SunPower Corporation (NASDAQ:SPWR), Sunedison Inc (NYSE:SUNE), and First Solar, Inc. (NASDAQ:FSLR) have a bright future and Warren Buffet sees right through it. On Fox Business, Tom Werner, CEO of SunPower shed light on the scope of the industry and explained why it is such an attractive investment for Buffet and other investors in the energy sector.
“Solar works. It is economic, more importantly, its bankable, so the cost of capital has come down dramatically, which is virtuous up cycle because the cost of solar goes down and because people want it. So, it plays exactly and is contrarian currently. Now you saw the trend over the last couple of years, it’s not contrarian, but it is contrarian to the current trend, that is exactly what he [Warren Buffet] does […],” explained Werner.
While SunPower Corporation (NASDAQ:SPWR), Sunedison Inc (NYSE:SUNE), and First Solar, Inc. (NASDAQ:FSLR) are currently showing a down trend in terms of stock prices, mainly because of the declining oil prices, this does not mean that the future of energy does not belong to them. The stock prices are still up when seen from a long term lens of 2 years or more. This presents an interesting opportunity for investors to enter the market.
Warren Buffet shares the same view, as the Fox Business reporter revealed that the Oracle of Omaha has invested nearly $16.9 billion in renewable energy and 36% of this investment is in solar energy. Although Buffet’s big bet is on SunPower Corporation (NASDAQ:SPWR) due to the technological and innovation edge that the company has over its rivals including, Sunedison Inc (NYSE:SUNE) and First Solar, Inc. (NASDAQ:FSLR), but that edge might be slowly fading away. The competitors have started to introduce products that have an efficiency very close to SunPower Corporation (NASDAQ:SPWR).
However, this doesn’t mean that the innovation will stop here. As Werner pointed out in his interview, there is still a huge potential for both growth and innovation in the industry.
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