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Welcome Everyone 👋
What incredible growth we’ve had in less than 2 years. We now have over 425,000 followers across social media and +70,000 subscribers on our newsletters. We’ve grown from 1 weekly email to launching GritDAILY, GritCRYPTO and now GritCARBON! Today, you are receiving the first issue of GritCARBON but make sure to subscribe HERE to receive all future issues!
Carbon is a chemical element with the symbol “C” and the atomic number 6. It makes up less than 0.025% of the Earth’s crust. While it may seem insignificant, it’s incredibly essential.
After all, using radiocarbon dating, we can analyze the age of almost any object containing organic material. This helps us understand our past – and prepare for our future.
That is why Genevieve and I chose to name this newsletter: GRIT Carbon. We will pay homage to the past – including our combined decades of experience in the market – while looking to the future.
And a large part of that future will revolve around: carbon. How we use it… who gets to use it… and who doesn’t get to use it.
We’re at an exciting crossroads. Business and world leaders are increasingly convinced – and even insisting – that the world needs a paradigm shift in the way it thinks about energy, the way we view sustainability, and what it means to act as a responsible steward of shareholder capital – as well as the environment.
For most of the last century, these viewpoints seemed at odds. How can you live in the future but profit today? At GRIT Carbon, we answer that question.
And true to GRIT form, we’ll do so in an entertaining way.
Every Thursday, you will receive our GRIT Carbon Weekly. This article will cover the crucial happenings in the evolving energy landscape.
Then, on the last day of every month, you will receive the GRIT Carbon Circular. This will be a hard-hitting, in-depth piece that takes a deep dive into our favorite sectors and drills down into a specific, actionable pick.
These picks will be either publicly traded stocks or private deals that we feel have tremendous upside. What we like to call: GRIT Carbon asymmetric bets – limited downside and massive upside. And as always in true GRIT form, we will always let you know if we are shareholders in the company!
For example, Genevieve has already done well on two private carbon plays: Base Carbon and Carbon Streaming. She got in on the early financing rounds and let her investment ride as the companies executed and eventually took profits when she felt necessary! As the companies have grown, so too have their market values. We’ll find more plays like these in the months to come.
Finally, Genevieve and I will hop into the studio once a quarter to bring you our GRIT Carbon Podcast. On the show, we’ll recount our latest adventures (I practically live on planes, trains, and boats)… recent wins… and even painful losses that can be turned into learning experiences.
We’re excited to bring this new service to you. Genevieve and I have been friends for years, and it’s about time we teamed up to create something special.
So without further ado, let’s get to it. It’s time for your first issue of the GRIT Carbon Weekly.
(Editor’s Note: as a bonus to GRIT Carbon Circular Subscribers, we’re throwing in a subscription to our recently launched GRIT Crypto newsletter free of charge. Click here to receive both for the price of one.)
The Biggest Trend in Carbon Today
On July 1, the EU just announced it will ban all new internal combustion and diesel cars sales starting in 2035.
The internal combustion engine ruled the 1900s. Those days are now numbered. Governments, auto companies, and consumers are more aligned than ever that the fuel source of trucks and cars must shift to electric – or anything other than fossil fuels.
Farewell, ICE – you had a good run.
But here’s where our take differs from most of the Mainstream Media and other pundits. The death of the internal combustion engine is not the same as the death of all fossil fuels. Not by a long shot.
You see, oil is the most widely traded commodity on the planet. Most associate oil with gasoline for cars. But oil is used in virtually every step of the industrial process as well. It’s used in plastics, cosmetics, and propellants.
It’s so ingrained in our ecosystem that it would take trillions of dollars and decades of work to decouple it. At the same time, the prices of, well virtually everything, would skyrocket.
And if the current worldwide reactions to soaring inflation at the pump, at the store, and yes, even at the local pub are any indication – consumers will not stand for more price increases.
That’s why at GRIT Carbon, we’re not interested in writing about the death of one energy and the rise of another. We analyze the evolving energy mix, supply, chains, and consumer trends to help you cash in on the energy mix of the future. The new Carbon.
Our Compass
We don’t have a crystal ball. Any analysts that claim he/she does, run, don’t walk away. That said, what we do have, however, is our trusty GRIT Carbon Compass (the “GCC”). And here’s what it’s signaling to us as we go into the second half of 2022:
Old becomes new. Each week it seems an old energy company like Shell or BP announces expansion plans to build out renewable energy in wind, thermal, and LNG. We’ll watch this trend closely for opportunities to strike.
Capital is precious. As me and Gen’s mutual investing hero, Warren Buffett explains, “Only when the tide goes out do you discover who’s been swimming naked…”
Piggybacking on that point, when capital becomes tight during a period of monetary contraction (i.e. rising interest rates) and recessionary tendencies, phony, weak companies shrivel and die. Strong companies tighten their belts, adapt, and thrive. These are the companies we’re looking for.
The good news is, we’re in a target rich environment. The brutal market action has decimated many terribly run companies – deservedly so. But there have been many babies thrown out with the bathwater.
Using our GRIT Carbon screener, we have seven or so extremely promising opportunities. We’ll take the rest of this month to wrap up our due diligence process. We’ll only bring you opportunities Gen and I would feel comfortable putting our own money into – and in many cases, we will.
The GRIT Carbon Bottom Line
Energy is changing. The world is changing. Check out the carbon initiatives from some of the world’s largest companies:
BP – the energy giant unveiled plans to achieve net zero carbon emissions by 2050.
Shell – BP’s competitor has the same target date for net zero emissions
Walmart – in April, the world’s largest retailer announced plans to reach net zero by 2040.
Microsoft – the tech icon rolled out a strategy to not only hit net neutral, but to go carbon negative by 2030.
This is just a brief sampling. Dozens of companies representing trillions in market cap are making the same push. And to help them execute, they will need innovative companies to help them achieve these goals.
We will scour the market for these innovators and position our readers for potential upside while limiting our downside risk.
Markets are changing. Energy is changing. The world is changing. Indeed, change is the only constant.
The good news is that by being a charter subscriber to GRIT Carbon, you’ll be prepared for – and to profit from – the Age of Carbon.
Until next Thursday…
To Carbon,
William Mikula and Genevieve Roch-Decter
To receive our monthly CIRCULAR edition—which will include actionable stock picks, deals, etc—become a PAID subscriber here!
If you don’t want to miss these types of emails, sign up for the FREE GRIT Carbon newsletter! 👇