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BYD

BYD Posts New Monthly Sales Record

(BRK.A), (BRK.B)

BYD, the Chinese automobile manufacturer backed by Berkshire Hathaway, continues to shatter sales records with its remarkable performance in the market. The company achieved a significant milestone in May, surpassing its previous sales record of 235,197 units, which was accomplished in December 2022. The figures speak volumes about BYD’s unwavering success in the competitive automotive industry.

During the month of May alone, BYD sold an impressive total of 240,220 new energy vehicles (NEVs), exhibiting a remarkable growth rate of 108% compared to May 2022. This tremendous surge in sales reflects the increasing demand for BYD’s innovative and eco-friendly vehicles, which have captured the attention of consumers worldwide.

Furthermore, the year-to-date sales for BYD have reached an impressive figure of 507,314 units, marking a staggering 97% increase over the first five months of 2022. This remarkable growth signifies the company’s ability to consistently deliver high-quality vehicles that cater to the evolving needs and preferences of the modern consumer.

© 2023 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, 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

NetJets Opens New Maintence facility in Paris

(BRK.A), (BRK.B)

Berkshire Hathaway’s NetJets, the world’s largest private jet operator, has recently unveiled its state-of-the-art Maintenance Service Hub at Paris Airport-Le Bourget. This new facility aims to provide round-the-clock maintenance services for all NetJets aircraft operating in Europe, catering to the growing demand in the region.

In collaboration with JetSupport, the Le Bourget Maintenance Service Hub offers a comprehensive 24/7/365 MRO (maintenance, repairs, and operations) service. With this strategic expansion, NetJets seeks to ensure the smooth functioning of its impressive annual tally of 450,000 global flights. In addition to the new Paris hub, NetJets also operates a maintenance hub at London Luton Airport.

Spanning an area of 4,014 square meters, the Le Bourget service hub hangar boasts an additional 11,329 square meters of ramp space. This extensive facility can comfortably accommodate NetJets’ largest aircraft models, such as the Bombardier Global 6000 and Bombardier Challenger 650. By providing ample capacity, the company aims to maximize aircraft availability and minimize downtime.

Christian Luwisch, the executive director of NetJets Europe, expressed his delight in officially inaugurating the Maintenance Service Hub at Le Bourget. With NetJets’ continued fleet expansion in Europe, Luwisch emphasized the importance of scaling up operational capabilities to ensure uninterrupted service for aircraft owners. Safety remains the company’s utmost priority, and the strategic locations of both Le Bourget and Luton hubs play a crucial role in delivering seamless and proactive servicing.

NetJets’ new Maintenance Service Hub at Paris Airport-Le Bourget is a testament to the company’s commitment to excellence in aircraft maintenance and customer satisfaction. By establishing this 24-hour facility, NetJets reinforces its position as a leader in the private aviation industry, providing reliable and efficient services to its discerning clientele.

© 2023 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: Start From a Good Base

Warren Buffett is renowned for his brilliant investment decisions, but even he admits that some of his early ones were not so great. In particular, he acknowledges that his initial purchase of Berkshire Hathaway was a costly mistake, resulting in a missed opportunity worth $200 billion. Although the company was ailing in the textile industry, he thought it was a cheap opportunity to acquire assets below their book value. However, he later realized that the money required to keep it afloat would have been better spent on acquiring a high-quality business instead.

“Start from a good base,” Buffett said at the 2000 Berkshire Hathaway annual meeting. “Don’t follow our example in that respect. Start out with a good business and then keep adding on good businesses.”

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2023 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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Announcements

Berkshire Hathaway Has Another $200 Million to Put To Work After Seritage Prepayment

(BRK.A), (BRK.B)

Berkshire Hathaway has another $200 million that it needs to invest.

Seritage Growth Properties, a national owner and developer of retail, residential and mixed-use properties, announced that on May 25, 2023, the company made a voluntary prepayment of $200 million toward its $1.6 billion term loan facility provided by Berkshire Hathaway Life Insurance Company of Company of Nebraska.

With the prepayment, $600 million of the term loan facility remains outstanding.

The prepayment will also reduce the amount of interest Berkshire receives from Seritage’s total annual interest expense by approximately $14 million.

© 2023 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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Dairy Queen

Dairy Queen Appoints Two Executives

(BRK.A), (BRK.B)

Berkshire Hathway’s American Dairy Queen Corporation (ADQ), a prominent player in the quick-service restaurant (QSR) industry, has recently made two significant additions to its international business team.

