Monthly Archives: August 2019

McLane Launches New Back Office Management Solution for Convenience Stores

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Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice supply chain solutions, announced the launch of a new back office management solution for convenience store retailers during the McLane National Trade Show (NTS).

The new solution is a one-stop-shop for retailers and all their technology needs. McLane has completed interfaces that communicate with three of the largest POS hardware providers in the industry, representing approximately 98% of the market (NCR RPOS, Gilbarco Passport and Verifone Ruby2).

McLane’s approach uses the industry-standard language called NAXML to share data with each POS hardware platform. This integration positions McLane to be a retailer’s complete back-of-house solution.

Benefits of the new back office solution include:

• Centralized price book management including perpetual inventory
• Ability to setup and manage distributors, stores, groups, retails and costs
• Fuel setup and management
• Item mix-match, combos, promotions, bundling and happy hour specials
• Age verification and category management
• Back office data can now be established with retailers directly from McLane — this data is often difficult to obtain from third party back-of-house companies
• Ability to reduce back office costs allowing more money to be spent elsewhere
• A monthly lease for this solution eliminates the need for costly software upgrades, thus freeing up capital to spend in other parts of the organization

Deon Johnson, VP of applications at McLane, unveiled the new back office management system at NTS, held at the Henry B. González Convention Center in San Antonio, TX during the Technology Conference.

“McLane leads the industry by providing unmatched customer technology offerings to c-stores,” said Johnson. “We can support retailers with end-to-end technology solutions with the new, integrated back-of-house solution.”

McLane is dedicated to providing its retailers with the latest in new technology to improve efficiency in all aspects of inventory control, ordering and item management. Rapid implementation and rollout mean that retailers can take advantage of cost-savings solutions now, not next year. The solutions are easy to use, and store employees are able to address informational needs without having to spend time on the phone seeking answers from others.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Brooks Running Teams with Locally for Same-Day Shoe Delivery to Runners

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Brooks Running Company and Locally will partner to launch Same-Day Delivery to runners in 10 markets across the United States on Aug. 22 to get performance running product onto feet and into hands fast. Brooks will be the first running brand to offer same-day delivery partnering with Locally and local running stores in this way. In addition to the 10 original Same-Day Delivery markets, Locally will begin offering the service in 25 additional U.S. cities.

“We know that for many runners, going for a run can depend on having the right gear on hand at any point in the day, which is why we’re thrilled to partner with Locally to offer Same-Day Delivery in cities throughout the U.S.,” said Brooks Running VP of U.S. Specialty Retail Accounts Rick Wilhelm. “In addition to delivering gear to runners within 24 hours, Same-Day Delivery will create new sales for our specialty running accounts by introducing new customers to their local stores.”

Runners will be able to shop on BrooksRunning.com and find available inventory at local specialty running stores using Locally software. The local store will fulfill the order and deliver it via one of Locally’s delivery partners, Deliv or Postmates.

The first 1,000 runners to place an order for Same-Day Delivery in the 10 launch cities will receive free delivery using a promo code that will be available via Brooks’ social and email channels. After that point and outside of those cities, runners will have the option to pay a delivery fee—which starts at $5 and depends on proximity to the store—to have their gear arrive within the day, often within hours.

Exact delivery times and cost will depend on the runner’s proximity to the store, store operating hours and the time of day the order is placed.

“We built Locally to help brands and retailers work together to delight shoppers,” said Locally President Mike Massey. “We’re so excited to work with Brooks to push the platform towards its ultimate goal: true on-demand shopping with nearby in-store pickup and Same-Day Delivery options.”

The launch cities include:

• Atlanta
• Baltimore
• Chicago
• Houston
• Minneapolis
• New York
• Philadelphia
• San Francisco
• Seattle
• Washington

As the Same-Day Delivery launch partner for Locally, Brooks will initially be the first running brand to offer its service to runners. Brooks and Locally will evaluate how to increase the number of cities they make the service available in.

