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Solar companies are clearly different from what Mr. Buffett likes to buy. Solar companies are highly volatile growth stocks that do not have predictable cash flows. They do, however, have long-term trends going for them, and the Chinese sector leaders, JinkoSolar, Trina Solar, and Canadian Solar all have great promise.
With the Chinese government behind them, they will not go out of business. As solar costs come down, they will see increasing demand and healthier margins. As solar companies move more into providing distributed power solutions, the solar companies of the future are likely to be similar to the utility companies of today, both with sustainable cash flows that Mr. Buffett looks for.
Despite the recent bearish conditions, I think the long-term thesis for the leading Chinese solar companies is still on track.
www.fool.com/investing/general/2013/12/12/...-or-reversal.aspx