Fellow Shareholders.
In regards to the reported lithium over-supply the world is about to encounter during 2023.
It has been mentioned on Marcus Today that a way to make money on a particular stock is to buy millions of shares in an unknown
company and then spend the rest of the time promoting it. I believe this is what the investments banks are now doing regarding lithium - but the other way around - not singing its praises as much as promoting its availability.
It is easy to be swept away in the
popular view that these investment banks must be idiots who can't read the writing on the wall. The future is electric! Lithium is King! Furthermore, the GFC, and subsequent movies based on it, indicate that the Manhattan banks haven't got a brain among them.
Maybe so.
But I think it is worth considering what the greatest commodity on the planet is:
It‘s people.
Or consumers to be precise.
You have to have the consumer with you.
The shift for the investment bankers from petroleum-based investment into renewables has been dramatic and it is only speeding up and they have a lot of money on the line. Therefore, in order for this new venture to be lucrative we also have to have the “End Entity” - the Consumer - safely on board.
And people are not going to take the step from the safe and tested over to the new and unproven unless they are convinced that they can A. Afford it and B. It works.
So, with the risk of appearing stupid Goldman & Sachs and all the others come out with report upon report that "prove" that the worlds lithium supply is plentiful and that the price will drastically fall – with, at the very bottom of the report: a disclaimer.
The decision to buy a new car is not like buying groceries for the average family - when it is done then it won't happen again for maybe 10 years.
So, it is crucial not to rock the boat when the consumer is JUST about to step on board, to lull them into a - false?- sense of security that all is well in the world of lithium so the bank sees a return of the billions of dollars it just ploughed into this new, untested venture.
(20min delay)