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Forest River

Peter J. Liegl, Founder of Berkshire’s Forest River, Inc., Has Passed Away

(BRK.A), (BRK.B)

Peter J. Liegl, the founder of Berkshire Hathaway’s Forest River, Inc., has passed away. Liegl was a driving force behind the transformation of the RV industry and one of Indiana’s most respected citizens and philanthropists. He is best known for founding Forest River in 1996 and for selling the company to Warren Buffett’s Berkshire Hathaway in 2005, but his legacy in the RV world began long before that.

Liegl’s journey to success began from modest beginnings. After holding various sales and management positions in the RV industry, he co-founded Cobra Industries, a company that went public but saw him ousted. Undeterred, Liegl built his first RV by hand in a barn and sold it outside a Louisville lamp post, marking the beginning of “Where the forest meets the river.” This drive to succeed led him to establish Forest River in Elkhart, Indiana, with a vision to meet a wide range of consumer needs.

Under his leadership, Forest River grew into North America’s largest manufacturer of recreational vehicles, cargo trailers, pontoon boats, and commercial vehicles, including buses and trucks. Headquartered in Elkhart, Indiana, the company employs over 14,000 people across more than 100 facilities.

His management philosophy emphasized empowering employees and always prioritizing the consumer’s needs. As Liegl once said, “We don’t take ourselves too seriously, but we’re very serious about what we do.”

Despite planning a succession for the company, Liegl remained hands-on in the business well into 2024, leading innovation and growth at Forest River.

A proud Elkhart native, Liegl’s philanthropic efforts supported education, healthcare, conservation, and local communities.

© 2024 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 a 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.

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Lubrizol

Lubrizol and Polyhose Partner to Build State-Of-The-Art Medical Manufacturing Facility

(BRK.A), (BRK.B)

Lubrizol, a Berkshire Hathaway company and global leader in specialty chemicals, has signed a Memorandum of Understanding (MoU) with Polyhose, a global leader in fluid conveyance systems, to bolster innovation in India’s medical sector. The agreement was formalized in the presence of Tamil Nadu Industries Minister Dr. T.R.B. Rajaa and Industries Secretary V. Arun Roy.

The partnership aims to establish a state-of-the-art medical manufacturing facility in Tamil Nadu, increasing Lubrizol’s local medical tubing production by five times. This expansion will cater to domestic and international markets, producing high-quality tubing for critical neurovascular and cardiovascular applications such as balloon and minimally invasive catheters.

“This collaboration introduces precision manufacturing to India, opening new opportunities to serve critical care markets locally and globally,” said Bhavana Bindra, Lubrizol’s Managing Director for India, the Middle East, and Africa. The facility will use Lubrizol’s advanced thermoplastic polyurethane (TPU), known for its biocompatibility and high performance, and comply with ISO 13485 standards.

Lubrizol President and CEO Rebecca Liebert emphasized the company’s commitment to India’s growth, noting the country’s strategic role in its global operations. “This investment strengthens our local-for-local and local-for-global approach, ensuring access to world-class medical solutions,” she said.

The collaboration with Polyhose builds on a seven-year partnership and leverages Tamil Nadu’s industrial growth. Shabbir Y J, Managing Director of Polyhose, highlighted the state’s conducive environment for innovation and expansion.

The project is part of Lubrizol’s broader $350 million investment in India, which includes a Global Capability Center in Pune and major facilities in Gujarat and Aurangabad. Groundbreaking for the Tamil Nadu site is planned for 2025, with operations commencing in 2026.

© 2024 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.

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Lessons From Warren Buffett

Lessons From Warren Buffett: Buffett’s Journey from Failure to Legendary Investor

Warren Buffett, the legendary investor, wasn’t always the success story we know today. Many assume his investing prowess came naturally, but in reality, his early attempts were far from fruitful.

At the 2002 Berkshire Hathaway Annual Meeting, Buffett reflected on his early struggles. “From eleven to nineteen, I read every book on investing—Garfield Drew, Edwards and Magee, Gerald M. Loeb—and I didn’t do well at all,” he said. “I had no real investment philosophy and tried many things without making money.”

Everything changed in 1949 when Buffett read The Intelligent Investor by Benjamin Graham while studying at the University of Nebraska. “It changed my whole view of investing,” Buffett noted. “It taught me to think about a stock as part of a business, which now seems obvious, but it was my Rosetta Stone.”

This shift in perspective laid the foundation for Buffett’s later success, proving that even the most legendary figures in finance have their learning curves.

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2024 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.

