American Water Works: Investing In A Water Utility Giant
By Mark Bern, CPA CFA
We gripe when we fill up our cars and SUVs at the pump, paying over $3 per gallon for refined petroleum. But we think nothing of paying $1.50 for a 16-ounce bottle of water. There are 128 ounces in a gallon, or eight 16-ounce bottles. That means we are more than willing to pay $12 per gallon for water, but we get upset with the oil companies for gouging us and making huge profits. Does this make any sense? Have you ever experienced a drought where you live? I have and it's serious business. The population is growing and there is a finite amount of fresh water in the world and it isn't distributed according to population. "Over 70% of our earth's surface is covered by water ... 97.5% of all water on earth is salt water, leaving only 2.5% as fresh water. Nearly 70%Complete Story »
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