In addition to offering the Same-Day Delivery service to runners, Brooks’ partnership with Locally allows runners to locate performance running gear at stores near their homes, driving sales for local retailers. Other Brooks investments to help bolster sell-through at retail include developing an award-winning customer service team, launching the Fast Track application which allows store associates to drop-ship Brooks product to runners and more.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

PacifiCorp Assumes Sole Ownership of Foote Creek I Wind Farm

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PacifiCorp, a subsidiary of Berkshire Hathaway Energy, has acquired sole ownership of the Foote Creek I wind facility, a 41.4 MW project in Carbon County, Wyoming.

PacifiCorp is now proceeding to repower the project with new turbine technology, increasing energy output by 60%.

The repowered facility will produce enough energy to meet the needs of 19,500 typical homes in PacifiCorp’s service territory. It is anticipated that the project will generate an additional $14 million in tax revenue for rural Wyoming communities over the next 30 years.

Foote Creek I was the company’s first wind facility and the first utility-scale wind project in Wyoming. The demonstration project was commissioned in 1999, with PacifiCorp and the Eugene Water & Electric Board as co-owners, and it was supported with a power purchase agreement with the Bonneville Power Administration.

“Twenty-one years ago, PacifiCorp and its partners’ development of Foote Creek I helped pave the way for utility-scale wind energy as an industry-defining demonstration project,” says Stefan Bird, president and CEO of Pacific Power, a division of PacifiCorp. “Today, this new investment in the project builds on our vision to even better harness wind energy and power the grid with increased efficiency, delivering even more low-cost renewable energy to our customers.”

PacifiCorp will remove the 68 existing 600 kW wind turbine generators originally installed between 1998 and 1999 and replace them with 13 modern turbines, supported by new foundations, energy collector circuits, switchgear and controls.

Notably, repowering in 2020 will requalify the facility for federal production tax credits, which will be passed on as savings to PacifiCorp customers. It will also reduce ongoing operating costs associated with the older turbine equipment.

The repowering is expected to extend the useful life of the facility by more than two decades, creating substantial ongoing benefits for customers. The wind turbines occupy about 1% of the land they are housed upon, thereby allowing the property to continue supporting traditional land uses, such as grazing livestock.

“Acquiring full ownership and repowering Foote Creek I provides a unique opportunity to upgrade the company’s oldest wind plant, located in one of the most favorable wind energy sites in Wyoming, applying the latest technology so that it can continue to serve our customers well into the future,” comments Gary Hoogeveen, president and CEO of Rocky Mountain Power, another division of PacifiCorp.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

BYD Delivers 100 E-Buses to Santiago, Chile

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Chinese battery and vehicle maker BYD has delivered 100 new BYD electric buses to the port of San Antonio.

Three Chilean Ministers (Transportation, Energy and Environment) welcomed the buses, together with representatives of BYD, Enel and Metbus.

The buses, BYD K9FE, were shipped from the port of Shanghai on July 1, and landed on Wednesday, beginning the overland journey from San Antonio to the Chilean capital Santiago, where they will be integrated into the fleet that operates on the Avenida Grecia, the only completely electrified bus line in all of the Americas, and one that benefits more than 660 thousand people weekly.

Following the arrival of this batch of electric buses, another 83 units will be added in mid-August. These 183 units of BYD pure electric buses will join the 100 electric buses that BYD and local partner Enel brought into Santiago last December, which gave BYD a dominant share of more than 60% in the capital’s promising electric bus market, and created the largest pure electric bus fleet in Latin America.

Minister Hutt pointed out that “the arrival of this new fleet of electric buses demonstrates once again that the qualitative leap in public transport will not change, as well as our commitment to continue raising the quality of people’s travel experience and, of course, their quality of life. It is a profound and radical transformation, which is embodied in the next tenders that we are promoting”.

