Antonio Velardo, investment strategist and founder of MoatInvesting, underscores the growing importance of water infrastructure as a long-term investment theme. As water scarcity becomes a pressing global issue, Velardo believes that water-related assets offer both strategic value and financial resilience.
According to Antonio Velardo, several factors are converging to elevate water as a key consideration for investors: climate change, population growth, aging infrastructure, and increasing demand from agriculture and industry. These trends are placing unprecedented pressure on water systems, particularly in emerging markets and drought-prone regions.
Velardo points out that while water has long been viewed as a utility expense, it is now being recognized as a critical enabler of economic development. Investments in treatment plants, desalination, smart metering, and wastewater recycling are receiving greater attention, not only from governments but also from institutional investors seeking stable, inflation-protected returns.
From an investment perspective, Antonio Velardo highlights the characteristics that make water infrastructure appealing: predictable cash flows, essential service status, and alignment with long-term policy goals. Many of these assets operate under regulated frameworks or long-term concessions, providing visibility and reducing exposure to market volatility.
In addition, Velardo notes that water infrastructure aligns closely with ESG criteria, particularly in environmental sustainability and social impact. “Water access is fundamental to human development,” he explains. “Investing in solutions that expand clean water availability or improve efficiency addresses both ethical and financial priorities.”
Antonio Velardo also sees growth potential beyond traditional utilities. He identifies opportunities in technology providers, data analytics firms focused on water management, and companies innovating in irrigation, leakage detection, and water reuse systems.
As the gap between global water supply and demand continues to widen, Velardo believes this sector will attract increasing amounts of capital. Institutional investors are beginning to treat water as a strategic resource, much like energy or digital infrastructure.
Antonio Velardo views water as one of the most overlooked yet vital components of global infrastructure. For investors with a long-term horizon, exposure to water-related assets can offer resilience, diversification, and meaningful impact.
