MidAmerican has a 22% return on equity. It also owns the majority of shares of HMSV, HomeServices.Com, the second largest chain of real estate brokerages companies in the U.S. which is also offering many other home services through their website. BRK is in the dot.com business with a real, cash flow positive model.

Peter Kiewet and Sons along with Walter Scott also control Level 3 Communications (LVLT) and RCN Holdings (RCNC) which respectively are building the world's largest business to business and residential fiber optic networks based on IP (Internet Protocol) technology. The networks will be built out by 2003 and could become the largest communications network in the world. Because Scott also owns about 20% of MidAmerican, and MidAmerican will be offering all sorts of services to homes that they are connected to, this close relationship will help MidAmnerican to become a leading purveyor of services (telephone, cable, data, security, lawn care, electronic channels, etc.) to homes and businesses and could lead to it being purchased by Level Three of RCN Holdings. Either way, we will have help developing MidAmerican.

I am a shareholder of HMSV, LVLT and RCNC. I am betting on management in each and I believe that they will have a sustainable competitive advantage because they are the only long distance and short distance communication networks that are 100% based on IP protocols as opposed to the others that are a combination of circuit switched technology IP protocols, and the fact that Peter Kiewet and Sons, a tremendously successful builder of communications networks (they built and sold MFS Communications to WorldCom) is behind both companies.

The Omaha Gang of Buffett, Sokol (MidAmerican), Walter Scott (MidAmerican, Level 3 and RCN and HomeServices.Com) and David McCord (RCN) and James Crowe (Level 3 and founder of MFS along with Peter Kiewet and Sons) are major league champions at building great businesses and increasing shareholder value.

It's like betting on the 1927 Yankees. As a New Yorker, I am proud to say that I am betting on a bunch of tough hicks from Omaha.

<<Peter Kiewet and Sons along with Walter Scott also control Level 3 Communications (LVLT) and RCN Holdings (RCNC) which respectively are building the world's largest business to business and residential fiber optic networks based on IP (Internet Protocol) technology. The networks will be built out by 2003 and could become the largest communications network in the world.>>

The network aspect is very interesting. Maybe MEC will not only sell communications related services to their customers, but actually allow for fiber optic line right of way? See the speech below starting on about page 3. I had no idea there was so much network building going on in gas/electric utilities. This would seem to be a potential good and profitable fit for the above mentioned companies and MEC?

http://www.ferc.fed.us/intro/oea/brea10-22.pdf

Thanks

Quite interesting!

Could it be that WEB is getting into tech by brute force?