Fisher Investments on Utilities

Contents

Foreword

Preface

Acknowledgments

Part I: Getting Started in Utilities

Chapter 1: Utilities Basics

Utilities 101

A Defensive Sector

What Makes Utilities Defensive?

Chapter 2: A Brief History of the Electric Utilities Industry

Early Development in the US (1882–1935)

A Maturing Industry (1935–1978)

Market Liberalization and a New Set of Rules (1978–2009)

An Auspicious Start to the Twenty-First Century

Part II: Next Steps: Utilities Details

Chapter 3: Utilities Sector Composition

Global Industry Classification Standards (GICS)

Global Utilities Benchmarks

Why Don’t Utilities Have More Weight?

Benchmark Differences

Benchmark Changes

Sector Benchmarks

Industry Breakdown

Chapter 4: The Electricity Business in Depth

The Consumer: Who Uses Electricity?

The Vertically Integrated Electric Utility

Power Generation

Transmission

Distribution

Chapter 5: Utilities Sector Drivers

Economic Drivers

Political Drivers

Sentiment Drivers

Chapter 6: Utilities Investing in a Resource-Conscious World

Energy Challenges

Policy Solutions

Technological Solutions

Part III: Thinking Like a Portfolio Manager

Chapter 7: The Top-Down Method

Investing Is a Science

The Top-Down Method

Top-Down Deconstructed

Managing Against a Utilities Benchmark

Chapter 8: Security Analysis

Make Your Selection

A Five-Step Process

Utilities Analysis

Chapter 9: Utilities Investing Strategies

Adding Value at the Sector Level

Adding Value at the Country or Industry Level

Adding Value at the Security Level

Notes

About the Authors ...