China needs coal. That's the theme of today's chart, which displays the past seven years' of trading in shares of Yanzhou Coal, one of China's largest coal producers.
You see, despite any lip service China gives toward climate change, the country is coal crazy. China's coal consumption increased by more than 200% from 2000 to 2008... and the country generates around 75% of its electricity from the stuff. This incredible demand is driving a huge bull market in companies like Yanzhou...
After a suffering a huge decline in last year's credit panic, Yanzhou has enjoyed an amazing recovery... and now sits at an all-time high. Shares are up 11-fold since 2003.
Yanzhou's rise represents one of our favorite long-term investment trends: Determine what China needs, and sell it to them. One of the "no brainer" ideas here is fuel... the basic and essential need of a modern economy. If China wants to keep its economy racing higher, it's going to require incredible amounts of coal, oil, natural gas, and uranium to power the engine. Yanzhou is a shining example of this trend at work.
You see, despite any lip service China gives toward climate change, the country is coal crazy. China's coal consumption increased by more than 200% from 2000 to 2008... and the country generates around 75% of its electricity from the stuff. This incredible demand is driving a huge bull market in companies like Yanzhou...
After a suffering a huge decline in last year's credit panic, Yanzhou has enjoyed an amazing recovery... and now sits at an all-time high. Shares are up 11-fold since 2003.
Yanzhou's rise represents one of our favorite long-term investment trends: Determine what China needs, and sell it to them. One of the "no brainer" ideas here is fuel... the basic and essential need of a modern economy. If China wants to keep its economy racing higher, it's going to require incredible amounts of coal, oil, natural gas, and uranium to power the engine. Yanzhou is a shining example of this trend at work.
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