How to Invest in Water Through The Stock Market – Water Rights Investing

The rights to water are now open to the public thanks to the commodity being available in the stock market today. Investors have also managed to make a pretty penny by investing in water and seen great success. While it might sound strange if you look at the real-life example of Dr.Michael Burry who was portrayed in the movie called The Big Short with Christian Bale as Dr Burry. In the film and real life, Burry invested in water along with other investors. There is enough proof to show that investing in water rights can actually be a profitable stock option. Aqua investors know that a lot of water is needed for the manufacturing industry and especially for companies that deal predominantly in water-based products like chocolates and wines. For one gallon of wine, it takes 872 gallons of water, and as for the same pound of chocolate, it takes 2,061 gallons of water.

The truth is, the day has come when freshwater is now considered to be severely short to keep up to the growing need for water. There is less than a percentage of water that can be consumed on earth because the rest of the 70% is saltwater. Water is valuable and is a resource that is renewable through careful afforestation. In today’s urbanisation, deforestation is taking over and has become a necessity, making water a lucrative commodity.

How Can You Invest in Water Rights and Stock

There are several ways you can invest in water, and some methods are direct, while others are not so straightforward. There are four main ways you can invest in water and choosing one of these is a great way to get started. Remember that the more you know about water rights and investing in water, in general, the better for your performance on the index.

  • Choose Exchange Funds That Are Low Cost – ETFs of Exchange-traded funds are a prevalent investment option, mainly because of the access they provide for investors. Their fees are very low and making it one of the best ways to get into the water market if you are a beginner. The prices are below point five per cent making it perfect for starter-investors.
  • Water Rights Investing – Another way to own water is to have access to all freshwater bodies and groundwater. Once you have access, you will be able to charge governments and companies for their access to the water you own rights for. Remember, as an investor, and you have a contract of what water bodies and water points you have access to. Some websites are dedicated to buying water rights and are very helpful if you wish to purchase the rights to water bodies as a stock option.
  • Farm Investing – This option might seem like a far fetched cry, but a good farmer knows the importance of water. Buying a lucrative and good land, you can grow almonds or even wineries and ensure that you can double the profits of what started off as a water investment. Many investors do not choose thing option as it goes far from their portfolio; nevertheless, it is a good idea to consider.
  • Water Stocks – As a water investor, you can directly jump into the stock market and choose a stock that is related to water. Several water companies are on the stock market in different companies and choosing one to invest in would be the same as investing in other commodities. Wastewater treatment is also sold as part of water stock.

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