ThePanelist.com - Berkshire Hathaway Charlie Munger on Ethanol

Berkshire Hathaway Charlie Munger on Ethanol

Written by David Neubert

Saturday, 05 May 2007

When asked by a shareholder about ethanol, Charlie Munger made the following statement: Wheat and Corn Fields

"Running cars on corn is about the stupidest thing I ever heard of. Our government is under tremendous political pressure [to keep pushing and supporting corn ethanol] even though it makes no sense." He goes on to state an unpopular view in Nebraska, "More energy is used producing ethanol than it creates and that's without considering the damage to the topsoil producing fuel when we could be producing food." Munger further states that it's silly to drive up the price of food in order to provide an uneconomic fuel, as well as a dumb government policy.

I have to say that it takes some guts to be against anything that drives up the price of corn. Brave Mr. Munger, very brave.

Mr. Buffett said, "Well Charlie, we'll be sneaking you out of Omaha tonight."

Tags

See All Tags

Agricultural Commodities

Alternative Energy

BRK.A

Ethanol-Biofuels

Government

Comments (3)

Subscribe to this comment's feed

...
written by David Neubert , May 09, 2007

There's even a petition now to stop Congress from even more biofuel subsidies. http://action.foe.org/dia/orga..._KEY=11249

...
written by James , October 01, 2007

Well, who cares what Munger said. I think it's more important that Buffet didn't echo his statements. Anyways, in 10 years, we'll see if he was wrong or right. Actually, we'll see right around 2012.

...
written by Greg Borke , March 12, 2008

The skeptics said it would never fly, well it fly`s!!
Folks wake up and smell the E85!
American renewable fuel (not) foreign oil.
Get the facts straight and invest.

Write comment