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Benjamin Moore

Benjamin Moore Partners with Roadie to Offer Same-Day Paint Delivery

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In response to rising demand for quick delivery, Berkshire Hathaway’s Benjamin Moore, a leading paint and coatings company, has partnered with Roadie to provide same-day delivery, ensuring projects aren’t delayed. This collaboration helps independent retailers and painting contractors offer superior service, benefiting customers with faster access to high-quality paints and coatings.

The move has proven advantageous. According to Roadie, companies offering same-day delivery have seen boosts in customer satisfaction (80%), sales (70%), and retention rates (66%). Since Benjamin Moore’s partnership with Roadie began in 2020, they’ve expanded delivery services to a wider network of retailers, helping them meet increased consumer demand.

Many retailers using the Roadie network have enhanced customer satisfaction by delivering paint products within a 20-mile radius in as little as three hours. “Getting a project done on time is critical, whether you’re a professional or a parent preparing a nursery,” said Roadie CEO Marc Gorlin. “Our partnership helps Benjamin Moore reach customers where they are, delivering color to their door one gallon at a time.”

Roadie’s extensive network of over 200,000 drivers reaches 97% of U.S. households, making same-day delivery accessible and convenient. This partnership model exemplifies how brands can help independent retailers meet consumer expectations for speed and service, ultimately driving loyalty and preference in a competitive market.

© 2024 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 a 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.

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Berkshire Hathaway Specialty Insurance

Berkshire Hathaway Expands Italian Team with New Heads of Claims and Cyber

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Berkshire Hathaway Specialty Insurance (BHSI) has expanded its leadership team in Italy with two key appointments. Vincenza “Cinzia” Viele has been named Head of Claims, while Alessandro Majerna will serve as Head of Professional Indemnity (PI) and Cyber for Executive & Professional Lines. Both will be based in Milan.

Country Manager Leonardo Castrichino expressed enthusiasm for the additions, highlighting BHSI’s commitment to providing top-tier claims service. “With our ‘CLAIMS IS OUR PRODUCT’ philosophy, it is particularly exciting that Vincenza is joining our leadership team to oversee delivery of our all-important product, exceptional claims service,” he stated.

Marco Vantellino, Head of Executive & Professional Lines for BHSI in Italy, shared his confidence in Majerna’s expertise in PI and cyber. “Alessandro brings outstanding experience and a passion for his work that will serve our business, our customers, and our brokers well in Italy and beyond,” he said.

Cinzia joins BHSI with over 24 years of experience in claims management, overseeing complex property and casualty cases for large corporate and multinational clients. Alessandro brings more than 15 years of expertise in professional indemnity and cyber insurance, making him well-suited to help BHSI grow in this sector.

© 2024 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 a 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.

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Lessons From Warren Buffett

Lessons From Warren Buffett: Why Buffett Rejects Beta as a Measure of Risk

Warren Buffett challenges the conventional view of a stock’s beta as a measure of risk. Beta, which measures a stock’s volatility, is often used by investors to assess risk, with the belief that high beta stocks carry more potential for both gain and loss. However, Buffett disagrees with this approach.

At the 1994 Berkshire Hathaway Annual Meeting, he explained that volatility is not an accurate indicator of risk. He pointed out that financial markets have adopted beta as a popular measure of risk, but for him, it’s irrelevant.

“It became very fashionable in the academic world, and then that spilled over into the financial markets, to define risk in terms of volatility, of which beta became a measure, but that is no measure of risk to us,” Buffett said at the 1994 Berkshire Hathaway Annual Meeting. “Interesting thing is that using conventional measures of risk, something whose return varies from year to year between plus-20 percent and plus-80 percent is riskier, as defined, than something whose return is 5 percent a year every year. We just think the financial world has gone haywire in terms of measures of risk.”

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2024 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.

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CORT

Berkshire’s CORT Tenting Solutions Unveils Luxury Midnight Skyline Pavilion in the Pacific Northwest

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CORT Tenting Solutions, a Berkshire Hathaway company and leader in event structures, has introduced the Midnight Skyline Pavilion, a luxurious event structure poised to redefine the Pacific Northwest’s event landscape.

Exclusively designed for CORT, the Midnight Skyline Pavilion boasts a sleek midnight black frame with clear ceilings and sidewalls, creating a striking, floating effect. Its versatile design allows it to transform from a modern conservatory to a grand cathedral-like space, providing a captivating centerpiece for any occasion.

The Pavilion’s modular build offers numerous customization options, including a choice of walls (opaque, glass, or hard), elegant glass doors, and elevated flooring. Clients can personalize each element, tailoring the structure to fit any vision. “The Midnight Skyline Pavilion represents our commitment to quality and innovation,” said Phil Heidt, Group Vice President at CORT. “Its modern aesthetic and versatility make it a game-changer for memorable events.”

