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I have a feeling that this is not an investment to Buffet, but rather a means for him to influence the market. People now follow his investments religiously, an

I have a feeling that this is not an investment to Buffet, but rather a means for him to influence the market. People now follow his investments religiously, and an investment like this in to solar could spur a lot of people to make similar capital investments. In effect, Buffet is now making a demand for green companies for copy-cat investors to invest in.

loumf 14y ago
If by "not an investment", you mean that he doesn't believe that it will throw off more net-present value cash than a similar investment in the S&P, then I strongly disagree. He may think that it would not have done that without his investment -- so it could be both, but Buffet promises investors that cash will be deployed more efficiently than you could by just buying an S&P index fund.
- mmanfrin 14y ago
  Sorry, I should clarify :] I don't think this isn't an investment, but I think there were motivations beyond purely investment; and having heard him speak and read what he has written, I am taking a guess that he was motivated out of an idea to influence good (while still making a sound investment).
justincormack 14y ago
What evidence have you got for this? He runs a public company, and demanding stuff is not really what he does, he is out to make money.
thebmax 14y ago
Solar energy investments are financed through tax incentives. Buffet is doing this to reduce his tax bill.
- joeag 14y ago
  Nope. The tax incentives go to the investor involved in building the project and are usually captured by a bank that trades the tax credit for an equity investment which lasts for about 5 years (the minimum period to avoid recapture).
eupharis 14y ago
This does not sound like Buffett's style at all, from what I have read in his collective essays: http://www.amazon.com/The-Essays-Warren-Buffett-Corporate/dp/0966446127/ref=sr_1_4?ie=UTF8&qid=1357248365&sr=8-4&keywords=warren+buffett http://www.amazon.com/The-Essays-Warren-Buffett-Corporate/dp... He is incredibly passionate about capitalism. Especially smart capitalists responding to pricing signals intelligently. And the symbiosis of good management and good investors to keep companies efficient, take smart risks, and earn consistent, healthy returns. Making huge, counter-intuitive investments is nothing new for Buffett. (Railroads anyone?) I imagine he is doing this for the reason he usually does: he thinks he is getting a huge amount of value for a low price.

loumf 14y ago

If by "not an investment", you mean that he doesn't believe that it will throw off more net-present value cash than a similar investment in the S&P, then I strongly disagree. He may think that it would not have done that without his investment -- so it could be both, but Buffet promises investors that cash will be deployed more efficiently than you could by just buying an S&P index fund.

mmanfrin 14y ago
Sorry, I should clarify :] I don't think this isn't an investment, but I think there were motivations beyond purely investment; and having heard him speak and read what he has written, I am taking a guess that he was motivated out of an idea to influence good (while still making a sound investment).

justincormack 14y ago

What evidence have you got for this? He runs a public company, and demanding stuff is not really what he does, he is out to make money.

thebmax 14y ago

Solar energy investments are financed through tax incentives. Buffet is doing this to reduce his tax bill.

joeag 14y ago
Nope. The tax incentives go to the investor involved in building the project and are usually captured by a bank that trades the tax credit for an equity investment which lasts for about 5 years (the minimum period to avoid recapture).

eupharis 14y ago

This does not sound like Buffett's style at all, from what I have read in his collective essays: http://www.amazon.com/The-Essays-Warren-Buffett-Corporate/dp/0966446127/ref=sr_1_4?ie=UTF8&qid=1357248365&sr=8-4&keywords=warren+buffett http://www.amazon.com/The-Essays-Warren-Buffett-Corporate/dp... He is incredibly passionate about capitalism. Especially smart capitalists responding to pricing signals intelligently. And the symbiosis of good management and good investors to keep companies efficient, take smart risks, and earn consistent, healthy returns. Making huge, counter-intuitive investments is nothing new for Buffett. (Railroads anyone?) I imagine he is doing this for the reason he usually does: he thinks he is getting a huge amount of value for a low price.