The big flaw in Warren Buffett's view of climate change

In an annual shareholder letter to be discussed next month, the "Sage of Omaha" claims that climate change poses no risks to insurers - but the claim flies in the face of growing scientific evidence

Each year, investors eagerly await Warren Buffett's annual letter to Berkshire Hathaway's shareholders. And well they might: under his leadership, Berkshire's compounded annual growth rate from 1965 to 2015 was 20.8%, far better than the 9.7% achieved by the S&P 500.

But this year, the storied "Sage of Omaha" expanded his focus to encompass larger issues. In his shareholder letter, he tackled the controversial subject of climate change, suggesting that, while it threatens the planet, it might also provide some business opportunities for Berkshire Hathaway.