BUY WIND LIKE BUFFET

Following Buffett's Lead in Wind Energy
Don Dion, January 7, 2011 (The Street)

"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…[T]hrough a number of his investments and subsidiaries, Warren Buffett has expanded his investment reach into various corners of the energy industry…Well known components of the Buffett's Berkshire Hathaway(BRK.A) portfolio, including General Electric(GE) 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."

Iowa's wind capacity has grown along with Mid-American's investments. (click to enlarge)

"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…[W]hen the installation of the turbines is complete, the percentage of the company's capacity that comes from wind will stand at 25%."

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"…[I]nvestors 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)…[C]onservative investors may find a product like the PowerShares Wilderhill Clean Energy Portfolio(PBW) more to their liking…[I]t is not uncommon to see heavily concentrated alternative energy funds such as FAN and Guggenheim (TAN) to see dramatic day-to-day swings…

"…PBW's assets are spread across…wind-related firms such as China Wind Energy(CWS), China Ming Yang Wind Power Group(MY) and Broadwind Energy(BWEN)…[as well as] the solar, battery and rare earth elements industries…Over the past 90-day period, the fund's broad approach has allowed it to handedly outperform both FAN and TAN, returning 25%…"