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Is Warren Buffett / Berkshire Hathaway *too* long coal?
In 2019:
- 27% of Berkshire Hathaway Energy's "net owned capacity" is coal-fired plants
- 17% of BNSF's rail revenues were from coal
- Precision Castparts makes parts for coal plants (how material is this? I don't know)
In 2019:
- 27% of Berkshire Hathaway Energy's "net owned capacity" is coal-fired plants
- 17% of BNSF's rail revenues were from coal
- Precision Castparts makes parts for coal plants (how material is this? I don't know)
Has Buffett been investing in melting ice cubes? This is from the 2015 letter to investors. These warnings seem ever-closer today. Dealerships *will* hurt from autonomy, but electrification is a much nearer threat. Interestingly, he seems to be short electric battery tech:
If you lean against the future, the future will always win. Storage costs for electricity have come down a lot, and Buffett says it'll hurt Berkshire, while the CEO of Nextera (a competing utility) sees it as an opportunity: https://twitter.com/MarceloPLima/status/1224765393279102976?s=20
Berkshire Hathaway Energy has been slowly shedding coal plants and leaning into wind, but curious to understand why battery storage is a negative for the company...
Sounds like Buffett could deploy a lot of capital into energy storage, if only it didn't hurt Berkshire (see above in this thread for context). Here's Nextera's latest earnings call:
