Summary
- Berkshire Hathaway recently made a massive $10 billion purchase of Dominion Energy natural gas assets, adding to a growing energy portfolio.
- In a market where value is difficult, Warren Buffett has continued to do exceedingly well, finding significantly undervalued opportunities.
- The company's growing energy portfolio in an undervalued segment, combined with the strength of the company's overall portfolio, makes it a great investment.
- I do much more than just articles at The Energy Forum: Members get access to model portfolios, regular updates, a chat room, and more. Get started today ยป
Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) is one of the largest conglomerates in the world with a market capitalization of ~$450 billion. The company and its CEO Warren Buffett have been sitting on a growing cash pile of more than $100 billion. The company recently made one of its largest investments in years, a $10 billion investment in Dominion Energy's (NYSE:D) transmission rights.
Buffett and Dominion Energy - YouTube
Berkshire Hathaway Dominion Energy Investment
Berkshire Hathaway made a $10 billion investment in Dominion Energy to acquire 7700 miles of natural gas transmission and storage assets along with 900 billion cubic feet of gas storage. The deal costs $4 billion along with the assumption of $5.7 billion of debt and some associated taxes with the deal as it was made.
The deal represents an expansion of Berkshire Hathaway's energy assets, not surprising in a market where value is cheap to buy. Specifically, the offered assets are as follows:
