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Chris Bloomstran - Taking Principled Stances

The Business Brew

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Berkshire Utilities Earning Teams Returns on Capital

Berkshire has the high class problem of retaining every damn dime of profit that it makes. They'regetting regulated returns on high single digit, call it ten per centre s in a world of very low interest rates. Their driving their borrowing costs down theyr, lengthening the duration of their debt structure. Those businesses are appropriately levered. I look at berkshire as a bond surregate. It's a very predictable, kind of a ten rwe business. And if i don't overpay for it, i can sit back and count on a very predictable return. Because these are businesses that are not being disrupted, not being dislocated. The utilities are earning tenish returns

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