The Electric Revolution: Betting on Humanity's Brightest Future
Control the electricity, control the future.
In 1831, Michael Faraday demonstrated electromagnetic induction, sparking a revolution that would light up the world. Today, we stand at a similar inflection point. The currency of the 21st century isn’t gold or oil—it’s electricity. This portfolio isn’t just about watts and volts; it’s a wager on humanity’s insatiable appetite for progress and our chronic underestimation of exponential change. With the 2024 election reinforcing policies favoring deregulation, fossil fuels, and infrastructure spending, the portfolio’s thesis gains new urgency.
The Thesis, Distilled
The Pillars of Power
Nuclear Renaissance
Cameco (CCJ) thrives on a paradox: societies claim to fear nuclear waste but secretly crave its certainty. Post-election, eased restrictions on Russian uranium imports stabilize supply chains, while AI’s 24/7 power demands (e.g., Microsoft’s nuclear PPA) validate its role.
Constellation (CEG) locks in billions via federal tax credits, leveraging GOP support for atomic energy as a counterweight to renewables.
Wildcard: NexGen (NXE) and Centrus (LEU) bet on uranium grade arbitrage and HALEU shortages—critical for next-gen reactors.
Natural Gas: The Necessary Evil
Cheniere (LNG) profits from Europe’s energy schizophrenia: condemning fossil fuels while paying premiums for LNG. Post-election FERC fast-tracks Corpus Christi’s Stage 3 expansion, aligning with Trump’s "energy dominance" doctrine.
Grid Guardians
Quanta (PWR) and Vistra (VST) are the unsung heroes of electrification. PWR’s trillion-dollar infrastructure tailwinds meet VST’s ERCOT dominance, where fossil backups power 90% of Texas data centers during renewable lulls. Deregulation under Trump prioritizes speed over green ideals, favoring VST’s battery arbitrage.
Speculative Sparks
Nano Nuclear (NNE) embodies the portfolio’s asymmetric bets: its 10MW microreactors bypass grid queues, appealing to a Pentagon desperate for portable power. Post-election defense budget hikes could fast-track contracts—if the NRC moves faster than its glacial pace.
The Bottom Line This portfolio isn’t just an investment in electricity—it’s a bet on the tension between human ambition and institutional inertia. By 2050, global electricity demand will triple, but grids, reactors, and pipelines won’t magically scale. The companies here thrive on that friction:
Cameco and Constellation profit from our grudging return to nuclear pragmatism.
Cheniere and Vistra exploit the gap between green aspirations and fossil-fueled reality.
Nano Nuclear and NexGen are call options on a future where energy density trumps ideology.
Remember: In 1912, cars outnumbered horses in Manhattan not because horses vanished, but because progress concentrated where it mattered most. Today’s creaking grids and hesitant reactors are the urban horses of our era. This portfolio backs the Model T factories of the electric age—companies that control the arteries of power in a world where every innovation, from AI to quantum computing, begins with a spark.
Control the electricity, control the future.
Thanks for reading,
Guillermo Valencia A
Cofounder of Macrowise
February 8th , 2025
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