Today I’m introducing the second company from my investment universe that I find particularly exciting. All of the stocks mentioned are in my portfolio. Many of them are also part of my wikifolios in the ScaleLimits system. (Of course, this is just a snapshot.)
My focus isn’t so much on short-term price targets or quarterly earnings. I’m primarily interested in which technological bottleneck a company is addressing and why I’ve added it to my portfolio.
The overarching structure of my approach is shown on the DIBS Board (Dynamic Infrastructure Bottleneck Stack), which I regularly publish on getquin. The focus is on the technological bottleneck, not a stock’s current valuation.
Powell Industries
$POWL (-11,46%) is a company that many investors have probably never heard of. At the same time, the company is benefiting from a trend that is currently driving billions in investment. New data centers are springing up everywhere. Power grids are being expanded. Industrial facilities are being electrified. The energy demands of AI applications continue to rise.
The discussion often revolves around power generation, power plants, or data centers. Less attention is paid to the question of how the energy is actually distributed, secured, and controlled is actually distributed, secured, and controlled. This is where Powell comes in.
The company supplies electrical power distribution and control systems for data centers, utilities, industrial facilities, and energy projects. Without this infrastructure, electricity may reach the site, but it cannot reliably get to where it is needed.
In the DIBS system, Powell is part of the Digital AI and the Energy & Grid . Role: Steady Scout ⛵ In addition, this established company is included in my wikifolio CoreLimits .
For me, Powell isn’t a direct beneficiary of AI. The company doesn’t make its money from chips, software, or models. Powell benefits from the fact that more and more electrical infrastructure needs to be built.
These are exactly the kinds of companies I look for in the DIBS system—not the most well-known names in a tech wave, but companies that are at the heart of a bottleneck and stand to benefit from its resolution.
