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Doing good for climate is a valid business strategy, not a philantropy. Long-term investors should factor in their models that carbon heavy industries will be

Doing good for climate is a valid business strategy, not a philantropy. Long-term investors should factor in their models that carbon heavy industries will be negatively hitted by regulations and taxes. Especially as climate change will get worse and younger generations already overwhelming support such meassures. Leading world economists such as Jeremy Rifkin points out that carbon assests will likely be stranded and this may be the biggest bubble of our times.

brians 7y ago
That’s not a strategy. It’s an observation. It’s an important observation! Now what do we do about it? Discounting carbon heavy industries is one move. How much? When will those heavy costs hit? My own preference is to start coffee farming in North America, to offset the coming end of global shipping. What year will that be, so I can have my crop ready?
- davedx 7y ago
  My strategy is investing in renewable energy shares. So far I am long Vestas, Siemens Gamesa, and Tesla. It’s early to tell if this is a viable long term strategy as carbon assets become stranded etc.
- ghostbrainalpha 7y ago
  There will be small market for your backyard craft coffee...but Coffee requires a very particular environment to grow, so you are going to spend more energy adapting your local environment to produce coffee that is expended by the shipping of coffee. What I think will happen is someone will make a completely artificial "coffee flavor" beverage, with added caffeine that the mass market prefers to coffee and doesn't require importing coffee beans.
  - stallmanite 7y ago
    Re: artificial coffee substitutes are you talking about something like Postum? I’m trying to imagine a palatable take on modern energy drinks adapted to be served hot but my imagination is failing me. https://en.m.wikipedia.org/wiki/Postum https://en.m.wikipedia.org/wiki/Postum
- pochamago 7y ago
  I genuinely cannot imagine a world where global shipping were to end. At absolute worst, we could return to sailing to accomplish it.
  - dwaltrip 7y ago
    I did a bit of research and hydrogen fuel cells look to be the most promising alternative to diesel powered shipping. Batteries are a no go, they would be need to be 10x more energy dense than they are today (which is very unlikely to happen anytime soon).
blargmaster33 7y ago
Younger generations have indeed been brainwashed into believing in climate change.
akiselev 7y ago
Since Buffett generates much of the cashflow he uses for investments from his insurance businesses (and re-re-re~...~insurance), I'm assuming he is acutely aware of the financial risk he faces from climate change. This is definitely good business for him.
berniepebbles 7y ago
Food for thought: - How would you explain Warren’s (Berkshire Hathaway’s) recent investment in OXY? (Occidental Petroleum) Bad business/ investing strategy? - What do people who claim to know things about the environment know about investing? People need humility when the operate outside their domains. I think programmers and HN community are guilty of this, specifically on the climate issue. “I can build a system with users so I know the correct action for government to take to solve climate change.” Side note: It’s so funny that you mention the adjective “leading”. Who decides that? That language always triggers the BS filter. - Has that leading economist ever thought about oil and gas as a national security issue? Younger generations overwhelmingly support climate change because there are incentives to develop support for the issue. Our public schools in the US do this. Why not target a malleable mind? Greta thinks we should stop using airplanes. Leonardho Dicaprio flys his private jet to French parties or whatever hollywood types enjoy doing, yet lectures others on how they should behave regarding the climate. Let’s hold back human progress because I know what is best for all. One thing that bothers me is climate activists frequent reach for the government as a tool to disincentivize business. I don’t disagree that humans have materially changed the constituents of the earth. I disagree on the solution of using government to create more regulation. People don’t seem to understand the value in trade offs with energy. Any comments on Elon creating a rocket company? How are rockets propelled? Following Greta’s logic, she thinks we shouldn’t launch rockets because it isn’t carbon neutral.

brians 7y ago

That’s not a strategy. It’s an observation. It’s an important observation! Now what do we do about it? Discounting carbon heavy industries is one move. How much? When will those heavy costs hit? My own preference is to start coffee farming in North America, to offset the coming end of global shipping. What year will that be, so I can have my crop ready?

davedx 7y ago
My strategy is investing in renewable energy shares. So far I am long Vestas, Siemens Gamesa, and Tesla. It’s early to tell if this is a viable long term strategy as carbon assets become stranded etc.
ghostbrainalpha 7y ago
There will be small market for your backyard craft coffee...but Coffee requires a very particular environment to grow, so you are going to spend more energy adapting your local environment to produce coffee that is expended by the shipping of coffee. What I think will happen is someone will make a completely artificial "coffee flavor" beverage, with added caffeine that the mass market prefers to coffee and doesn't require importing coffee beans.
- stallmanite 7y ago
  Re: artificial coffee substitutes are you talking about something like Postum? I’m trying to imagine a palatable take on modern energy drinks adapted to be served hot but my imagination is failing me. https://en.m.wikipedia.org/wiki/Postum https://en.m.wikipedia.org/wiki/Postum
pochamago 7y ago
I genuinely cannot imagine a world where global shipping were to end. At absolute worst, we could return to sailing to accomplish it.
- dwaltrip 7y ago
  I did a bit of research and hydrogen fuel cells look to be the most promising alternative to diesel powered shipping. Batteries are a no go, they would be need to be 10x more energy dense than they are today (which is very unlikely to happen anytime soon).

blargmaster33 7y ago

Younger generations have indeed been brainwashed into believing in climate change.

akiselev 7y ago

Since Buffett generates much of the cashflow he uses for investments from his insurance businesses (and re-re-re~...~insurance), I'm assuming he is acutely aware of the financial risk he faces from climate change. This is definitely good business for him.

berniepebbles 7y ago

Food for thought: - How would you explain Warren’s (Berkshire Hathaway’s) recent investment in OXY? (Occidental Petroleum) Bad business/ investing strategy? - What do people who claim to know things about the environment know about investing? People need humility when the operate outside their domains. I think programmers and HN community are guilty of this, specifically on the climate issue. “I can build a system with users so I know the correct action for government to take to solve climate change.” Side note: It’s so funny that you mention the adjective “leading”. Who decides that? That language always triggers the BS filter. - Has that leading economist ever thought about oil and gas as a national security issue? Younger generations overwhelmingly support climate change because there are incentives to develop support for the issue. Our public schools in the US do this. Why not target a malleable mind? Greta thinks we should stop using airplanes. Leonardho Dicaprio flys his private jet to French parties or whatever hollywood types enjoy doing, yet lectures others on how they should behave regarding the climate. Let’s hold back human progress because I know what is best for all. One thing that bothers me is climate activists frequent reach for the government as a tool to disincentivize business. I don’t disagree that humans have materially changed the constituents of the earth. I disagree on the solution of using government to create more regulation. People don’t seem to understand the value in trade offs with energy. Any comments on Elon creating a rocket company? How are rockets propelled? Following Greta’s logic, she thinks we shouldn’t launch rockets because it isn’t carbon neutral.