Will Solar Power Be the Next Big Hit For Warren Buffett?
Warren Buffett has long been seen as one of the titans of the finance industry. CEO of Berkshire Hathaway, billionaire and master strategist, when Warren Buffett identifies a good investment, the whole financial community sits up and takes notice.
As a result, when Buffett-backed company, MidAmerican Renewables, began snapping up some of the biggest solar-energy projects around, questions began to arise. Will these moves indicate a significant uptick in the solar-energy industry? Will other companies and investment firms follow suit? Why is he making these investments now?
The reasoning behind his decisions are, just like virtually all of his other investments, right on point.
Moving Forward
Buffett’s primary focus is now the future. While solar and other forms of renewable energy may not generate the profits seen in many of the investments made early in his career, the fact that these industries offer more opportunities for both reinvesting and solidifying further acquisitions, puts them in the perfect place for his future-oriented goals.
Substantial Need
Traditional energy sources, such as fossil fuels, are finite in nature, making the need to find alternate sources a prime concern. This deals not only with the availability of traditional sources. For example, the EPA standards for reducing carbon emissions will prompt energy companies to cut these emissions by 30 percent by 2030.
What this means for consumers is an increase in energy cost as providers seek to offset charges and costs of the tech that will provide these reductions. Finding an alternative could save the average household plenty of money in upcoming years.
Conclusion
We will have to wait a while to see how well Buffett’s investment into solar power will finally pan out. However, given his background and place at the top of the pile in investment strategies, it is safe to say that renewable energy just got its most valuable champion. Do you agree? Let us know in the Comments section below!