Bloomberg - Who Owns The Sun? 5-15min

Warren Buffett controls Nevada’s legacy utility. Elon Musk is behind the solar company that’s upending the market. Let the fun begin. ... SolarCity’s success is partly because the government provides subsidies and enables an arrangement called net metering, which allows homeowners with panels to sell back to the grid any solar energy they don’t use. This helps offset their cost of power when the sun’s not shining. Like more than 40 other U.S. states, Nevada forces utilities to buy the excess energy at rates set by regulators—usually the same rate utilities charge (hence, the net in net metering). In Nevada, it’s worked well. So well, in fact, that NV Energy, the state’s largest utility, is fighting it with everything it’s got. ... In just a decade, solar has gone from an enviro’s dream to a serious lobby that will be fighting these kinds of battles nationwide for years. ... Power companies may not be winning any popularity contests, but they’re developing their own renewable energy to keep up with changing attitudes and to meet state mandates.

Fortune - Buy. Squeeze. Repeat. 10min

The 3G management model that Buffett so admires is worth a close look because it’s on track to eat the food industry. At its heart is meritocracy, broadly defined. Every employee must justify his existence every day. That’s great news for the very best performers; they are promoted with speed that’s unheard-of in lumbering old food companies. ... Underperformers get fired with the same alacrity. Budgeted costs also are evaluated unsparingly every year, or more often, and are eliminated if they’re no longer judged worth incurring. ... More important than the actual savings is the message. “We think and act like owners of our business, treating every dollar as if it were our own,” the company tells prospective employees. ... A central feature of this model is that it can’t work forever. It builds value only by buying more companies. ... So what’s next? Anyone who might know is not saying. Speculation in the industry is that since AB InBev can expand only outside its industry ... Another, larger factor could frustrate Kraft Heinz’s search for a much-needed takeover target: The entire food industry is “3G-ing” itself before Kraft Heinz can do it to the companies. Ever since 3G bought Heinz, every major U.S. foodmaker has announced an initiative to reduce its overhead significantly. 3G embraces a demanding discipline called zero-based budgeting, in which every unit’s budget is assumed to be zero at the beginning of each year, and every proposed expense must be justified anew.