Why did Warren Buffett pay $44bn for a ticket to ride? - TelegraphSaw this interesting comment about wind and solar energy (not written by Buffett, though):
Let's not forget that energy storage is quickly becoming a piece of the energy puzzle. As a company which stores and transports unsold energy from wind and solar producers, the train is our "Supertanker", bringing the energy in SeaLift containers to our facilities via road, rail, barge and ship.
Tactical use of stored wind and solar energy is expensive, however, it requires about $360 per linear foot to put in high voltage transmission lines, so even the current $500 per Kwh cost of storage would be competitive, though not very profitable. As the cost of storage is expected to be 1/3 of the current cost in 3 to 5 years, the more volume you can move, the more energy you can deliver-all without nuke, gas or coal plants being built. Many energy "farmers" would otherwise remain "off-the-grid". After storing this energy it can be moved anywhere it is needed and can fetch a higher tariff, like from a wind farm into a major metro area. Perhaps as Mr Buffett owns a mid-American power utility and a chunk of GE and BYD Cars (China), he is also thinking about the future of transportable green energy (which could also power the train BTW) and its by-products.
The problem with this magic formula is that it does not prevent you from selecting losers. It’s a pure statistic method which, as far as we are concerned, is open to further improvement.
Determining which stocks are undervalued or which are justly beaten up, is a very difficult task, which we believe is best executed by people who know the company very well, the insiders. What’s even more important about inside tradings is that when executives bought shares in their own companies, the stock tended to outperform the total market by 8.9% over the next 12 months. Conversely when they sold shares, the stock underperformed the market by 5.4% (Nejat Seyhun, a renowned professor and researcher in the field of insider trading at the University of Michigan).