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Wednesday, July 24, 2019

Berkshire Hathaway Inc Essay Example | Topics and Well Written Essays - 500 words

Berkshire Hathaway Inc - Essay Example Buffett claims that the prices of gas have to increase in order for the company to have the ability to pay its debts. He does not end the interview without mentioning that he made a big mistake by purchasing BNSF because the energy future was facing bankruptcy simply because of their unpaid loans that were maturing. However, Buffett always has plans to reduce prices of gas in the future, such as seen when he agrees to a purchase price, which is the first solar plant, which will be offering the cheapest electricity in the U.S. Therefore, NV energy agrees to give just $0.0387/KWh for solar electricity that is from the 100 MW play a solar 2 projects which are being in U.S by the thin film company first solar. In addition to that, the NV energy power price is now entitled to be as low as possible.Buffett usually emphasizes on investing in companies, which will be more profitable for several decades, this is seen through the Suncor Company, which is profitable in all environments as when oil profits are lower, the initial downstream profits of the company tend to help in compensating their upstream losses. Rail freight and truck freight is almost the same, but the only difference depends on the commodity being transported, maximum speeds, loading and also stopping patterns like braking (Lei, n.d.). However, in most cases, rail freight is normally more energy efficient than the truck because of the low rolling resistance of the steel wheel that moves on a steel rail.

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