CNBC’s Jim Cramer says Fossil Fuel is the new Tobacco

Many Australians may not know who Jim Cramer is, but Americans certainly do. The host of CNBC’s Mad Money, Cramer provides advice on the stock market and while controversial, you’ll never be in doubt about what he thinks.

Cramer used to be extremely anti-Tesla, but has recently changed his position, as he monitors the markets and public opinion and provides advice.

Commenting on big oil companies, like Exxon Mobil, Chevron and BP, Cramer explained that he believes public opinion has changed on these stocks and that we’re starting to see divestment all over the world.

Despite the stocks offering decent returns, Cramer believes the time is up for fossil fuel companies and you, environmentally conscious people simply don’t want to own their stocks, regardless of the financials.

Cramer went as far as saying that he believes that companies like Exxon and Chevron are now being viewed in the same way that cigarette companies are, negatively.

Given the scale of these businesses, they certainly have a long runway before there’s any crisis, but I believe it is noteworthy that companies can be impacted, not just by the way consumers spend their money on products (petrol vs electric vehicles), but also by the way they (or funds) invest their money in the shares of these publicly traded companies.

An article on the Mad Money website goes into further detail on Cramer’s position.

While older money managers may hope the traditional energy complex will make a comeback, Cramer said the mindset is different among younger investors.

Younger portfolio managers believe that oil and gas are the new coal. If you take climate change seriously, and most younger people do, including younger portfolio managers, then it’s hard to believe in the long-term health of this industry.”

Cramer recently detailed his confidence in Tesla as a stock (up 165% in the past 4 months). Their ability to beat market expectations. This reminds him of the rise of Amazon and Netflix, and how underrated those companies were in the early days.

We see some of this societal move in Australia with protestors against the Adani coal mine in QLD, taking action against any contracted business that works to assist the mine development.

As public opinion transitions to support the production of energy using sustainable techniques and technologies, it’d be smart to invest in business looking to the future, rather than the past.

Via Electrek

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Jason Cartwright
Jason Cartwright
Creator of techAU, Jason has spent the dozen+ years covering technology in Australia and around the world. Bringing a background in multimedia and passion for technology to the job, Cartwright delivers detailed product reviews, event coverage and industry news on a daily basis. Disclaimer: Tesla Shareholder from 20/01/2021

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