While I'm always impressed at Buffett's eye for value, I must admit
that recently I have been taking my cues from a new rising star in the
investment world. He's been using his influence to help usher in an
economic revolution, all while net worth skyrockets.
Who is this savvy investor, the man who some (actually, just me) have dubbed the "Prognosticator of Nashville?"
Drumroll please ...
Depending on your
political affiliation, the words "Al Gore" sound either pleasant or
painful to your ears. But we would be wise to keep our eyes on what he
is doing these days. After all, Mr. Gore was a major architect of the
development of the Internet in the 1990's. His political opponents may
snicker about claims of 'inventing' the Internet, but history shows
that government policies directing Federal dollars toward technology
research, as well as tax incentives for businesses, helped lay the
groundwork for the tech revolution. Al Gore, like him or not, was an
integral part of this effort.
Now, the former Vice President is one of the leading advocates of the Green Revolution
-- a conscious government effort akin to the development of the
Internet, aimed at making renewable energy and clean technologies a
reality. Just last month, President Obama stood in Florida with
executives from FPL Group (NYSE: FPL) and Florida Power and Light
to commission the largest photovoltaic solar power plant in the
country. On the occasion, Obama also announced $3.4 billion in Federal
grants to help update the electric grid by funding more smart meters
and better network management. This is another milestone in the shift
to a green economy.
Put your money where?
As a private citizen, Al Gore can now put his money where his mouth is. According to a recent New York Times
article, his venture capital partnership is invested in a small smart
metering company that will benefit from the recently announced grants.
In addition, Gore has stakes in companies making electric vehicles,
solar power, and a carbon trading exchange. He stands to profit
handsomely as the U.S. economy shifts to a less carbon-intensive
platform. Some are even predicting that he will be the world's first
"carbon billionaire."
But let's go back to Buffet, who is a billionaire, and who
also has a green streak. His purchase of Burlington Northern is a vote
of confidence in the Green Revolution. Railroads, as Burlington tells
us, "move 40 percent of our nation's freight, but account for just 2.2
percent of all transportation-related greenhouse gas emissions."
Buffett noted that in a fossil fuel-challenged world, rail has a
competitive advantage over trucking because it is more fuel-efficient
and greener. Even Norfolk Southern (NYSE: NSC) and CSX
are already developing hybrid locomotive technologies. Coming
legislation to reduce carbon pollution could accelerate that push.
Buffett is partially following the Gore investment thesis that
carbon reduction will mean increased profits. A more unlikely pairing
than the Oracle of Omaha and Mr. Inconvenient Truth is tough to imagine.
The revolution marches on!
Buffett and
Gore are just two foot soldiers in this new green tech revolution. Big
companies are also getting behind this massive shift in the economy.
Conglomerates like General Electric (NYSE: GE) and Siemens are developing an array of green technologies in lighting, appliances, and battery technologies. Cisco Systems (Nasdaq: CSCO) and IBM (NYSE: IBM) are major players in managing smarter electricity infrastructure.
But these are big names that are widely followed, and their current size may limit their upside
© 2009 UCLICK, L.L.C.
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