This "Boring" George Soros Play Could Double (Again)

William Patalon III

Good investing is boring.

That's a favorite aphorism of billionaire investing icon George Soros. And it's a favorite of mine.

I thought about this "Soros-ism" the other day – during a conversation with Christopher Skokna, a new associate editor who just joined me here at Money Map Press.

With Fathers' Day approaching, we were talking about dads… our dads. You've heard me talk about mine many times here. Christopher's dad spent his career as a chemical engineer who designed storage tanks.

Christopher's dad's work still stands – in Lake Charles, La., at New Jersey's Meadowlands, and at the Port of Baltimore.

I'll grant you, when you first hear about the story, it sounds like boring work.

But I was instantly intrigued – for a couple of reasons.

First, I know that "boring" is often best. And, true enough, Christopher said his dad, Doug, retired a wealthy man – and at a pretty young 55 years of age.

Second, I just happened to be looking at an investment that is related to what Doug did for a living.

It's boring.

And that's precisely why we believe this stock could be a big, big winner.

A Global Survey

I invoked the Soros name here for a good reason: George Soros knows how to make money.

He and partner Jim Rogers achieved legendary Wall Street status with The Quantum Fund, a hedge fund that's often described as the first real global investment fund. The duo launched Quantum in 1970. Over the next decade, Quantum gained 4,200%, while the Standard & Poor's 500 Index climbed about 50%.

To me, that's proof that boring investments can be profitable.

And when it comes to investments, nothing is as boring to talk about as "infrastructure" – a clunky bit of jargon that refers to such civil-engineering mainstays as pipelines, bridges, roads, reservoirs, ports, and, yes, storage tanks.

The term is a yawner, but there's money behind it. While state and federal nondefense infrastructure spending has plummeted since 2008, it's still running at a rate of about $225 billion a year.

That's a hefty pot of money – and now that the economy is on a firmer footing, experts are forecasting an increase.

What makes this even more intriguing is that that's just public infrastructure spending in the United States.

We're also seeing big upticks in infrastructure spending in markets such as Europe and China.

And, back here in the U.S. market, there's also a big surge in private-sector infrastructure outlays – especially in the energy sector.

A big part of private and foreign infrastructure spending is going toward the design, engineering, and construction of facilities for the liquefied natural gas (LNG) industry, both domestically and overseas. This fuel, which is used mostly to generate electric power and heat, is becoming more and more popular because it's cost effective, clean, safe and flexible for trade.

The worldwide LNG market has doubled since 2000, and I expect it to double again by 2025. China alone should triple its current use of natural gas by 2020.

And here at home, according to BP's Energy Outlook 2035, which was published in January, the United States will double its production of shale gas by 2035, becoming the world's largest natural gas producer.

Resident energy expert Dr. Kent Moors has been telling us about the U.S. "LNG Revolution" for some time now – and says it will lead to a new "energy independence" for America. And Real Asset Returns Editor Peter Krauth – our in-house natural-resources expert -recommended Cheniere Energy Inc. (NYSE: LNG) in a special report last July 10: The stock has soared 129% since then, one of two dozen stocks that have doubled or better after we've recommended them to you in Private Briefing.

The LNG boom is clearly going to be big.

William Patalon III

About the Author

Browse William's articles | View William's research services

Before he moved into the investment-research business in 2005, William (Bill) Patalon III spent 22 years as an award-winning financial reporter, columnist, and editor. Today he is the Executive Editor and Senior Research Analyst for Money Morning at Money Map Press. With his latest project, Private Briefing, Bill takes you "behind the scenes" of his established investment news website for a closer look at the action. Members get all the expert analysis and exclusive scoops he can't publish... and some of the most valuable picks that turn up in Bill's closed-door sessions with editors and experts.

… Read full bio