GoKawiilBerkshire Hathaway's old energy bets turn into unplanned AI infrastructure windfall
Warren Buffett, who stepped down as Berkshire Hathaway's chairman last week, built his fortune avoiding flashy AI stocks in favor of utilities and industrial firms. Two of those older deals — the 2000 purchase of MidAmerican Energy and the 2016 acquisition of Precision Castparts — are now benefiting from AI's surging demand for electricity and turbines, according to analysts cited by CNN.
GoKawiil's interpretation of the reporting above, not reported fact.
Analysts including Cathy Seifert of CFRA Research say the payoff was unintentional, arising from AI's unexpected strain on power grids and equipment supply chains rather than any strategic bet on the technology. This suggests that companies with exposure to energy infrastructure, even without AI branding, could see indirect gains as data center buildout accelerates.
- Berkshire's MidAmerican Energy, bought in 2000, now serves Iowa's booming data center industry.
- Precision Castparts, once seen as an $11 billion overpay, benefits from turbine shortages tied to AI power demand.
- Analysts say the gains were unplanned, driven by AI's electricity needs rather than deliberate strategy.
Source: entrepreneur.com — Jon Small, 2026-09-22
Published there as: “Warren Buffett Never Chased Flashy AI Stocks. Here’s How He’s Making a Killing on the Boom Anyway.”
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