This Energy Play Has Warren Buffett Playing Catch-Up

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It's absolute gospel in the world of investing to study and understand the moves that Warren Buffett and Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) are making – and then to follow them for profit.

And with good reason: Buffett's track record speaks for itself – and he augments his capital-markets genius with the homespun, down-to-earth personality that's cemented his spot as a hero to the masses.

One of Buffett's newest forays has taken his Berkshire investment vehicle into the energy sector.

But he wasn't the first to get there. We were. And it's paying off in a big way…

"The Biggest Potential Catalysts of All…"

In a move that acknowledges the "brand power" that Berkshire has amassed in the investing arena, Buffett's outfit this week changed the name of its energy arm from MidAmerican Energy to Berkshire Hathaway Energy.

The bottom line here is that Buffett & Co. has recognized the big profit opportunities available in the "midstream" (delivery) portion of the oil-and-gas market. So you can bet that he and Berkshire Hathaway Energy will be making additional moves to snap up properties in liquefied natural gas (LNG), pipelines, and electricity production.

Once again, Warren Buffett is demonstrating that he's the master investor we all believe him to be. These are all newly lucrative profit opportunities that will only grow in value in the years to come. And there's little doubt that he'll execute to perfection.

Since joining Money Map Press back in 2010, global energy expert Dr. Kent Moors has been talking about the potential for the midstream market, has been predicting the paradigm-shifting potential for LNG, and has been saying that America would be regaining "Energy Independence" for the first time since the Standard Oil days of John D. Rockefeller.

And thanks to the investment recommendations he's been sharing with Private Briefing, you folks have had the chance to cash in alongside his own subscribers.

Even so, as I've told you all many times since we launched this service nearly three years ago, once we've established a position in a stock or have identified a sector as having big-time profit potential, we're only too happy to have Wall Street heavyweights draw the same conclusions. The added attention they bring is a catalyst for higher profits for us since the investment banks, money management firms, and all their customers can deliver the kind of sustained liquidity that will drive up the value of our existing holdings.

And, as investing icons, Buffett and Berkshire can serve as the biggest potential catalysts of all.

So I thought we should take a look at what Team Warren is up to, and have Kent tell us what it means.

Berkshire Hathaway, by Any Other Name

A year ago this month, Berkshire Hathaway's MidAmerican Energy utility said it was spending $5.6 billion to buy NV Energy Inc., a Nevada electric-and-natural gas firm that serves customers through Nevada Power Co. and Sierra Pacific Power Co.

Buffett's folks saw a big opportunity to jump-start NV Energy's growth. MidAmerican has been an enthusiastic investor in renewable energy products, and experts said that experience would help NV Energy create such products in its home state – a sound strategy given that Nevada has a hefty presence in solar, geothermal, and wind resources.

This deal also plays into a broader industry trend.

Join the conversation. Click here to jump to comments…

About the Author

Before he moved into the investment-research business in 2005, William (Bill) Patalon III spent 22 years as an award-winning financial reporter, columnist, and editor. Today he is the Executive Editor and Senior Research Analyst for Money Morning. With his latest project, Private Briefing, Bill takes you "behind the scenes" of his established investment news website for a closer look at the action. Members get all the expert analysis and exclusive scoops he can't publish… and some of the most valuable picks that turn up in Bill's closed-door sessions with editors and experts.

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  1. Richard Berman | May 26, 2014

    I agree about LNG. My question is what about the liquified gas transporters. There are solid companies like GasLog that control the shopping of LNG to Europe and Asa. Do you recommend them as well?

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