Warren Buffett recently bought NRG energy. If you look at financials (stock price,valuation,debt).They look awfull.
Just five years ago, NRG emerged from bankruptcy.NRG is in capital-intensive business that often requires hundreds of billions dollars.

I'm pretty sure W.B bought it because he thinks it is a bargain.

So, what is he up to ?

NRG is a wholesale power-generation company that operates a portfolio of power plants totaling nearly 24,000 megawatts of generation in five countries.

The idea here is quite simple he thinks energy prices will go much higher.Recently he talked about it on CNBC as well.If you compare price of oil with price of gold you find out that they correlate.What does it mean?

It means that Warren Buffett, T.Boone Pickens and Eric Sprott are in the same boat betting on higher energy prices.
I wouldn't bet against them.


I think it will be interesting to compare W.B. pick with ETF especially NLR.