In every industry there evolves a standard and once the standard becomes accepted it is treated as the normal. The standard can be reached for a wide variety of reasons – think about the light bulb from Edison vs Tesla, why was Edison the one picked? However once it was chosen, Edison’s light bulb was used for the next 100 plus years. In the era we are in now there is a shift from using fossil fuels to a renewable fuel. Is the correct choice rechargeable batteries or hydrogen? Is there a market for both? Time will tell the answer.

In an article from The New York Times News Service, truck makers are divided into 2 camps. Volkswagen AG truck unit is called Traton SE and they are betting on batteries. The other camp which includes fellow German company Daimler Truck AG and Volvo Trucks, which are the 2 largest truck manufacturers, are betting on fuel cells that convert hydrogen into electricity.

The nature of the trucking industry is it takes years to design and produce new trucks and the sales are 5 to 10 years down the line. The buyer has cost in mind – why everyone likes stylist trucks, the buyers are more interested in how much is the rig going to cost them to buy, maintain and refuel.

At the moment, battery powered trucks cost 3 times as much as a diesel model although there are savings in fuel costs. Hydrogen costs 1/3 more than battery powered, however the savings in fuel and maintenance could make them less expensive to own than diesel.

What ever the industry decides is best, that method will dominate the industry for years.

Linking to dividend paying stocks, one of the reasons why you want to invest in these companies is they are established and part of the normal method of doing things. Things can change and will change, but often times these companies can buy the new company and incorporate within its structure or profitable companies have options, as an investor you need to ensure it makes the correct decision or you can look for alternatives.

There are more questions than answers, till next time – to raising questions.