🔥 Jim Rogers is taking a contrarian stance by investing in coal, despite the prevailing view that it’s a declining energy source.
💰 He believes the energy transition will take decades, and coal will remain in high demand, especially in emerging economies like China, India, and Southeast Asia, due to its affordability and abundance.
📊 Coal stocks are currently trading at low multiples, around six times earnings, and many companies are debt-free.
📈 The International Energy Agency forecasts stable coal demand through 2050, driven by developing countries’ limited resources for renewable energy investments.
@Artedeinvertir:
“Jim Rogers is also putting into practice his theory of going against the market and betting on new trends before they are recognized by the rest of the investors, specifically in coal stocks, given that the consensus view of the market is that it is a type of energy that is going to cease to exist in very little time. However, Jim Rogers thinks that decades will still pass until there is a real energy transition, and being a very cheap and very abundant source of energy, it will still have high demand from emerging countries such as China, India, or the entire Southeast Asia. As you can see in this graph of the main listed coal stocks, they are trading at a very low multiple of only six times earnings, and most of these companies are free of debt. Some of the largest companies in this sector are Consol Energy, Peabody, or WH Heaven Coal. What Jim Rogers is trying to explain to us is confirmed by the International Energy Agency. Probably one of the most important organizations has just given its forecast for 2050 and estimates that the demand for coal will remain stable, as you can see in the following image, unlike the generalized thinking. This is because developing countries do not have as many economic resources to invest in renewable energies as in the United States or in Europe, so there will continue to be a very important demand in the future. Some of these American companies have very low production costs due to the high quality of their mines. In the past, companies like Consol Energy exported only 30% of their production to Asia; currently, they already export more than 60 or 70% of that production.”
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