Why I think that Renewables are not a good investment right now if you are looking for yield.

Hello all,

This might be an unpopular opinion but this is why I think that investing in renewables is important but not the right choice if you are looking for yield:

Why invest in renewables:

1. Climate change etc.

2. energy security (this has gotten more attention lately)

Obviously we don’t want to depend on other states exports and we also want to live on this earth for a long time to come.

The solution might be -> renewables.

That is why investing in renewables is important (in my opinion).

Why shouldn’t you invest when you are looking for yield?

I don’t know if this is entirely true but many companies are just not that profitable. Companies need huge initial investments to first build the infrastructure and so on and so forth.

Money that other companies could spend on dividends or buybacks needs to be spent on building the infrastructure.

Now I could be completely wrong and renewable energy companies will soar on the future but just look at this example:

Apple: can improve cashflows by completely investing in itself. Own chips, Saas adaption etc.

Orsted: needs to build costly wind turbines to start creating energy.

Energy needs to be „sold“ at competitive prices so that people start considering it over fossiles.

Needs huge initial investment just to become profitable.

We need to massively invest for a brighter future – not for better returns.

Am I overlooking something?

Let me know your opinion.