hey guys how's it going it's Andy from Magoo investing happy Monday so I decided to put this
video off for a couple days specifically because I didn't want to be insensitive to the people that
are having problems with all the power outages in places like Texas I live up in Portland and in
the past week we've had some power problems in the same way not obviously not as bad because Portland
is a little better at handling the cold weather because we do get snow about once a year but
I think for a decent amount of last week people didn't have power and I don't want this to be a
political video at all the reasoning behind why I decided to buy more renewable energy
stocks was definitely an emotional response but it's because we've seen the need for changes
to the infrastructure of the united states and across the world so I bought two new renewable
energy stocks and that's going to be the topic of today's videos I’m going to be explaining my full
renewable energy portfolio I’m going to be talking about some of these science and use my grad degree
in science and education to kind of explain the reasoning behind why this type of cold weather is
not going to be uncommon it is often described as a once in a hundred year storm but if you've been
paying attention we've been having you know once in a hundred year floods like every couple years
and it's only going to be getting worse so I’m going to be talking about some of the doom and
gloom some of the science about the reason why we need to invest in renewable energies then
I’m going to be talking about these stocks that I bought and then I’m going to be talking about the
outlook going forward because as of right now a lot of the energy stocks are getting hit and
they're actually the reason why my portfolio is down this week but I think the long term
outlook on renewable energy stocks are fantastic and I do see this as a buying opportunity so when
we got about eight inches of snow in Portland pretty much everything's shut down we get
like one big snowstorm a year and it shuts everything down and the reason behind that is I’ll
put up the topography map of Portland is there's a lot of hills we don't have the infrastructure to
get rid of all the snow so it shuts down for a while but snow is not uncommon but if you remember
in 2020 we've had a lot of very crazy weather events and these are not uncommon so I just kind
of wanted to go over some of the things to refresh your memory because 2020 was crazy obviously we
had the pandemic in Oregon we had record wildfires that made it so that we had an air quality index
or an AQI of 477 in Portland and in bend which is just a couple hours east of me it was 500.
And 500 is the upper edge of the this scale for air quality so you know things are bad when you've
hit the max of a scale that in theory should never be hit we had record flooding this past year we
had a record year for hurricanes and we the first recorded double hurricane in the gulf of Mexico so
pretty crazy stuff for that and then with the Texas situation this will likely happen again
part of the reasoning behind the Texas situation has to do with changes in global circulation
there's something called the polar vortex which is caused by the Coriolis effect which brings
me back to my college days basically what you need to know is the temperature gradient between
places like the poles uh and closer to the equator the difference between the hot and the cold keeps
is that the cold air gets trapped up in the polar areas and so you get the polar vortex
of this spinning circulation around the globe of this really cold air but as we've had global
warming and climate change the gradient has become less pronounced and that's resulted in this polar
vortex dipping down below and so if you looked at a map of the us with temperatures last week
you saw this huge kind of like a bell-shaped curve that was going down and really got into Texas
and this is the polar vortex it's called a wavy polar vortex and it's bringing the cold air from
the poles down to places like Texas where it's not used to having and so going forward we're going to
be seeing a lot more stuff like this and climate change is just going to become more pronounced
and so we need to make a change and what we've been seeing with climate change is an example
of a positive feedback loop the idea is that for example if we remove trees we're burning
those trees that releases the carbon that they've sequestered which leads to higher co2 readings
which keeps more energy in the atmosphere which in turn will warm the planet which will melt
more ice which makes it so that when we melt ice we're not reflecting as much of the solar energy
back out into space so we're going to be keeping more energy and this positive feedback loop is
once something starts happening it's like you're hitting the accelerator and things
are going to start getting worse and worse and that's the reason why climate scientists
have been so outspoken about the need to start making changes now because if we don't
it's going to be really hard to stop and so that's my biggest bull thesis for why I’m investing
into renewable energy stocks this is something that I’m very passionate about and finding places
that you can invest that you're passionate about are fantastic for people watching this it doesn't
have to be in renewable energy but I think it's great to invest in something that you're very
passionate about it can be something like EV’s it can be stuff like different technology options but
I think it's a fantastic way to invest your money because you're investing in a future you want to
see and you can benefit from that and you can be helping fund it which is I think a fantastic thing
