How to choose between the old and new energy sectors, ice and fire?

Mondo Finance Updated on 2024-02-22

In the investment market, there is a confusing phenomenon that makes many people unable to start. It is that the development of the new energy industry has been in full swing in recent years, with hundreds of billions of financing, and substantial expansion of production capacity.

It's not surprising to think about it, the old energy supply-side reform, no overcapacity, no new entrants, is making a fortune in a muffled voice, who will rise if it doesn't rise?

The game of capital was originally like this, in the past few years, new energy has been hyped, the plate is high, and the current capital, of course, has to seek a safe place.

Which one hasn't been hyped up and is safe? Throughout the market, traditional energy is counted as one, don't underestimate the coal and oil industries, which are favored by large funds.

In essence, new energy is inseparable from traditional energy, the materials used in lithium battery, the precursor of graphite is a variety of petroleum coke and coal coke, and then the manufacturing process is inseparable from hydropower, and the energy consumption is also very high, and China's power grid is mainly thermal power.

From the perspective of capital, the old energy is state-owned enterprises without excessive competition, more likely to be internal distribution coordination, will not be involuted at every turn, the overall development is relatively stable, and the new energy is different, what fun is rushed, all players are coming, it is inevitable that vicious competition, so the industry is inevitably good when it is good, bad when it is bad.

Look at Mr. Warren Buffett again, what is constantly increasing his position is Western Oil, an American traditional energy company, which shows that the stock god still has a soft spot for old energy.

On a larger level, the so-called old energy also contains all kinds of national economy and people's livelihood, and the importance of oil and coal is self-evident.

In addition, among the listed companies in the traditional industry, there are many cash cows, and the old energy is no exception.

Originally, since entering the market, I have always been more optimistic about traditional industries such as oil and electricity, and I will not leave my position list because they are the "sunset industry" in other people's mouths.

This article is only a record of personal opinions, not the basis and recommendation of investment, and you buy and sell at your own risk. Investment is risky and should be traded with caution.

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