With the arrival of the new electric buses, about 6% of the capital’s fleet is now electrified and emissions-free. These 12-meter vehicles, like those already operating in Santiago, have Wi-Fi, USB ports, universal accessibility for people with reduced mobility, cameras and a segregated cab for driver safety, as well as padded seats and low floors.

They will be integrated during the last quarter into the existing Metbus fleet to operate the lines 506, 507 and 510, along the popular Avenida Grecia route. Metbus is also the largest pure electric bus fleet operator in all of the Americas.

“The arrival of these 100 new electric buses sees Metbus set a benchmark for electromobility in Santiago’s public transport, which makes us very proud, because we were able to incorporate this new technology in the country”, said Juan Pinto, president of Metbus. “We also opened the doors of the market so that many other bus operators are excited to bring electric buses here and several bus factories want to open in Chile to compete with these new products”.

The 183 electric buses will be powered by Enel X, which will also provide the necessary charging infrastructure by building three new charging stations in Santiago. “This new milestone for electric public transportation is framed in the context of the energy transition that Enel is leading. Our actions seek to support Chile’s transition to an ever-cleaner energy system and contribute to solving challenges as important as reducing pollution in our cities”, said Paolo Pallotti, general manager of Enel Chile.

“With this new fleet we started a consolidation process in the market and we continue to lead electric vehicle sales in Chile. All this would not be possible without our client Metbus, and also with the support of Enel X we have made possible a completely innovative financing structure,” said Tamara Berríos, Country Manager of BYD Chile. “In 2019, Chile will have the first fully electric bus route on the continent, 100% non-polluting and noise-free. The government has set Chile as a role model for the entire region and we will continue to support these electromobility initiatives”.

At present, BYD pure electric buses are successfully servicing markets in many countries across Latin America, including Chile, Colombia, Argentina, Brazil, Ecuador, and Uruguay. Globally, BYD’s pure electric buses, taxi, and other vehicles have spread to over 300 cities, in more than 50 countries and regions.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value almost ten-fold, and is now worth roughly $1.96 billion.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.
© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Special Report: BNSF On Track For 2020 Test of Lithium-Ion Locomotive

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Wabtec and BNSF Railway Company are on track for a late-2020 test of a lithium-ion battery-powered locomotive paired with diesel locomotives in a “consist” (railroad jargon for a sequence of connected locomotives) to power a freight train along a stretch of rail in California’s Central Valley between Stockton and Barstow.

If successful, the fuel savings could have a big impact on BNSF and other railroads. And the environmental benefits could also help BNSF advance one of its major capacity-building projects.

BNSF has been developing the pilot program with help from Wabtec (formerly GE Transportation), which is developing the locomotive.

Currently, Wabtec builds new locomotives up to 5,400 horsepower. In addition to locomotives, Wabtec also produces freight cars, passenger transit vehicles and power generation equipment, for both original equipment and aftermarket applications.

For BNSF, the fuel saving could be huge, as adding even one battery-powered locomotive to the train could reduce the consist’s total fuel consumption by up to 15 percent.

BNSF previously looked at liquefied natural gas as a possible alternative to diesel fuel, but ended the project, and has since moved on to battery power.

The leap to battery power is not as big of one as it may at first seem. Diesel-electric locomotives like the machines Wabtec builds are already essentially power plants on wheels. They use a powerful diesel engine to generate the electricity that drives the electric motors that spin the wheels.

Wabtec believes that a battery-powered locomotive is the perfect complement to its diesel-electric brethren. The battery will hold 2,400 kilowatt-hours of energy, meaning it’s able to maintain full horsepower for roughly 30 minutes on a given charge. Then the operator can decide how to use that power.

For example, the operator could slash emissions from the diesel-powered locomotives by drawing heavily on the battery to start up the train. This would be especially desirable if the train were pulling out of a city rail yard, close to populated areas.

