July 24, 2019
You might think that General Electric is the perfect stock to own as the electricity grid shifts toward solar and other renewable energy sources. And with the electric vehicle movement cranking up, shouldn’t GE be the one sure bet?
General Electric sold its soul several years ago. It is now a gigantic oil and natural gas services firm. GE basically placed its bet on gas when it bought Baker Hughes. It owned a division that was building lithium battery locomotives for the train market, but GE just sold it.
It has a renewable energy division, but as it is playing catch-up, it continues to record losses in the hundred of millions. Renewables are not a focus at GE.
Anything not associated with the gas turbine market or aviation is not GE’s core business, and it is looking to get out. So no. Do not think of GE when you think of ways to invest in renewable energy stocks.
If you want to own one of the largest companies in the world that is similar to GE in its historical focus, buy Siemens of Germany. You can buy the ADR’s here in the US under the ticker symbol “SIEGY”. I’ve begun buying shares below $50 in the last few days (Its August 12th, 2019 as I write).
Siemens is fully committed to the renewable energy market, and it realized several years ago that the way forward is by investing in renewable energy technology. If you want to own a fantastic stock that has hundreds of millions invested in renewable energy, forget about GE. Just go buy Siemens. And don’t sell it. Just buy it when you can, and tuck it away.
As for timing, the smart money guys are selling Europe en masse as it looks like the area is rolling into a recessionary period, but do yourself a favor. If you want to own only one company that is involved with renewable energy on a global scale, buy Siemens right now, while it is being sold with everything else Europe-related. Period. End of story.