The company, a subsidiary of International Dairy Queen, Inc. (IDQ), announced the hiring of Chris Wren as the vice president of development, international, and Greg Kirian as the vice president of marketing, international. These appointments aim to bolster brand awareness and facilitate restaurant growth outside of the United States and Canada.

Chris Wren brings an impressive background of nearly three decades in franchising and the restaurant industry to ADQ. His extensive executive finance and development experience at renowned companies such as CIT Bank, Dine Brands Global, Wingstop, and Yum! Brands make him a valuable asset. In his new role, Wren will be responsible for overseeing the strategic direction and execution of international business development in both new and existing markets.

Greg Kirian has over two decades of experience in the global food and beverage industry. Having held leadership positions in international marketing at esteemed companies like Little Caesar’s, Wingstop, and Yum! Brands, Kirian is well-equipped to lead brand and marketing strategies for ADQ’s international markets.

The decision to hire strong leaders in marketing and development roles aligns with ADQ’s ambitious business goals of expanding their global footprint beyond the United States and Canada.

Nicolas Boudet, the chief operating officer, international at American Dairy Queen Corporation, emphasized the criticality of such leadership to achieve their objectives. Boudet expressed confidence in both Wren and Kirian, commending their impressive and diverse portfolios of experience in global businesses. Their expertise will be instrumental in driving DQ restaurant growth and enhancing brand awareness in new and existing markets worldwide.

Chris Wren and Greg Kirian both hold master’s degrees in business administration from Southern Methodist University in Dallas, Texas.

International Dairy Queen, Inc. (IDQ), headquartered in Minneapolis, Minnesota, acts as the parent company for American Dairy Queen Corporation (ADQ) and Dairy Queen Canada, Inc. With a presence in over 20 countries, IDQ operates a system of more than 7,000 restaurants.

© 2023 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: Don’t Let Emotion Wreck Your Investing

With a seasoned wisdom born out of decades of astute observation and thoughtful analysis, Warren Buffett urges investors to eschew the siren call of capricious sentiments that too often cloud judgment and lead to grave missteps. For in the delicate dance of financial markets, where fortunes are won and lost amidst the ebb and flow of economic tides, it is the rational mind, steadfast and unswayed by the tempestuous winds of emotion, that emerges victorious.

“We make bad investment decisions plenty of times. I make more than Charlie. I like to think it’s because I make more decisions, but probably my batting average is worse. But, I can’t recall any time in the history of Berkshire that we made an emotional decision,” Buffett said at the 2023 Berkshire Hathaway annual meeting. “You don’t want to be a no emotion person in all of your life, but you definitely want to be a no emotion person in making an investment or business decision.”

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2023 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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Berkshire Hathaway Specialty Insurance

Warren Buffett Lauds Berkshire Hathaway Specialty Insurance’s Remarkable Growth

(BRK.A), (BRK.B)

At the 2023 Berkshire Hathaway Annual Meeting, Warren Buffett showered praise upon a Berkshire company that has quietly achieved remarkable growth in a relatively short span of time. The subject of Buffett’s admiration was none other than Berkshire Hathaway Specialty Insurance (BHSI).

With enthusiasm, Buffett emphasized that BHSI, a company that had blossomed from a mere handful of employees to a thriving workforce of over 1,500 in a mere decade, stood alone as a resounding success story among its peers. Buffett proclaimed, “There’s only been one that I know of, a company started in the last ten years, that has been an overwhelming success. And that’s a company that Ajit (Jain) and four people who joined with him set to develop a new business. It’s called Berkshire Hathaway Specialty.”

Buffett went on to highlight the exceptional achievements of BHSI, particularly its impressive insurance float of $12 billion. He noted that while other companies in the industry struggled to carve out their niche, BHSI thrived without incurring any significant underwriting losses.

Under the guidance of President & Chief Executive Officer Peter Eastwood, who along with three other executives came to the company from AIG, BHSI has grown into a powerhouse insurance company offering a comprehensive range of insurance services, including commercial property, casualty, healthcare professional liability, executive and professional lines, transactional liability, surety, marine, travel, programs, medical stop loss, homeowners, and multinational insurance.

Operating as part of Berkshire Hathaway’s National Indemnity group of insurance companies, BHSI boasted impeccable financial strength ratings of A++ from AM Best and AA+ from Standard & Poor’s, a testament to their unwavering commitment to excellence.

