Power plays?Investing in alternative energies

Investors in the alternative energy sector take heed: it is almost without exception that every technology shift produces its winners and losers. It is therefore imperative to understand the technology, industry economics and lurking risks...

Few doubt that usage of alternative energy sources will increase over the next decade. This includes three key areas that should gain share of total energy consumption: solar, wind and ethanol. However, investors in alternative energy should be wary. As with all major technological shifts, there are typically a handful of winners - but many losers. It is, therefore, important to thoroughly understand the technology, industry economics and inherent risks. Investors should strive to gain an information edge by having the deepest understanding possible of the companies covered and stock pick...