Buffett plans billions more of energy investments

“We’ve poured billions and billions and billions of dollars in retained earnings, and several billion of additional equity,” into the energy business, says Warren Buffett, speaking at the Edison Electric Institute convention in Las Vegas. “And we’re going to keep doing that as far as the eye can see.”

Reducing Berkshire Hathaway's (BRK.A, BRK.B) reliance on things like insurance and stock-picking, Buffett has moved toward capital-intensive industries like energy and transportation over the past decade-plus, and Berkshire Hathaway Energy has $70B in assets today. "So far we've stayed rich," he says.

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Comments (7)
  • gmwells
    , contributor
    Comments (5) | Send Message
    Go Warren!
    9 Jun 2014, 04:40 PM Reply Like
  • Jalb
    , contributor
    Comments (146) | Send Message
    As long as the returns are higher than those shareholders would receive if they invested cash dividends in the stock market ...
    9 Jun 2014, 04:50 PM Reply Like
  • CapVandal
    , contributor
    Comments (823) | Send Message
    How about a little more debt for the utilities? Looks like they have about $30 billion, and could go higher. Issue some more 30 year bonds @ 5%.


    The wind investments have been subsidized by tax credits, and were a great deal. The future of tax credits are aways uncertain. However they were high enough to make the wind investments a no brainer. Fuel costs? Zero. Not quite hydroelectric, but close.


    The American Midwest is the Saudi Arabia of wind.
    9 Jun 2014, 05:06 PM Reply Like
  • Jalb
    , contributor
    Comments (146) | Send Message
    I trust investments that are dependent on tax credits as far as I can throw the HMRC (or, for you, the IRS).
    Investment in windmills needs to allow for depreciation charges and maintenance costs
    9 Jun 2014, 07:15 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (819) | Send Message
    Added to my position today.
    9 Jun 2014, 07:39 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (7341) | Send Message
    So does that mean we should buy pipelines? (CVRR) is the only energy investment I have, although I also own (SPWR) and (RGSE). (SPWR) could benefit if Buffett invests in solar projects. (CVRR) could benefit if more pipelines and railroads pass through its refinery. I could see (TRN) benefiting from more tanker cars and more wind farms.
    9 Jun 2014, 09:43 PM Reply Like
  • Dan Sturgis
    , contributor
    Comments (3) | Send Message
    I don't foresee us using less energy or transporting fewer goods.
    15 Jun 2014, 08:11 PM Reply Like
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