American Electric Power Company, Inc. (AEP), Xcel Energy Inc (XEL): Buffett’s Green Energy Profit

The combined impact
Last year, these two businesses accounted for $9.8 billion of capital spending by Berkshire Hathaway Inc. (NYSE:BRK.A), making them the two largest uses of capital in Buffett’s empire. Where PacifiCorp is expected to slow spending, MidAmerican is expected to accelerate before it too slows spending. As an indicator for investors, contracting spending can be seen as a mark of the company’s discipline and solid position in the market. If the BNSF pilot is successful, the railroad will need to undertake a major spending glut, but the long-term benefit could drive growth for years.

Buffett’s ability to navigate complex markets in essentially “dirty” industries, while maintaining a green spin on each, is a further testament to the genius of the Oracle of Omaha and those who work with him. From an investment perspective, Berkshire Hathaway Inc. (NYSE:BRK.A) continues to provide shareholders with growth and stability.

The article Warren Buffett’s Green Energy Profit originally appeared on Fool.com.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Clean Energy Fuels (NASDAQ:CLNE).

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