Using the battery power also cuts down on noise. The train operator may also choose to “graze” on battery power — or even recharge the battery — when the train is cruising through open landscape, saving hundreds of gallons of diesel.

Each battery locomotive also has a brain, in the form of an onboard supervisory control system. The rail operator can input data about the train’s journey into the system — such as how much weight it’s hauling, the types of locomotives in the consist, and its rout — to allow the computer to make decisions about the best way to use the battery before the train even pulls away.

Imagine a battery-enhanced train making a 500-mile trip across sparsely populated terrain — meaning fuel economy is the name of the game. Software will calculate the optimum ratio of battery power to diesel usage for such a journey and decide on the most favorable balance for the hybrid locomotive consist. The software can then pinpoint the exact moments to draw on the battery, thus sparing diesel.

The new locomotive will use a battery cell similar to what you might find under the hood of an electric car. It is a lithium-ion energy storage unit with cells that contain a combination of nickel, manganese and cobalt only far larger.

A standard electric-car battery usually holds a few hundred storage cells — each around the size of a mini tablet computer. But the prototype of the new locomotive will have a battery with approximately 20,000 cells, and future versions may have as many as 50,000 cells. The cells also must be able to weather the heavy-going environment of a locomotive, with all its jolts and shocks.

To build the demonstration model, workers will strip out the engine and cooling systems from a diesel locomotive to make way for the battery under the hood. But from the outside, the battery-powered locomotive won’t look much different from its diesel counterparts.

The impact on BNSF could be huge, not only in fuel cost-savings, but if it could use battery-powered locomotives in urban areas, such as the Port of Long Beach, it might be able to overcome the opposition to its long-stalled Southern California International Gateway plan, which has been held up due to environmental concerns tied to diesel emissions.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance

Berkshire Hathaway Specialty Insurance Enhances D&O Liability Insurance in Asia

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Berkshire Hathaway Specialty Insurance (BHSI) has enhanced its Asia Executive First Directors & Officers (D&O) Liability Insurance to include a market-leading provision that reinstates policy limits exhausted by the entity or by individual insureds.

“Corporate regulatory investigations have become more targeted and aggressive. As enforcement agencies sharpen their focus, we can expect to continue to see deeper and more costly investigations, often involving multiple individuals,” said Patrick Ko, Head of Executive & Professional Lies, BHSI, Hong Kong. “Our automatic reinstatement of limits provision gives insureds confidence that coverage will be there when they need it.”

BHSI’s Asia Executive First D&O Liability policy, which provides clear, simply worded coverage for large commercial organizations and their directors and officers, now includes an automatic reinstatement provision that applies across the board to all of the policy’s insuring clauses, replenishing limits which have been exhausted by the payment of Side A (D&O indemnification), Side B (company reimbursement) or Side C (entity securities claims) losses for future claims.

“In Asia, there is a heightened focus on ensuring that directors and officers are held personally accountable for their actions. This is prompting companies and board members to examine their D&O coverage and carriers more closely,” said Emily Poh, Head of Executive & Professional Lines, BHSI, Singapore. “Our insureds can be confident that, along with expansive coverage, they have a D&O insurer that has the long term commitment and unmatched financial strength to protect not just the corporation, but their personal assets as well.”

BHSI has also added numerous other enhancements to the policy, including coverage for expenses to protect the insured’s reputation and for travel and accommodations required to comply with investigations.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Intero Launches Intero Capital Markets

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Intero, a Berkshire Hathaway affiliate and wholly owned subsidiary of HomeServices of America, Inc., is proud to announce that top Intero agent, Efi Luzon, will launch and manage a new division for the company called Intero Capital Markets.

Luzon brings more than 30 years of real estate experience to this new division, which is slated to invest more than $1 Billion in various Bay Area commercial opportunities over the remainder of 2019.

