Berkshire Hathaway and Warren Buffett, which has deals in place to expand its energy business into Western Canada and Nevada, plans to invest a lot more into this industry. In part, they will do so by betting on renewable energy, said Warren Buffett.
“We’ve poured billions and billions and billions of dollars in retained earnings, and several billion of additional equity,” into the energy business, said the 83-year-old Warren Buffett yesterday in Las Vegas at the Edison Electric Institute’s annual convention. “And we’re going to keep doing that as far as the eye can see.”
Berkshire Hathaway Energy owns and operates pipelines of natural gas from Texas to the Great Lakes, power grids in the United Kingdom and electric utilities in states that include Nevada and Oregon. This company has committed over $15 billion into renewable energy products, like a California solar farm that will be one of the biggest in the world after completion in 2015. During the conference, Buffett also mentioned that Berkshire could easily invest another $15 billion into projects such as this, aided by US tax benefits that help to reduce carbon emissions.
Recently, Buffett has been shifting his focus into capital intensive businesses like transportation and energy, reducing Berkshire Hathaway’s reliance on stock picking and insurance operations. He tells us that utilities are an excellent way to preserve wealth since he first entered into this industry roughly 15 years ago.
“So far, we’ve stayed rich,” said Warren Buffett.