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• The Pickens Plan Changes Its Strategy

  Jeff Wilson submits: If you’ve been paying attention, you will notice a major change in the Pickens Plan. The original plan was this: Use wind energy to replace the use of natural gas in generating electricity, and take the saved natural gas and use it in compressed natural gas cars, like the Honda GX (NYSE: HMC), to replace gasoline. This shift would greatly reduce the amount of oil that we need to import. T. Boone Pickens said that this would get us started toward energy independence while we are waiting for the development of other technologies like plug-in electric cars, which he described as ‘not quite there yet’. Complete Story » Posted Monday, November 17, 2008 7:15 AM Filed under: CHK, CLNE, BRK.A, BRK.B, Jeff Wilson

• With Great Values Now In the Markets, the Glass Is Half Full

  Bill Cara submits: I have warned that the consumer sector will continue to suffer from the “no tickee” syndrome. That’s what happens when job layoffs and credit withdrawals and underwater mortgages become primary issues in the lives of tens of millions of people who recently were being told they are richer than they think. Until the people start to look ahead to the day when they will come home with tickee, traders have to avoid the consumer sectors. Complete Story » Posted Thursday, October 16, 2008 10:05 AM Filed under: BRK.A, BRK.B, Bill Cara

• Buffett Buys into Constellation: Watching a Master at Work

  Investment U submits: Last week, I suggested you ignore Washington and "the bailout," and do what great investors such as Warren Buffett do in times of crisis - buy stocks. Based on reader response, you would have thought I recommended investing in the Titanic, and doubling down on the Hindenburg. My email inbox was full of remarks from people who thought I had lost my mind. Complete Story » Posted Sunday, October 05, 2008 7:05 AM Filed under: BRK.A, CEG, Investment U, BRK.B

• Buffet Scoops Up an Energy Casualty

  Greentech Media submits: By Daniel Englander The financial crisis has claimed its first major energy casualty. Warren Buffet beat out French energy giant EDF to buy cash-strapped Constellation Energy (CEG) for a pittance this evening. The utility and power trading company’s stock dove 58 percent over three days this week, pushed down by liquidity fears and a downgraded credit rating. Sound familiar? Buffet’s MidAmerican Energy will buy Constellation for $4.7 billion after Constellation’s board rejected an offer from EDF, which owns 9 percent of the power trader, for a $500 million cash infusion. Complete Story » Posted Friday, September 19, 2008 8:58 AM Filed under: BRK.A, CEG, Greentech Media, BRK.B

• Constellation Energy's Stars Align for Buffett

  Dah *** Lau submits: Warren Buffett’s ability to act swiftly in buying Constellation Energy Group (CEG) for $4.7 billion is truly amazing. At the beginning of the year, Constellation traded for over $100 and its shares had slumped below $25 prior to Buffett’s acquisition announcement. At a $26.50 take-over price, Buffett is paying about an $11.5 billion price tag for Constellation, including net debt and retirement obligation. LTM EBITDA: $1,925 million, which means Buffett paid less than 6 times EBITDA for Constellation. By the way, property, plant and equipment [PPE] are worth $10.4 billion alone. The great lessons from Buffett and Munger are: Complete Story » Posted Friday, September 19, 2008 7:41 AM Filed under: BRK.A, CEG, BRK.B, Dah Hui Lau

• Constellation: Buffett's Smart Buy

  Felix Salmon submits: Amidst the craziness in financial markets right now, there's only one thing that's certain: When it comes to valuations, nobody knows anything. Morgan Stanley (MS) can be cheap one day at $30 a share and then expensive the next day at $20: Everything is incredibly fluid, and trying to make long-term investment decisions in the eye of a hurricane is a great way to lose a lot of money very fast. For that reason, I admire Warren Buffett's decision to sit this crisis out on the sidelines and not give in to the temptation to try to buy financial assets on the cheap. Yes, he's a value investor -- but values change over time, and Buffett likes the kind of assets where values rise slowly over the course of years, rather than falling precipitously over the course of minutes. Complete Story » Posted Thursday, September 18, 2008 3:13 PM Filed under: Felix Salmon, BRK.A, CEG

• Buffett's MidAmerican Energy To Buy Constellation

  Trader Mark submits: Well that is unfortunate - we are going to lose 10% or so as Constellation Energy (CEG) was forced to sell out ... and only got $26.50. Congrats to short sellers for nailing another company. This was a $65 stock a week ago - looks like MidAmerican got a steal since Constellation was desperate as the S&P rating agency was forcing its hand. Once they downgrade the debt, a death spiral ensues in this market.   MidAmerican Energy Holdings Co. has reached a deal to buy Constellation Energy Group for $4.7 billion. Des Moines, Iowa-based MidAmerican will pay $26.50 per share for Baltimore-based Constellation. The two companies plan to sign a definitive merger agreement by the end of business Friday. The deal was unanimously approved by both companies' boards, but still requires approval from shareholders and governmental officials and is expected to close within nine months. Complete Story » Posted Thursday, September 18, 2008 3:05 PM Filed under: Trader Mark, BRK.A, CEG

• Dow's Q3 vs. the Price of Oil

  Todd Sullivan submits: Now that August is in the books, let's look at where we are and update some of my previous thoughts: In the call, the following exchange was had: Jeffrey Zekauskas - JPMorgan: "Good morning. On average shouldn't your raw material costs be down sequentially in the third quarter? Natural gas has gone from -- I don't know -- $12 to $9 and oil has come from $135 to $125?" Complete Story » Posted Thursday, September 04, 2008 5:33 AM Filed under: USO, ROH, BRK.A, Todd Sullivan, DOW

• Canadian Oil Sands: Gates and Buffett Visit

  Ron Haruni submits: Warren Buffett and Bill Gates toured this week the Canadian Natural Resource Ltd’s  (CNQ) Horizon oil sands project. The $8.7 billion development involves the extraction of oil sands reserves 70 km north of Fort McMurray, Province of Alberta. The men, according to Reuters, were given details on the Canadian oil industry by the Canadian Association of Petroleum Producers (CAPP). Greg Stringham, vice president of markets and fiscal policy at the association, said “they were asked to come up and do a short presentation”. Complete Story » Posted Friday, August 22, 2008 1:47 PM Filed under: COP, XOM, SUN, CVX, BRK.A, CNQ, Ron Haruni

• Lundin: The Biggest Family in Natural Resources

  Do you know the Lundins? Unbeknownst to most U.S. investors, a single family has been behind many of the largest natural resource discoveries and natural resource deals of the last 80 years. Complete Story » Posted Thursday, July 31, 2008 11:18 AM Filed under: BRK.A, Graham Summers, LMC, ATAAF.PK