In addition to the investments, there will be a viable referral channel for agents that leverage their network to bring sellers with large commercial opportunities. Commercial projects that are up for consideration include large commercial holdings such as office buildings, shopping malls, apartment complexes, hotels, ground leases, mobile home parks and mixed-use parcels.

Running Intero Capital Markets is a natural progression for Luzon, who has experienced the highest level of success within the commercial real estate world. He has participated in some of the most prolific commercial transactions, not only in the Bay Area, but in the country. He has the top-three transactions, based on sales price, in the history of Intero and has more than $6 billion in sales volume over his prestigious career.

“I am very excited to get Intero Capital Markets up and running,” said Efi Luzon, Senior Vice President and General Manager of Intero Capital Markets. “We are going to experience a level of success unprecedented in the commercial real estate space and I’m proud to be driving this incredible division.”

Luzon started with Intero in 2004 and has had a stellar career with the firm. In that 15-year timeframe, Luzon has had several billion dollars in real estate sales and in 2017, he was recognized by RealTrends and The Wall Street Journal as the number one agent in California and number two agent nationally, with more than $800 million in sales. In 2015, Luzon earned the most coveted award from Intero with his induction into the Hall of Fame.

“All of us at Intero are tremendously proud and excited by what Efi is building,” said Brian Crane, Co-Founder and Chief Executive Officer of Intero – A Berkshire Hathaway Affiliate. “We know this will be an extremely successful venture for both Efi and Intero.”

“Having worked with Efi for a while now, I know his skill and determination will be a powerful combination for this new division,” said Scott Chase, Vice President and Managing Officer of Intero Los Altos. “We are not only excited for Efi, but we are excited what this new division will provide for Intero and our agents.”

© 2019 David Mazor


isclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Mouser Electronics Announces 2019 Best-in-Class Award Winners

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Berkshire Hathaway’s Mouser Electronics, Inc. has named the winners of its annual Mouser Best-in-Class Awards.

The authorized global distributor announced the honorees at an awards ceremony on August 5, recognizing the outstanding individuals from its manufacturer partners who best supported Mouser’s marketing programs and new product introduction (NPI) launches by demonstrating exemplary teamwork and top performance.

“Each year, we select our Best-in-Class Award winners from hundreds of business professionals,” said Glenn Smith, Mouser Electronics’ President and CEO. “We greatly appreciate the dedicated individuals who won these awards. Each has played an essential role in helping us introduce and promote their companies’ products to our customers, and we gladly honor them today.”

Winners of the Mouser Best-in-Class Award are selected using five key criteria: Strategically partnering with the Mouser team, promoting product lines and working together on new product launches, finding creative solutions to grow market share mutually for both companies, and maximizing Mouser’s unique value proposition within their own businesses.

2019 Mouser Best-in-Class Award Winners:

Lora McIlheran, 3M
Sumit Awasthi, Analog Devices
Kelley Nall, Amphenol
Matthew Salmanpour, Cypress Semiconductor
Diane Laegeler, Digi International
Matthew Baker, HARTING
Renée Dill, Molex
Bob Johnson, NXP Semiconductors
Jay Pauer, OSRAM Opto Semiconductors
Tammy Stine, TE Connectivity

At this year’s ceremony, Mouser also recognized the four individuals who have achieved the President’s Award honors. The President’s Award recognizes the extraordinary individuals from Mouser’s supplier partners who have won the Best-in-Class Award five or more times, demonstrating consistent exemplary performance.

President’s Award Winners:

Dee Fuller, Amphenol
Cheryl Swaim, KEMET
Doug Lippincott, Panasonic
Steve Nye, Vishay Intertechnology

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

GEICO’s Rynthia Rost Receives Prestigious Urban League Award

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GEICO’s vice president of public affairs, Rynthia Rost, received the Charles B. Collins Distinguished Trustee Award at the recent 2019 National Urban League Conference in Indianapolis.

