This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Following Buffett's Lead in Wind Energy

NEW YORK ( TheStreet) - Warren Buffett's recent exposure to the wind energy industry has taken center stage and stolen headlines. Using ETFs, investors can follow Buffett's lead and gain exposure to companies which work to harness and profit from the power of wind.

Energy is not a new venture for Buffett. On the contrary, through a number of his investments and subsidiaries, Warren Buffett has expanded his investment reach into various corners of the energy industry. Boasting exposure to companies including Exxon Mobil (XOM - Get Report), ConocoPhillips (COP - Get Report) and Burlington Northern Santa Fe Railroad, the famous investor has for years held direct and indirect exposure to various traditional fuel sources, including oil and coal.

The alternative energy industry is not excluded from Buffett's portfolio, either. Well known components of the Buffett's Berkshire Hathaway (BRK.A - Get Report) portfolio, including General Electric (GE - Get Report) and BYD have been major players in the growth of clean tech and energy industries such as wind, solar, and battery power in recent years

MidAmerican Energy Holdings, a notable subsidiary of Berkshire Hathaway, has also been steadily increasing its stake in the alternative energy picture. Recently, the firm unveiled its massive plan to further step up its wind presence by installing nearly 600 megawatts of wind power in Iowa.

The energy created by the more 250 turbines will be enough to power 190,000 homes. According to a MidAmerican spokesperson, when the installation of the turbines is complete, the percentage of the company's capacity that comes from wind will stand at 25%.

Today, there are a number of ETF products available which seek access individual components of the alternative energy spectrum from a pure-play perspective. For instance, investors looking for concentrated exposure to the wind energy industry can turn to a fund such as the First Trust ISE Global Wind Energy ETF (FAN).

However, rather than using such a concentrated fund to fulfill demand for alternative energy, conservative investors may find a product like the PowerShares Wilderhill Clean Energy Portfolio (PBW) more to their liking.

As we have seen over the past year, it is not uncommon to see heavily concentrated alternative energy funds such as FAN and Guggenheim Solar ETF (TAN) see dramatic day-to-day swings. In an attempt to tone down the volatility of these industries, PBW's assets are spread across a number of different facets of the clean energy sector.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BRK.A $195,500.00 0.00%
COP $51.19 0.00%
FAN $10.54 0.00%
GE $25.47 0.00%
PBW $4.26 0.00%


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs