Subject: Re: Berkshire's stock price
This is from John Mauldins weekly letter. Those of us who are long brk, hope he and Buffett are very right. '' The Future of Energy

Long-time readers will know that I am bullish on energy (oil and gas in particular), precisely because the ESG movement, including numerous governments, is limiting both the amount of money and places that can be drilled for oil and gas. Economics 101 says that if you reduce a supply of something that has an increasing demand the price is going to rise. Felix Zulauf and others at my conference were talking about $120-$150 oil next year. In a normal world, that shouldn't happen, yet it is. I am taking advantage by becoming a partner in an oil operating program'a rather large change for me, as I had to close my broker-dealer firm in order to do so.

As you have seen above, my risk tolerance is likely higher than most. Even for those who share my views on energy, a less risky path is probably more appropriate for most people. You can invest in high-quality, dividend-paying energy stocks and focused ETFs. Rising oil prices, if I am right, should benefit those investments.

For those with true risk capital, I would invite you to see what we are doing at King Operating. We are physically drilling for oil and gas in older, underdeveloped fields planning to improve their value. Typically, the older fields were all vertical wells, but you can improve the value of that old field by using modern technology and doing horizontal drilling and fracking. It is similar to buying an older apartment complex in a great neighborhood, upgrading and renovating it, raising rents and then selling it to someone who wants to be in the apartment management business.

Our goal is to increase the proven and probable reserves in these older fields using modern technology, demonstrating the potential for the field. Let's say there are 100 potential wells in a field, we might drill 5‒10, creating proven and probable reserves and taking some of the risk of drilling in older fields. Larger companies are quite willing to pay for that reduced risk plus proven reserves and that is what their shareholders want. (Oil and gas is a risky business and past performance is not indicative of future results.) It's more complex than that, but that is the essence.

I am putting the finishing touches on the first sections of what is a series I now call 'The Future of Energy,' in addition to several other papers I have done and one where I explain why I am working with King Operating.

Starting next week, I will be doing 1‒2 webinars a week that you can join and plans are being made to visit multiple cities over the next few months where you and I can sit down and talk energy (and some macro of course!).

You owe it to yourself to understand the changes that are coming to the energy sector and to explore how you can benefit from them. In this and other papers my complete intention is to give you a fuller understanding of the multiple ways that you can invest in the oil and gas industry, and why I have chosen this particular approach.''