3 Comments

Are you freaked out by the BHE comments Buffett made in the letter? Some folks on message boards are selling out their entire positions because of that comment it would appear.

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It’s a concern but I can’t imagine selling my position because of it. Buffett was warning regulators and politicians in the letter. How likely is it for state run utilities to come up with the capital needed to improve the grid without ruinous rates and/or huge tax hikes? Very low imo. The fines, while annoying if they are not overturned, are not large enough to move the needle for Berkshire as a whole. Each utility has its nonrecourse debt. The holding company cannot be touched. I’m planning to write more about BHE soon, although I am behind on the pace I was hoping for this week. MSR article should go out this afternoon.

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Feb 28Liked by The Rational Walk

Thanks for the reply. I thought the folks selling out were overreacting to the BHE news as well.

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