so now I want to talk about the four renewable energy stocks that I have in my portfolio at this
point I want to start with the two most recent editions and admittedly I did not have the best
entry into these stocks last week I was definitely having an emotional response to the whole Texas
situation I bought into two of these stocks that I’ve been eyeing for a long time and as a result
I’m down like five to ten percent on each of these positions but I planned ahead I wanted to
take a feeler position is what I call them it's a smaller position where if things go poorly I
did not take my normal position size and I can buy at a lower price and lower my average cost and if
things go well I have enough money in there where it will make me money I’ll be happy with that but
so I started small and I will add if things fall further the first stock I bought has to do with
the solar energy video that I made I think it was like two weeks ago and I’ll link that above right
now if you missed that but in that video I talked about an etf that follows the overall sector and I
bought into the etf that falls the solar sector which is ticker symbol $TAN in that video I
talked about Enphase Energy Stock (ENPH Stock) which has been doing extremely well but it is
very overextended as I mentioned I think it's up 11,000% in the past five years so I always talk
about the general rule of thumb that I follow that if I don't fully understand a sector I buy
the etf because it allows you to benefit from the increasing value of the sector but you don't have
to pick specific stocks and figure out which one has the competitive advantage over the other so
buying the etf in a sector that you don't fully understand all the companies I think is a very
beneficial thing and that's the reason why I decided to buy this etf instead of picking
something like a first solar stock (FSLR Stock) which I’m a huge fan of or an Enphase Energy
Stock (ENPH Stock) which I’m also a fan of so I’m buying the whole sector because I’ll benefit from
the explosive growth that we're expected to see with this industry so here's my bull thesis for
why I bought into the solar etf $TIN from 2009 to 2017 manufacturing costs for solar energy stuff
fell 86% it has made solar installations much more affordable and it's become very realistic
for businesses and homeowners to be putting them onto their properties and so this is one of these
things where this is also a positive feedback loop as people get more involved the cost is going to
go down it's going to make more people be buying in and implementing solar energy strategies into
their energy and so this is a very positive thing number two the industry has reached its 2020 goals
back in 2017 so they have been exceeding their expectations in areas like residential solar costs
which went down to 11 cents per kilowatt hour as more people get on board the cost will continue
to come down that's another positive feedback loop number three tax credits are huge incentives
for people looking to get into solar as of right now you can currently write off 26% of the total
cost and I’m expecting that number is going to increase in the future as we do have the democrats
controlling the house senate and the presidency so if they want to get something passed they do have
the ability to do that I think tax credits is a fantastic way to motivate people to buy in a solar
because as I say money talks and if you can write off more and more of the installation costs it's
more beneficial for people to look into that as a an energy solution going forward then the second
green energy stock that I bought is Brookfield renewable Stock (BEP Stock) ticker symbol $BEP
this has been a stock that I’ve been eyeing for a long time pretty much since I decided I wanted to
be investing in renewables but I never ended up pulling the trigger but my emotional response to
the Texas problems is the reason why I decided to finally pull the trigger and buying a $BEP
the reason I really like Brookfield Renewable Stock (BEP Stock) is that they don't really
focus on one single area of renewable energy I bought $TAN which focuses on solar energy but
Brookfield Stock (BEP Stock) doesn't just focus on one they are mostly involved with hydroelectric
but they have been expanding to wind and solar facilities right now 65% of their free cash flow
is going towards hydroelectric but they are seeing the switch that comes from they bought Exelon’s
solar business for 810 million dollars and they're expected to have 18 gigawatts of capacity for
solar in the next couple years this will expand their energy capacity that has increased sixfold
since 2015 and they have locations in north America Latin America Asia and Europe while
they aren't innovating in one specific area I love the diversity of the type of energy that they're
investing in it's kind of the same reason why I bought into TAN as an etf because it follows the
sector for solar in my mind I think of Brookfield Renewable Stock (BEP Stock) as being it has the
best of both worlds it has the focus on some of the really exciting places like solar but has
the reliable energy sources like the hydroelectric which has been around for a long time and has been
very good for the people that have used it over the past 20 years the company's had an
annualized return of 18 since the year 2000 which has destroyed the returns of the s p 500 that's
in single digits for their analyzed return basis looking forward the company expects annual returns
in the low teens which will likely beat the rest of the overall market and part of their returns
comes from a 3.3 dividend that over the history of the company being public has never dipped below
three percent so to summarize here's my both thesis for Brookfield Stock (BEP Stock) number
