The Best Investments for the Future – Water, Grains, and Energy

When Warren Buffet bought Gillette, he believed that every day, a billion people or more around the world are shaving and regardless of what happens on the internet and technology, people will still need to shave. The man had a point.

Looking ahead, yes, perhaps robots will be a part of the future and perhaps not, who knows? Maybe autonomous cars will dominate the transportation and… maybe not. In a way, that’s a gamble and it’s a wise gamble to invest in artificial intelligence (AI), autonomous cars, and the blockchain technology.

Yet, these are not essential products for human existence. Water, grains, food, clothes, heating and cooling (energy) are essential for human survival. And ss humans evolve, so are their basic needs. A mobile device, for example, has become an essential product and if something happens to my laptop…

Anyway, we have decided to take this article into another direction. No slogans, no promises of the investment of your life. Let’s take Buffet’s idea – every day, eight billion people and even more in the future are using and will continue using water, grains, and energy. So here three fields every person should consider investing in.

Best Investments for the Future

Here are some of the best long-term investments:

Water!

Investing in water might sound like an investment with a bad intention. Almost as if you profit when others remain waterless or if water prices rise. But what if we could have 5%-%10 of seawater desalinated? Wouldn’t it be useful for the survival of humans? Some water projects can be beneficial for humanity and solve one of the most ancient concerns of the human species.

There are some seawater leading companies to invest in, and you can also invest in water exchange-traded funds (ETFs):

Here are the top 5 Water ETFs and Funds in 2024

• Invesco Water Resources ETF (PHO)
• First Trust Water ETF (FIW)
• Tortoise Global Water ESG Fund (TBLU)
• PowerShares Global Water Portfolio ETF (PIO)
• Invesco S&P Global Water Index ETF (CGW)

Grains/Food

As part of my previous experience as a grains day trader, one of my managers once told my team that there are records since the 15th century of scientists and farmers who claimed, each one in its own period, that in a hundred years there will be a shortage of food. And yet, humans succeeded to overcome the overgrowing increase in population, extreme political turmoils, and different climate conditions. It seems that the human mind and advanced technology can always provide a solution to the concern of food shortage.

Even today, grains (and softs) remain the most necessary commodity. Corn, wheat, rice, soybean and more are being used to feed livestock, to produce cooking oils, fuels (ethanol), cosmetics, alcohols and, of course, for human consumption.

Luckily, investing in grains is quite simple. First, you can always purchase grain futures through the Chicago Mercantile Exchange (CME), though these contracts were designed to protect farmers and manufacturers from unexpected weather conditions and to provide a global solution for grain trading. Therefore, it is not recommended to invest in grain futures unless you are a day trader.

If you are keen to invest in grain futures, note that the initial margin and the commissions charged through futures exchanges are relatively high. An easier option is to buy grains’ Contract for Difference (CFDs), which enables two parties to enter into an agreement to trade on a certain instrument and speculate on the asset’s price movement without owning the instrument. You can read our guide about CFDs to learn more.

Another option is to buy grains ETFs. We have selected some of the best grains ETFs as of 2024:

• MLCX Grains ETN (GRU)
• iPath Bloomberg Grains Subindex (NYSEMKT:JJGTF)
• WisdomTree Grains (LSE:AGGP.L)

Energy/Renewable Energy

When it comes to energy, you have to choose whether you believe that renewable energy will replace the current energy resources such as oil, natural gas, and coal.

Regardless, humans won’t stop using electricity, cars, and airplanes, and global productivity has an essential need for energy resources. It is hard to say that renewable energy can completely replace current energy sources, and some believe that humankind should rely on more than one source of energy. Renewable energy, in particular Solar energy, has some disadvantages that have yet to be solved.

Anyone can invest easily in traditional energy companies such as Exxon Mobil Corporation NYSE: XOM, Royal Dutch Shell NYSE: RDS.A, RDS.B, Chevron Corporation NYSE: CVX, BP NYSE: BP.

Another way is to invest in energy ETFs. You can find some of the best energy ETFs on this page.

For those who prefer to invest in renewable and clean energy, here are some of the best ETFs:

• Invesco Solar ETF (NYSE:TAN)
• Global X YieldCo & Renewable Energy Income ETF (NASDAQ:YLCO)
• Invesco DB Energy Fund (NYSEARCA:XMVM)
• iShares Global Clean Energy (NASDAQ: ICLN)
• First Trust NASDAQ Clean Edge Green Energy Index (NASDAQ:QCLN)

Summary

To sum up, making long-term investments is something that requires research and a fundamental understanding of human needs. Clearly, there’s more than one way to invest for the future. For instance, some might argue that the S&P 500 is biased to rise forever, which makes it a fairly safe and easy way to invest for the long-term.

However, if you wish to invest in earth’s natural resources that are usable at any time – then water, grain, and renewable energy might be the best long-term investment you can make.