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No. of Recommendations: 9
Anyone concerned?


Exact opposite.

I think it is absolutely wonderful the Berkshire, which in general produces a gusher of cash that overwhelms it, has an endless field in which to plant for future harvest. This won't produce any homeruns, but is essentially certain to produce an endless stream of base hits. The utilities are the quintessential Berkshire: all-but-guaranteed reasonable after-inflation returns, regardless of how much $#it hits the fan.

The fact that Greg Abel will likely be running this for as far as the eye can see is just icing on the cake.

I look forward to the day when a third of Berkshire's earnings power comes from such an utterly reliable subsidiary.


This sector, industry is ripe for economic, technological, regulatory risk.


What economic risk? No matter what happens, society will need electricity.

Technological? Well, who do you think will implement that new technology? Who has both the capital + industry expertise? Indeed, technological disruption is desperately needed in our energy grid. And BHE has been and will be busy providing it. Just ask those in Iowa who are fortunate enough to live or do business in BHE's territory, rather than the old-school providers.

(Note re: techonolgy: maybe Elon Musk should merge his battery-technology ambitions with BHE's enormous capital? He may have great ideas, but without the enormous capital required, it's hard to implement. I've not followed this closely, but I hear Apple may have a battery-technology-card up it's sleeve...and they obviously have the capital. Oh yeah...Berkshire owns 1/20 of Apple!)

Regulatory? Maybe. But what regulators are going to wants to impede such a force for good as BHE? All those politicians constantly talking about investments in renewable energy and an upgraded energy grid? Why? Someone has to provide energy to the voters. If you're someone whose main goal in life is to keep your government/regulator job, why would you want to make life hard for BHE??
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