James Altucher , water and theme investing

A reader asked me what do you think of water stock as long term holding. He has read James Altucher banging the table on them for over a year and wants to know my opinion.

Today I read an interview with Marc Faber saying water will be tomorrow's oil. The problem with theme following is you do not know, whether it is long term trend or fad. Plus identifying themes is a special skill few people posses. You do not know when James Altucher got in to these stocks, what his cost basis is or is he selling them currently.

Lot of themes never prove profitable. Many months back, I was reading about some hedge fund which was identifying the bird flue fighting industry as new theme. I don't know whether that fund still exists today or quickly switched to another theme. Similarly when the Dubai port issue was hot, I heard one of the TV gurus proclaiming port security as the new investment theme. Those who invested based on that theme must be still waiting for those stocks to tick up.

Some year back fiber was the hot theme. There was supposed to be so much demand for fibre and so on. All of you know what happened to that.

The only theme based investing I do is using earning/sales or price acceleration as theme. If any one of these themes really becomes hot the stock in that industry will either have earning/ sales or price acceleration. I have one water stock in my holding currently LNN, why because it came on my earning screen. If you just follow the earning/sales or price trend you will never miss any of the new themes.

If you are looking for theme to invest, here is red hot theme. Buy a casket full of following stocks.
AWGI,Alderwoods Group Inc
CSV,Carriage Services Inc
SCI,Service Corp Internat
SNFCA,Security National Financial Corp Class A
STEI,Stewart Enterprises Cl A
STON,Stonemor Partners L.p.

With so many baby boomers aging, you can't go wrong with these stocks.

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