Why Warren Buffett Loves Renewable Energy

Warren Buffett is one of the largest renewable energy investors in the world, but he doesn't invest in the space because it's clean, he invests because he can make money. Buffett's Berkshire Hathaway (NYSE: BRK-A  ) (NYSE: BRK-B  ) has spent $15 billion building and buying wind and solar farms because they'll pay him consistent cash flows over years, much like a bond. 

He's bought projects from SunPower (NASDAQ: SPWR  ) and First Solar (NASDAQ: FSLR  ) that come with long-term power purchase agreements and predictable rates of return. But spending billions of dollars on renewable energy plants isn't possible for nearly anyone else. 

That's why the YieldCo is a way you can invest in renewable energy without being a billionaire. The first of these to hit the market was NRG Yield (NYSE: NYLD  ) , which has been a huge hit for investors looking for yield. 

Solar specialist Travis Hoium explains you can invest like Buffett -- and there may be more opportunities to do so in the future. 

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  • Report this Comment On July 27, 2014, at 11:28 AM, CMAenergy wrote:

    Anyone who invests in renewable energy and trying to make people believe they are doing a service has to be a full fledged liar!

    If he Warren B thinks he's helping this earth definitely is pulling the wool over your eyes

    First he does not reply to anyone who is doing research in any field that will help do this earth justice

    If he as mentioned cannot see past his nose a dollar, you know he's going to kill you because he doesn't want you to have the next dollar! Why else would he be so rich?

    When a man takes from others, he's taking it off your plate!

  • Report this Comment On August 04, 2014, at 11:56 AM, MayTepper wrote:

    Axiom Maintains Bearish Expectaions On First Solar Ahead Of 2Q14 Results; Reduces PT To $28 http://bit.ly/1lsNGAK

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