Warren Buffett gives openness about climate strategy

OMAHA (AFN / RTR / BLOOMBERG) – The American multi-billionaire and well-known investor Warren Buffett has given more openness about his climate strategy. In his annual letter to shareholders, Buffett extensively discussed the efforts of his investment vehicle Berkshire Hathaway in the field of wind energy.

Large investors such as Buffett have been under pressure for some time to indicate how they are trying to reduce the impact on the climate with their investments. Buffett pointed out that his company is putting a lot of money into wind farms via Berkshire Hathaway Energy. As a result, dependence on fossil fuels on the portfolio is declining, according to Buffett.

The ‘oracle of Omaha’ also indicated in his letter what should happen to his legacy after his death. The now 89-year-old Buffett, with assets of more than 90 billion dollars, is one of the richest people on earth, and that assets are primarily in Berkshire Hathaway shares. There is a plan in place to reduce its interest over more than a decade and to donate money to charities, so that the course of Berkshire Hathaway is not under pressure.

Succession

Who Buffett and his 96-year-old business partner Charlie Munger will succeed is still officially unknown. Buffett did hint at the names Ajit Jain and Greg Able. They are the head of the insurance branch and the non-insurance activities respectively. Berkshire Hathaway came into the hands of Buffett in the 1960s. He turned the textile manufacturer at the time into a large business empire. The company is nowadays a conglomerate with interests in more than ninety companies. Berkshire Hathaway is for example in American Express, Bank of America and Coca-Cola.

Last year the company achieved a record profit of more than $ 81 billion, almost twice as much as a year earlier. Buffett mainly benefited from investment gains. However, the operational result, which is actually a better indicator for the company, fell by 3 percent to 24 billion dollars. Berkshire Hathaway had approximately $ 128 billion in cash at the end of last year. More than 2 billion dollars worth of treasury shares were recently bought back.

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