NV Energy, Inc. (NVE), Ameren Corp (AEE): 3 Lessons From Buffett’s Newest Buy

Nevada was one of the hardest-hit states from the financial crisis, and as recently as March 2012, its unemployment rate hovered 3.4 percentage points above the national average at 11.6%. But in the past year, unemployment has dropped to 9.7%, home prices are up around 25%, and new-home sales have skyrocketed 65%.

Source: NV Energy.

If there’s one area where the housing bubble burst bigger than Nevada, it’s Phoenix, Ariz. Pinnacle West Capital Corporation (NYSE:PNW) is the proud owner of Arizona Public Service, the state’s largest and longest-serving electric company. The company currently has 1.1 million customers on its books, and expects to add an additional 750,000 by 2030. This past quarter, Pinnacle West Capital Corporation (NYSE:PNW) West experienced seasonally adjusted 1.4% customer growth. In the past three years, excess Phoenix housing has fallen 50%, and industrial building vacancies are down to 10% from a recession-high of 15%. The Arizona recovery is understandably tentative, but things seem to be looking up for both Phoenix and Pinnacle West.

Buy like Buffett?
Copycat investing is no ticket to success, but Warren Buffett’s recent purchase puts things in perspective for smart investors. Look for these three qualities in your own investments, and you’ll be well on your way to pulling profits for your portfolio.

The article 3 Lessons From Buffet’s Newest Buy originally appeared on Fool.com.

Fool contributor Justin Loiseau owns shares of Berkshire Hathaway and Tesla Motors . You can follow him on Twitter @TMFJLo and on Motley Fool CAPS @TMFJLo. The Motley Fool recommends and owns shares of Berkshire Hathaway, Facebook, and Tesla Motors.

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