a great manager

[philassor]

I thought this article was worth the read:  a "tech" company with a moat (low cost) and a huge market.  A potential rocket stock?

Good enough for buffett with that type of manager at work and despite the tech label. Too bad he could not buy the 25% he wanted...

 

http://money.cnn.com/2009/04/13/technology/gunther_electric.fortune/index.htm?postversion=2009041309

[mpauls]

The world is in desperate need of new super efficient battery technology.  Right now to power a light bulb we pay something like, 10 cents per kilowatt hour (kwh).  The cost per kwh to power a flashlight by the use of batteries, is something like $1000.  The feasibility of Electric cars is questionable, but there may be other developments that come as a consequence of such a products development.  I'd bet the money is in the battery, but who knows-we definitely don't know enough information.  Buffett has been very consistent in allocating Berkshire's capital, but there have been times when a particular action causes confusion.  This I suspect is one of those times. 

[mpauls]

Maybe I did't explain clearly.  The following is largely from Richard Muller.

 

  Here are a few costs of energy per kilowatt-hour from various sources:

 

Coal: 0.4¢ per kWh (coal costs $40 per ton)

Natural gas: 3.4¢ per kWh (gas costs $10 per million cubic feet)

Gasoline: 7.5¢ (at $2.50 per gallon; the price changes frequently)

Car battery: 21¢ per kWh (the cost is the $50 per battery to replace)

Computer battery: $4 per kWh (500 charges $100 per battery)

AAA battery: $1000 per kWh (cost is $1.50 per battery)

 

 

It's difficult to compare the costs of energy because different fuels and produce varying amounts of energy.  Below provides a cost comparison in terms of electricity.   

 

Fuel market cost cost per kWh (1000 Cal) cost if converted to electricity

coal

$40 per ton

0.4¢

1.2¢

natural gas

$10 per million cubic feet

3¢

9¢

gasoline

$3 per gallon

9¢

27¢

electricity

$0.10 per kWh

10¢

10¢

 

 

 

For a good discussion on Electric Cars see:

http://muller.lbl.gov/teaching/physics10/old%20physics%2010/physics%2010%20notes/Electric%20cars%20.html