The reason for these alternatives is based on advice from Warren Buffet. Mr. Buffet is often taken out of context when he has said he "doesn't invest in what he understands." He meant these to mean in the original context that he doesn’t invest in sectors were the winners and losers are well defined. Early investing in tech stocks was avoided because there were no clear winners.
There are several things you can do because of this. Invest in multiple companies. If you don't know who will knock it out of the park, place a bet on all the teams. For example, it may not have been clear who would be a winner in the smart phone market. When this became a thing back in 2008'ish, if you invested $5k in each of the leading players, Nokia, Apple, Samsung, or Microsoft that were fighting for dominance. The return on the clear winner (Apple) would have more than paid for the loser Nokia and the other underperforming companies. Apple went from about $8 to $150 today. If you piled into one of them, say Nokia, you'd be kicking yourself.
Or, invest in the winners of the winners. Since you are investing in the thesis of electric vehicles, who is leading the back in EVs? If your lithium thesis is a winner, the companies most ahead in the EV realm will be winners as well. This is also better because they are already established large companies that can go anyway the wind blows. Consider instead of investing in GM or other car makers.
Investing in the auto manufactures maybe a better choice because right now the leading producer of Lithium is China. It's also a commodity, while it may be constrained in the beginning with increased demand, that doesn't mean it will remain that way and commodities don't maintain their pricing power for long. Think of oil, it went up and crashed because new entrants entered the business.
If you could afford 100 shares then instead of buying shares at $139 to $140 (closing price is $139.66) area then I recommend you to get approve for Options. Last trade November Put $145 strike (sell this strike if you want to own it - the more time premium the better on any strike as more money you receive) was $9.80, so by selling naked Put (Mr. Buffet collect couple hundred $Mil on this strategy) and receive similar amount (see below F get even better return by create spread). This translate by 11/17 ALB trade below $145 then you are willing to purchase 100 shares at $145 and your actual cost is $135.20 ($145- $9.8). You save 3.19% from today cost or if it trade above $145 then you miss out the big gain, but on the other hand you keep $980 ($9.80 x 100 shares) or 7.017% in 6 weeks. You can roll over before expiration to continue receive more cash (this is your monthly income if you ever need) on an average monthly return from 2% to 5% of your cash margin on IRA/Roth IRA (with margin account x 4 the average return).
Talk about electric vehicle (EV). F have EV and will benefit more than Telsa primary with stock price are decent to own. Two weeks ago I sold 20 contacts (2,000 shares) for credit Put spread on F and collect $.52 on 4 points spread (Sold $12/Bought $8.00) looking to lock in profit almost 15% within 4 months (45%/yr) on my IRA.
As far as buying closer to the retailer end of the EV market, I read up on commodities and AGREE that, like oil, many more will get into the game of mining the brine. So now I have more assessing to do on the buy. ( note: the Squawk touched on ALB as well as many following programing outlets this morning so I feel my window to get in early is closing ) ...
He who waits for the perfect moment finds himself realizing there is NO perfect moment but the present!
Pending AllocationsUnder development. For now, you may view Pending Allocations by going to "fantasy TSP" and selecting "Leaderboard sort" of "Pending Allocations".
What else"Don't ever half-ass two things. Whole-ass one thing."
- Ron Swanson