The Most Successful Investor of the 20th Century Is Still Betting on Fossil Fuels

In what bids an ill omen for the future stability of the global climate, Warren Buffett has just aquired a $3.7 billion share in ExxonMobil. The fact that the Oracle of Omaha—a man routinely touted as "the most successful investor of the 20th century"—has bet such a massive sum on an oil giant's continued success is a little unsettling.

Sure, Exxon's one of the most profitable companies in the history of capitalism—it is currently vying with Apple for the biggest company in the nation—but we're reaching zero-sum game territory with fossil fuel corporations and climatic stability. If they win, humanity loses.

Scientists say that the atmosphere can only absorb 565 more gigatons of carbon without leading to warming more than 2˚C, the number climatologists finger as a potentially apocalyptic tipping point. The problem is, there's more than five times that amount left in the dirt—if we tear through all the oil, coal, and natural gas in the ground, Earth will look more like Venus by the time we're done.

Which is why this news is so disappointing. Bloomberg reports on the deal: "Buffett has tracked Exxon and bought its stock in the past, holding a stake in the Irving, Texas-based energy producer as recently as 2011 … Exxon Mobil “is undervalued, in his opinion, and pretty much being ignored by the market,” said David Kass, a professor at the University of Maryland’s Robert H. Smith School of Business."

So business logic dictates that one of the biggest polluters in history is "undervalued" at a time when that pollution is about to give rise to an unprecedented climate crisis. That's what's so disconcerting—that markets, and savvy investors like Buffett haven't absorbed the reality of the situation.

It's not Buffet's only major bet on fossil fuels, either. He recently invested billions in BNSF, a railway system that runs coal trains. At the time of the investment, it prompted The Washington Post's Brad Plumer to write that "Buffett's essentially betting that coal's going to remain a major part of the US energy mix for quite some time, even as the country moves to cut carbon emissions."

Furthermore, his MidAmerican Energy Holdings operates nearly 10,000 MW of coal power. Buffett is often heralded as a progressive investor and philanthropist—his intention of giving away nearly all of his fortune to charity is noble enough, as are his calls to raise taxes on major earners like himself. It appears that he spends a good deal of time making considerations beyond the bottom line—so it's even more depressing to consider that the man thinks the future is planet-strangling oil and coal.