Tokyo Electric is actually my biggest holding. As Peter Lynch says, distressed nukes make the best investments. As Graham and Dodd said, well capitalized utilities rarely go into bankruptcy. Buy when the dividends omitted, sell once it's reinstated.
Diversification is merely protection for ignorance. As Keynes said, "A small gamble in a large number of different companies where I have no information to reach a good judgment, as compared with a substantial stake in a company where one's information is adequate, strikes me as a travesty of investment policy."
Graham and Dodd were dealing with U.S. utility stocks not overseas utilities. Big difference when forced into quantifying political, legal, liquidity, repatriation, and currency risk. It's a different ballgame than Graham and Dodd's racket.
Japan has a 1961 liability law that limits liability of nuclear plant operators in cases of "grave natural disasters." If the strongest earthquake in the nations history, on top of a double tsunami (which had never been documented before Fukushima) don't qualify as "Grave natural disasters," then they need to rename it the Godzilla clause. They are protected from substantial losses, moreso than BP was with the oil spill.
Japanese utilities have regional monopolies due to the fact that Japan is completely lacking in natural resources. Without nuclear power, the country is now forced to import the majority of their fuel, which is why they've run a current account deficit for the past two quarters. The LDP, which just won the general election last month, campaigned on a platform of restarting the nuclear reactors, which TEPCO is expected to do within the next several months.
It's not a different ballgame if you understand the environment in which the firms operate. Japanese electric utilities are to Japan what the banking sector is to the U.S., and TEPCO is the U.S. equivalent of Goldman Sachs with their revolving door of directors and cabinet posts. Graham and Dodd are very much relevant; it's Japan not Bangladesh.