Summary:

Did the Warren Buffett investment machine see some seriously undervalued assets in solar, even as most investors have recently viewed the solar industry as a train wreck?

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The premise of value investing is to buy securities whose shares appear underpriced by some form of analysis. Warren Buffett is the strategy’s greatest adherent and also its greatest success story.

In the past six weeks, Buffett’s MidAmerican Energy Holdings Company has been on a renewable-energy investment spree, buying up the $2 billion Topaz Solar Farm, in Southern California; a 49 percent interest in the $1.8 billion Agua Caliente solar project, in Arizona; and, last week, another wind project acquisition in Illinois, which brings the company’s wind power portfolio to $6 billion.

The solar acquisitions, in particular, are new, and they make you wonder: Did the Buffett investment machine see some seriously undervalued assets, even as most investors viewed solar as a train wreck?

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