Warren Buffet strikes a deal with Dominion Energy after months of being MIA

 Warren Buffet strikes a deal with Dominion Energy after months of being MIA

 

In case you didn’t know, Warren Buffett is the fourth richest man in the world. He is a business tycoon, who started his business over a half a century ago. Even if you haven’t known by now, you must’ve heard his name at least once in your life somewhere.

Warren Buffet (age 89) owns Berkshire Hathaway Inc., and this weekend made its most significant investment in the last four years. Buffet struck a deal with Dominion Energy’s natural gas transmission. It is said that the value of the contract is $9.7 billion. We can’t precisely know what prompted him to do this, but he’s very willing to invest despite the radio silence during the coronavirus’s first wave.

A few things to know about Buffett’s way of business

Buffett made Berkshire into a company that is now estimated to be worth $434 billion. What surprised everyone this weekend was the fact that he stayed put during the crisis. Mister Warren is famous for doing and striking almost incredible deals during most difficult times. He even gave up his stakes in the major U.S. airlines, after he suffered a setback at his company. Many believed he gave up on being a risky but profitable player in the stock market, but he managed to bring the shock value back. He is now determined to invest in all of Dominion Energy’s natural gas transmission, even though there are speculations that there is a debt of $5.7 billion. Buffet stated that he is proud that he can say that he now has a portfolio of natural gas assets. It seems like he sees a commodity opportunity where others aren’t looking: energy.

About Berkshire

Berkshire is a leading company when it comes to the energy business, and this weekend’s purchase can only add and expand its reign. Their operations include states such as Iowa and Nevada. It is also interesting they struck a deal at the lowest point in the market in the last 25 years. It seems like they are trying to move away from fossil fuels since scientists are continually warning us about the climate crisis. By 2050 there should be zero-emissions if we succeed in managing how much carbon footprint we leave, how we take care of nature, etc. The latest deal is considered Berkshire’s most significant investment since 2016.

The next successor?

Greg Abel is the CEO of Berkshire Hathaway Energy, and the Dominion deal is partly his work as well. He also has a role as a vice chairman for all non-insurance businesses. Abel has gained a reputation as a critical dealmaker for Berkshire with the 2013 purchase of NV Energy. He is considered one of the most successful investors in the world, and a successor to Warren Buffet. From 2020, his net worth is estimated at 70.8 billion dollars.

This is a massive change for the stock market, but for the world itself. If they aim to manage carbon emissions, it would mean a lot, not just for other investors but also for humanity and their survival on this planet. This would be a game-changer for electric vehicles, and technology itself. We can’t wait to see where this will lead us next.  

 

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