One of the many reasons why Buffet just put 1 billion into OIl stocks

By 2016 oil likely will be relatively dead worldwide because Solar will be more cost effective than oil in every single nation on earth because of falling prices on ever evolving solar cells.

So, Oil likely has only one big jump left in it price wise. So, the likely strategy would be to buy low and wait for it's last high sometime when Saudi Arabia is forced by necessity to raise oil prices and every oil driller and shale oil miner going out of business worldwide causes oil to spike up high. Then likely Buffet will sell some or all of his 1 billion in oil stocks and go somewhere else with his money.

The problem for most long term investors worldwide regarding oil will be dealing with capital gains taxes and how to handle that problem when they sell their oil stocks for the last time. (Unless they eventually reinvest after it drops to this level or lower once again.) and that time likely stays below 50 dollars a barrel for the rest of this century.

I'm guessing about the 50 Dollars a barrel as an average. However, you never know exactly when this last oil spike is going to happen. Also, what if Solar changes because of a small ice age in 2030 or 2040 or around there and brings another "Little Ice Age" like in the 1600s to early 1800s in Europe caused by the Maunder minimum like which also happened during the "Little Ice age" in Europe. However, the Maunder minimum didn't cause the "Little Ice age" it likely just extended it longer.

During a Maunder minimum there are almost no sunspots or solar storms at all and there are no northern Lights at all historically speaking.


However, some people are likely going to use Gasoline in every country on earth and the same with Diesel too. However, the general use of Gasoline and Diesel likely will reduce because of Advanced solar cells being more cost effective than Gasoline or Diesel will drive prices lower in general after likely the next large spike. However, this is just a best guess. However, Buffet likely believes this to the tune of 1 billion dollars.