Dear Mr. Berko: We have $38,000 in cash that we’d like to invest. We are 73 and 80, and a broker we’ve used for 35 years, who is retiring this year, suggested that we invest this money in AT&T (which we know you like) and Aqua America. We would appreciate your thoughts on Aqua America.
— GR, Erie, Pa.
Dear GR: Yes, I like AT&T, and I like this guy. Too bad he’s hanging up his tools.
I couldn’t imagine a more blasé, uninteresting and boring company than Aqua America (WTR-$26). But I couldn’t imagine a company whose product is more important to the political, social and economic welfare of a country than Aqua America’s.
WTR’s history began in the winter of 1886, when an association of Swarthmore, Pa., residents decided to abandon their home wells in favor of spring water. This association was granted a charter to supply water to the residents of Springfield Township in Delaware County, so a contract was made to build a pumping station with underground pipes to the homes of the association’s 49 members. In 1887, after completing its first full year of operation, the waterworks had revenues of $648.78 and made $40.47. However, as the number of users increased, so did the association’s responsibilities. Therefore, the members incorporated Springfield Water Co., which eventually, after myriad acquisitions, became the precursor of Aqua America.