Built for durability, the Pavilion withstands all weather conditions, making it a reliable choice for events year-round. Janelle Doig of the Museum of Pop Culture attests to CORT’s reliability, saying, “Their attention to safety and style lets us focus on guest experience.” Partnering with luxury manufacturers like Losberger De Boer, CORT continues to bring top-quality event solutions to market.

© 2024 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 a 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.

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Lubrizol

Lubrizol Expands Partnership with Oil Store Across Europe, Middle East, and Africa

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The Lubrizol Corporation, part of Berkshire Hathaway, has expanded its partnership with Oil Store, naming it a channel partner for Lubrizol’s refrigeration and heat transfer fluid brands across the U.K., Europe, the Middle East, and North Africa. This move builds on an already successful collaboration in the U.K., aiming to meet increasing demand in new markets.

Lubrizol provides a range of premium fluid engineering brands, including CPI® industrial refrigeration products, Paratherm® heat transfer fluids, and refrigeration solutions such as Emkarate RL®, Icematic®, and Solest®. Through this partnership, Oil Store can now deliver Lubrizol’s technology and solutions across a wider geographic area, addressing specific market needs.

“Reliability is crucial to us, which is why we seek partners who share our commitment to excellence,” said O’Neil Pinto, Vice President of Lubrizol Fluid Engineering. “This collaboration with Oil Store supports our growth and customer service goals.”

Daniel Tait, managing director of Oil Store, praised the success of the initial U.K. partnership, adding, “We are thrilled to extend our services to new regions, maintaining the quality and dedication our U.K. customers have come to trust.”

© 2024 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 a 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.

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Financials

Berkshire Hathaway’s $26.3B Q3 Profit Driven by Investment Gains

(BRK.A), (BRK.B)

Berkshire Hathaway reported a sharp improvement in its third-quarter 2024 results, showing a net profit of $26.3 billion, a significant rebound from a $12.8 billion loss in the same period last year. This surge was largely due to strong investment gains of $16.2 billion, compared to a substantial investment loss of $23.5 billion in Q3 2023.

Warren Buffett has long cautioned that changes in portfolio value do not give a true picture of the company’s health, and points to Berkshire’s operating earnings as a better barometer.

The conglomerate’s operating earnings were slightly down, totaling $10.1 billion, compared to $10.8 billion in the previous year’s third quarter.

Key contributors to operating earnings included insurance underwriting and investment income, as well as steady returns from its BNSF railway and energy businesses.

Earnings per Class A share rose to $18,272, compared to a loss of $8,824 per share last year. Meanwhile, Class B shares mirrored this trend, with earnings reaching $12.18 per share.

For the first nine months of 2024, Berkshire achieved $69.3 billion in net earnings, up from $58.6 billion in 2023, reflecting improved returns from both investments and core operations.

Cash on hand swelled to a record $325.2 billion, primarily the result of Berkshire’s continued sale of some of its Apple shares and Bank of America shares.

Year to date, Berkshire also repurchased $2.9 billion in shares, however, as the price of the stock has soared to record territory, Warren Buffett has stopped his buybacks, and there were none in the third quarter.

The firm cautioned that quarterly investment gains are volatile and may not fully reflect its long-term performance.

©2024 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 a 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.

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NetJets

New NetJets Terminal in Las Vegas Set to Elevate Private Aviation Experience

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NetJets, Berkshire Hathaway’s private aviation leader, and Signature Aviation, the largest operator of private aviation terminals, have launched a landmark project in Las Vegas. Last week, the companies broke ground on a new, state-of-the-art facility at Harry Reid International Airport (LAS), marking their first new-build collaboration.

Expected to open in 2027, the campus will feature a NetJets-exclusive terminal, a 24/7 NetJets Service Hub™, and two hangars, designed to enhance aircraft access and the travel experience for NetJets’ clients, known as “Owners.”

The custom NetJets terminal will offer a welcoming lobby, dedicated parking, and ramp access for smooth arrivals and departures. NetJets Service Representatives will be available onsite to assist Owners and Crewmembers.

The campus will also include a top-tier maintenance hub with an attached hangar, open round-the-clock to support NetJets’ global fleet. This facility will house a comprehensive parts inventory and a skilled team to ensure aircraft are maintained to the highest standards. A second hangar will serve NetJets’ subsidiary, Executive Jet Management.

Beyond elevating the Owner experience, the project will create hundreds of construction jobs and permanent operational roles, benefiting the Las Vegas economy.

“This extraordinary facility will enhance the world-class service our Owners expect while creating local job opportunities,” said Patrick Gallagher, President of NetJets Aviation. Signature Aviation’s CEO, Tony Lefebvre, added, “This collaboration underscores our shared mission to provide seamless, exceptional private aviation experiences.”

© 2024 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 a 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.