Warren Buffett Owns the Largest Natural Gas Pipeline System in the U.S. Want to Invest Like Him? Buy This High-Yield Pipeline Stock.
Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is a conglomerate that directly owns a large number of companies. One, Northern Natural, is a midstream giant with a particular focus on natural gas. If you want to invest like Buffett, you can own a midstream giant focused on natural gas, too, by buying high-yielding Enterprise Products Partners (NYSE: EPD). Here's what you need to know.
The midstream business is very boring, but that's probably what makes it so attractive to Buffett. Northern Natural owns vital infrastructure assets and charges customers tolls for using them. That creates a reliable stream of cash flows that Berkshire Hathaway can use however it likes. Right now, that likely means building up the company's $33.7 billion cash hoard and $130 billion in short-term investments as it searches for new acquisition candidates.
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Source Fool.com