Sokol Pegs Berkshire’s Utility ROE at 11% et al.

According to David Sokol, over the past ten years Berkshire Hathaway has earned an ROE of about 11% on its regulated energy investments – (Video from Fortune’s Brainstorm Green Virtual Conference) (see 19:50 minute mark). Sokol acknowledges that this is a good (not great) business.

In my view, 11% can still be a nice return when you have access to insurance float at zero or negative cost.

Buffett is on record that Berkshire Hathaway will invest billions in the utility business going forward. Understanding the regulated utility business and its rates of return are necessary to estimate Berkshire’s intrinsic value and what the company may look like in ten years.

Interesting investment research tool (Alacra Pulse)

Barron’s cover story makes the case that Google is cheap (Looking Up)

If you’re interested in Google, Henry Blodget’s articles on Google are worth reading:

Google to $2,000 a Share? – Business Insider

So, Is Google Still Going To $2,000 A Share? – Business Insider

Microsoft Is Trashing Us For Not Eating Enough Crow About Bing’s Market Share Gains–So We’ll Eat A Bit More Crow – Business Insider

Full Disclosure: The author owns shares of Google.