don't actually have a lot of the name a lot of the individual equity names within these within these Breakdowns, but you know, you can find that information out very easily. Um, very easily, you know, so individual stocks You have ETFs individual stocks And then within those you can play options. You can own outright I would not do any of this stuff leveraged at all Do not do that would be my advice, you know, um, but adding into this you also have um You know the traditional names traditional energy And you know, you got your just you can buy BP shares, right? dividends Shell dividends you know DTFs aren't going to be paying dividends. They are a little more tax efficient. You know the individual stocks um Is pretty much this part, right? So you can have essentially then when it comes to portfolio construction You can have uh, you know, you want to so the portfolio construction Would consist of something similar to this, right? Um, you would say, okay, I want a couple of race forces, you know, what With any portfolio you kind of say What are the what are my race forces now? This is just a personal Analogy, but that I like to have What are my race forces and what are my turtles? okay, well You're starting to get a picture here guys and girls, aren't you? Well, my race forces are that really small uh Sorry, let's say solar solar Like acme solar, right Acme is a word for you know, abc xyz company acme solar, right? So hot you what you want is to explain This is basically actually i i e um high growth High growth, right and and the and the turtles are your steady steady natties Was it any ddy? Right steady natties. And you know, this is going to be your vp's shells axons Etc. Etc. The high the race the race forces, you know paa for example Paa the the race forces are going to be the speculative companies the ones that are breaking new ground Putting in new smart grids Like high growth, for example, will be tested Right, that's a race force. Um, I have an etf Uh called hail uh hail There's another etf, uh called iDrive Oh i d r v and these are all electronic electronic vehicles Let's go Right, these are electronic vehicle etfs, but this is the portfolio construction, right? And so we do want to race forces. We do want our turtles and we and we we believe in the general growth over time of the entire sector So it's more thematic, right? What this portfolio would be it would be based on a thematic investment, right? Um, that's how you would call this Um, so you're you're betting on green energy And then, you know, I mean, maybe you have a portion your sector of the this is your ev sector of the overall green portfolio, right? And then, you know, you put more race forces in here like uh neo is it well neo is another ev I mean, I'm pretty hot on ev right now So neo is another one, right? Um, it's a tiny it's basically the asian version of tesla um You know, but what else? I mean, you'd have to go and find, you know, I might ask Shelby to find some of these companies for In this, you know Here who are the winners and losers up here, right? You know, and you have to track once you have a couple of interesting names You kind of got to track them for Like maybe at least a quarter kind of see how they react to certain shifts in the economy and the macro environmental news picture see how they they respond to certain things You know, are they overbought? Do you want to put on alerts to buy them when they fall to a certain level? I mean, I I think a lot of this stuff is horrendously overbought right now And actually since three months before Biden was elected These things have been going up like at parabolic rates. No job parabolic straight up. So I do like I want to have You know, most of these in the in a portfolio, but I'm constructing really at the moment I'm constructing the the The ev part, right? I've done this already on the evs. I might actually take a bit of overweight myself to neo actually soon enough and I'll certainly put test in there if I get If I if I get like 400 on test that boom, I'll buy more of that and then I'll over. I'll be over waiting myself Here I like hail because it's oh, it's actually hail is actually overweight Neo and underweight test that right, but I want a bit of exposure to test that 400 because I think that's good value Right, but there are individual names within this and you need to think right well Which one they're all pretty much racehorses, but which are the real third reds in here And which are the ones that yeah, they're going to come in somewhere in the middle of the pack Um, but generally they're going to appreciate over time But all the while you cannot discount these companies that are literally bigger than the government that has told you to stay inside for the last year And they are going to be buying up Any of the any of the good value racehorses that come past the winning post if you like, right? So this is kind of just a smattering of portfolio construction and how I look at the green energy space that's coming Um, you it is important that if you're putting a lot of money at play over Over an undefined time horizon that you get paid get paid dividends Right get paid dividends the banks aren't giving you anything on your money on deposit Why not just put it into something that's paying you to pay you a dividend and all the while then as your overall portfolio And appreciates over time You're then making dividends on on on the sort of the bonds if you like of this portfolio You know the resources and the turtles the turtles are essentially like, you know, these are like equities, right? And these are like, you know the bonds Right cool A couple of questions in yeah in the books, right the books, um So the energy picture Oh One of it on there Where's my I'll take my wife board up. All right. So another one of the one of them, you know, get an image and drag it in So the first is the prize by Daniel the urban now. This is This is a big book um This is a huge book It's you could kill a man with this book. It is literally Something you could probably put, you know, your car up on If you needed to, you know, do some work underneath it It's a biggie But essentially Daniel Juergen is the world's foremost authority on the oil industry to be honest He won a Pulitzer prize The guy whatever what the guy doesn't know about oil It doesn't matter, right It doesn't matter. It's a thick book, but it's it's interesting and it's well worth Well worth it. He actually has a new book called well, I won't get it out because it's equally as big but uh calls the new The new ones at the new world um Uh, the new order the new order of energy Yeah, it's called the new order and it's really about the new order of energy, right? And I can't wait to read it because there's going to be more insights into what the future is for a lot of these companies That he's tracked their developments for the last, you know, since they were were developed like, you know shell. I mean Samuel Samuel started shell In what was it nine eight 18? 18 in the 1840s, I think 1840 selling selling shells from the far east as trinkets of of of um interest londoners and that business took off wildly and then you got into trading food like rice and flower and corn and then it developed that business into then trading oil on a global level from all from london and that's that that's why shell is called shell essentially Because the company started off selling boxes covered in Lovely pretty shells from from tropical waters in the far east so Daniel Juergen the prize another one is expressions of an economic hit man So this is actually a fantastic book This will really open your eyes up to how global governments and global economics actually works and so john perkins was a consultant a government economic consultant for the man group and a couple of other companies that Have been at the at the center of a lot of controversy for the last 50 years actually when it comes to funding projects in developing countries This this information in here about the deal over the sewers canal over the Panama canal and what the government how the government's approach try the US government in particular and tries to buy influence over the development of these type of projects that are of you know global interest So these are my book recommendations for today for my monday recommendations. I'll put the links to them in the room and Yeah, that's about it. So Uranium yeah Stay fine i'm actually not up on the uranium thread of this story and i'm i'm just really at the at the start of Developing my own knowledge about the uranium relevance in this space. It is it basically it's a clean Way of producing energy, but obviously from the Fukushima incident We've seen that you know these nuclear volatile products have Have, you know tremendous and tragic impact and fallout and you know, I don't need to go on about the The Chernobyl incident You know that's well documented That's why we have radon barriers in any houses that we build now because essentially there is radiation that was from the fallout of Chernobyl in the 80s that spread across most of most of europe actually and that radioactive material Fell down into into the ground into the earth and then there is a certain Raised radiation exposure that comes from that from from the ground down and that's that's just a fact So if you you're not actually I don't think you're allowed to build a house and Technically in the european union without a radon barrier on on the on the floor So Yeah, sorry say pain I'd have to brush up on that to be able to talk about it In any capacity really so i'm not going to just jump in there on that conversation So yeah, hopefully this is some interest and some Some insight into How I see How I see attacking this You know what we see is You know the movement to green energy and just to footnote this, you know We do have you know, how how what is the catalyst for you know, what has been here This future of energy has been, you know Sort of a nascent industry for quite some time, you know, trying to find funding trying to find development. Well We know what the what the catalyst is now biden dollars and green stimulus some you Sillius dollars, right? So That's the catalyst. That's why we're going to see a shift a huge huge shift To you know this all of this stuff here and To do something like this All right Thanks folks