Berkshire Hathaway has $128 billion in cash on its balance sheet. But Warren Buffet and Charlie Munger (who turned 96 this week) can’t find anything to buy, or anything that’s cheap at least. Enter solar.
Barron’s reports that a Berkshire subsidiary, NV Energy, is building the largest solar plant in the US. The project, code-named Gemini, is located about 25 miles. Along with two others, it would generate enough power for 230,000 homes.
Buffett is betting that renewables like solar will become cost-competitive with fossil fuels (measure by cost per megawatt hour). Electricity doesn’t grow on trees. While Buffett bets on solar, we’re betting that oil and energy (especially the XLE sector fund) have a big 2020.