one it's a well-established renewable energy Stock that has a solid track record number two
they're expanding to more than just hydroelectric after they bought the excellent solar business and
I think that's very exciting number three their expected returns are supposed to beat the market
with returns in the low teens which is not as sexy as some of the returns that we've talked about in
the past year but once the market craziness calms down returns in the low teens are what you're
going to be aiming for and so that's a huge reason why I decided to buy in the three percent dividend
is nice and will allow me to bring in some extra cash to buy more shares and then I’ll quickly go
over the other two renewable energy stocks that I currently have in my portfolio but I did make
a video on my birthday when I bought more of these shares and I’ll link that above right now
so my favorite stock of 2021 is still general electric stock (GE Stock) ticker symbol $GE I
currently have a complex position when it comes to General Electric Stock (GE Stock) I have a covered
call against the 100 shares that I own at this point and then I have a remaining like 50 shares
that are long for the company and then I have a leap which is actually an acronym which stands
for long-term equity anticipation security that'll expire in January of 2022. the reason behind this
is I sell the covered call which is part of the wheel strategy to bring in extra income
to buy more shares and this is something that I like doing on companies I don't really expect to
shoot up in price significantly over like a one week basis I do expect General Electric
Stock (GE Stock) to go up over the long term which is why I have the naked shares and why
I have the call option that will increase in value if the company continues to increase in
price which has done a lot pretty recently and so this is just kind of my strategy of doing it
I don't think Ge Stock ($GE) is a stock that's going to shoot up to the fifteen dollar price
target that I have by the end of the year within the next virgin's report and that's why I’ve been
selling options bringing in the premium to buy more shares and that's just my personal strategy
so here's my both thesis for general electric number one I think this is a fantastic recovery
play that doesn't get talked about enough aviation is our largest and most profitable business
and with air travel coming back and some of the positive news that we heard from today which is
the reason why my whole portfolio is up on the day because my renewable energy stocks
not doing so hot today the airlines with southwest has really been bolstering my portfolio today but
things should be getting back to normal in the next year and having the most profitable part of
their business come back will be great for them number two they're already involved in major win
projects by providing turbines for a project in Lithuania and they also provide the wind turbines
for the world's largest wind bank off the coast of the up number three I think this is a company
that will likely government funding for future renewable energy projects because they are a very
large us company and I’m just kind of guessing that the way things are going to go is that
the us government is going to want to invest in us companies not the foreign-based ones and
so having a large company like ge be part of the equation I think will be very likely that
they'll get some funding in the future which will boost the share price and then my final renewable
energy position is with NextEra energy Stock (NEE Stock) ticker symbol $NEE . First, NextEra
Energy Stock (NEE Stock) is the largest energy company in the united states passing stuff like
chevron and Exxon Mobil which is very interesting to see but it has fallen in the past couple weeks
as a result of the Texas news but in my mind when one of your favorite stocks goes on a dip I think
of that as being on a discount I will likely buy more when a lot of my cash that's being tied up
in a Zynga position will likely go away by the end of next week and I’ll be adding to this position
here's my bold thesis on NextEra energy Stock (NEE Stock) number one I think there's safety and size
investing in the largest us energy company is a fantastic thing in my opinion and that's the
reason why I feel decently safe buying the dip instead of thinking that this might be like
a free fall number two it's had an incredible track record the return since 2000 they've seen
a compound annual growth rate of 17.8 percent with dividends and 14.8 without that dividend
and speaking of that dividend they are dividend aristocrats meaning that they have raised their
dividend payout every year for the past 25 years so this is a company that's a fantastic
track record they're the largest energy company in the united states and they do have a lot of
production capabilities with renewable energy and I think that's very exciting so
as of right now I’m very bullish on renewable energies as a whole we might see some problems in
the short term as a lot of the problems with Texas has been politicized but I think the long-term
outlook on the sector is so positive and that's why it's the largest part of my portfolio right
now even beating out stuff like technology which has been the dominant force in my portfolio for
a long time so let me know what renewable energy stocks you guys are looking to buy or have bought
in the past and let me know what you thought about my two recent additions to my portfolio with $TAN
which is the solar etf and then Brookfield renewable stock (BEP Stock) which is ticker
symbol $BEP thanks for watching I appreciate all support and I will see you in the next video