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Battery Bubble - Scott Adams' Blog

Battery Bubble

I read an interesting report in the media about a new technology breakthrough. Obviously you shouldn’t believe the report, for two good reasons.

a. The story is about technology.

b. It’s in the media.

According to the story, a Salt Lake City company, Ceramatec, has developed a super battery that will soon make it practical and economical for homes to be off the power grid, or mostly off, as long as you also have solar power or your own wind mill.

http://www.heraldextra.com/news/article_b0372fd8-3f3c-11de-ac77-001cc4c002e0.html

I’m sure this is one of many research projects going on right now to improve battery technology. MIT is spewing breakthroughs:

http://www.ecogeek.org/component/content/article/2607

The battery industry has excellent financial bubble potential. By the time you put batteries in your house, your electric car, and all of your portable electronics, we’re talking serious money.

If you want to invest in the future battery bubble now, figure out what raw materials or related products are generally necessary to add battery storage to a home with solar power, or electric cars. For example … pause while I Google… maybe a product like this chip, or future versions of it, will be part of the next boom:

http://www.electronicsweekly.com/Articles/2009/08/20/46785/linear-spotlights-lt3652-chip-for-solar-power-battery-charging.htm

Just to make this prediction interesting, moments ago I bought a few shares of Linear Technology (LLTC), the company that makes that chip. I ignored the company’s fundamentals, because I’m making a bubble play. It’s probably a year before the battery bubble forms, if it ever does. And obviously you can ignore all of the analyst recommendations for the stock. I believe you’re all smart enough to know those are complete bullshit.

What other stocks would benefit from huge improvements in battery storage technology? Let me see your ideas. Ignore the obvious companies, such as the solar cell companies. They already had their bubble run. Let’s dig one level below the obvious.

[Warning: Don’t take financial, medical, safety, romance, or career advice from cartoonists. Any one of those could get you killed.]