The annual honor goes to a notable Urban League advocate who embodies the ideals of the organization and the esteemed Charles B. Collins – who helped to usher-in great growth and improvements during his long affiliation with the National Urban League.

Rost’s commitment to community service and mentorship is longstanding and well-known. She began her career as a pro bono attorney and continues to dedicate her life and work to uplifting communities.

“Rynthia Rost embodies the Urban League’s mission of empowerment and service,” said Marc H. Morial, president and CEO of the National Urban League. “Her work on financial literacy programs, in particular, has made an enormous difference in the lives of underserved people. As a member of the Audit Committee of the National Urban League Board of Trustees, she serves a vital function in overseeing the fiscal soundness of our movement. She is a role model and mentor not only within the Urban League but in the community at large. We are proud to honor her with the Charles B. Collins Distinguished Trustee Award.”

Rost also serves on the boards of Urban League affiliates in Washington, D.C., and Essex County, New Jersey. In addition, she is vice-president and an executive board member of the Boys and Girls Clubs of America and chair of the Children’s National Hospital Corporate Advisory Board. Rost has earned many other accolades for her work, including the Community Partner Award from Mentor’s Inc. and the Service to Youth Award from the National Boys and Girls Clubs of America.

Rost has led GEICO’s public affairs efforts since 1994. She directs community affairs and GEICO Cares, the company’s country-wide associate community service and volunteer program.

“I am grateful to the National Urban League for this tremendous honor and for allowing me to be part of your efforts to empower local communities,” Rost said. “I also want to thank GEICO for the privilege of working with our 40,000 associates across the country on exciting community service projects that are positively impacting so many people.”

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Value Investing: Risk Is Not Your Path to Reward

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The first in an occasional series on Value Investing

How often have you heard that if you want greater returns you have to take more risk?

It’s one of those stock market investing truisms that not only gets repeated ad nauseam, but most anyone that has ever met with a financial advisor, or opened an online mutual fund or brokerage account, has probably been asked to declare their risk tolerance, as if the more risk you take the more reward you can hope to achieve.

The implication is that risk is tied to reward and you must be willing to take more risk if you want more reward.

However, nothing could be further from the truth.

This is not to say that there aren’t some investments that are safer than others. A Treasury bill is certainly far safer than a corporate bond, for example. However, there’s not a direct correlation between riskiness and return.

The very fact that there is risk means by definition that you have a greater chance of losing money the riskier an investment gets.

The father of Value Investing, Benjamin Graham, summed this seemingly pervasive but erroneous view when he wrote “there has developed the general notion that the rate of return which the investor should aim for is more or less proportionate to the degree of risk he is ready to run.”*

The goal of investing is making money, and it is not just taking greater risk that gets an investor closer to that result.

So, what gets an investor more return if it is not taking more risk?

It is doing the painstaking work that leads to recognizing value.

According to Graham, return is not related to the risk you take, but the preparation you have done (or lack of it) in selecting your investment before you invest.

For the Value Investor, the research you do and your adherence to Value Investing principles is what determines your rate of return.

First among those principles is that price is at the heart of any investment decision, because even a good business or piece of a business can bring a poor return if bought at too high a price.

Graham notes that it’s not the risk you take, but rather “The rate of return sought should be dependent, rather, on the amount of intelligent effort the investor is willing and able to bring to his task.”*

Value Investing lays out the fundamentals that followers of this school of investing are looking for. Those fundamentals lead the investor to the price worth paying for an investment, whether it’s a share of stock or the purchase of an entire business.

Warren Buffett went so far as to state that “The greater for potential for reward in the value portfolio, the less risk there is.”**

So, the next time you are making an investment, don’t let risk be an indicator of reward, it will only lead you astray.

*Graham, Benjamin, et al. The Intelligent Investor: a Book of Practical Counsel. Harper Collins, 2013.

**Buffett, W. (1984). The Superinvestors of Graham-and-Doddsville. Hermes, (Fall)

© 2019 David Mazor


Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.