Headquartered in the city of Boston, BHSI established its presence in key locations worldwide, including Atlanta, Chicago, Houston, Indianapolis, Irvine, Los Angeles, New York, San Francisco, San Ramon, Seattle, Stevens Point, Adelaide, Auckland, Brisbane, Cologne, Dubai, Dublin, Hong Kong, Kuala Lumpur, London, Macau, Madrid, Manchester, Melbourne, Munich, Paris, Perth, Singapore, Sydney, and Toronto. This global reach exemplified BHSI’s determination to serve diverse markets and cater to the unique needs of clients around the world.

© 2023 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: Investors’ Fortunes are Tied to Business Profits

In the grip of speculative fervor, as even money-losing enterprises witness their stocks soar skyward, it becomes all too easy to disregard the fundamental truth that enduring triumph in the realm of investments hinges on a company’s profits, not the capricious dance of its price.

“The only money investors are going to make, in the long run, are what the businesses make,” Buffett said at the 1999 Berkshire Hathaway annual meeting. “I mean, there is nothing added. The government doesn’t throw in anything. You know, nobody’s adding to the pot. People are taking out from the pot, in terms of frictional cost, investment management fees, brokerage commissions and all of that.”

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2023 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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BNSF

BNSF Launching Intermodal Service From Houston Port to Dallas & Denver

(BRK.A), (BRK.B)

Berkshire Hathaway’s BNSF Railway, in a bid to enhance their service offerings, has revealed plans to launch intermodal service options from the Port of Houston to two major destinations: Dallas/Fort Worth and Denver.

Commencing on June 2, this new endeavor will witness BNSF providing on-dock rail service from Barbours Cut Container Terminal at the Port of Houston.

The intermodal facility in Alliance, Texas, will serve as a key point of connection for this service, catering to the bustling Dallas/Fort Worth area. Additionally, BNSF’s intermodal facility in Denver will be another vital destination accessible through this service.

By introducing these intermodal service options, BNSF aims to bolster supply-chain efficiency while capitalizing on the escalating demand for intermodal transportation at the Port of Houston.

The Port of Houston, being one of the busiest ports in the United States, serves as a critical hub for international trade and commerce. The availability of efficient and reliable intermodal services is vital for facilitating the smooth flow of goods and ensuring seamless connectivity between various regions. BNSF’s decision to launch this new service demonstrates their foresight and understanding of the market’s demands.

The intermodal sector has witnessed significant growth in recent years, with businesses increasingly recognizing the benefits of integrating multiple modes of transportation to optimize their supply chains.

© 2023 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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BNSF

BNSF Rebuffed in $21.7 Million Settlement Offer With Swinomish Tribe

(BRK.A), (BRK.B)

BNSF Railway, a subsidiary of Berkshire Hathaway, recently found their attempt to settle a lawsuit with the Swinomish Tribal Community met with rejection.

The company had offered a settlement sum of $21.7 million, only to have it dismissed by the tribe. In response, the freight railroad has requested the involvement of a federal judge to appoint an arbiter who can determine an appropriate settlement, as the tribe did not provide a response to BNSF’s offer.

The lawsuit in question was initially filed back in March 2015, asserting that BNSF had breached the terms of a right-of-way easement granted to them by the railroad.

According to the Swinomish Tribe, BNSF had exceeded the agreed limits on train and car crossings outlined in the agreement. The violation was deemed to be conscious and deliberate by U.S. District Court Judge Robert Lasnik, who issued a ruling on March 27. Judge Lasnik also pointed out that this transgression was motivated by the pursuit of profits.

The primary concern of the Swinomish Tribe revolves around the potential risks posed to their waterways by the transportation of oil via trains passing over the Swinomish Channel. This channel acts as a crucial link between Skagit Bay in the south and Padilla Bay in the north. The tribe’s historical treaty rights safeguard their fishing activities, and they are apprehensive that BNSF’s transportation of Bakken crude oil, in a manner and quantity that contravenes the explicit terms of the easement agreement, may jeopardize their way of life. Furthermore, the tribe asserts that BNSF had operated these trains without obtaining their consent or permission.

Should BNSF lose the lawsuit, they could potentially face significant damages.

The Swinomish Indian Tribal Community holds the status of a federally recognized tribe residing in the Pacific Northwest, specifically in the state of Washington. Their ancestral connection to the Skagit River-Delta of Puget Sound spans numerous centuries, during which they have relied on fishing in the region’s brackish waters. The tribe’s historical treaty rights serve to safeguard their cultural heritage and way of life, and their deep-rooted ties to the land and waterways are self-evident.

The tribe’s concerns regarding the threat posed by oil trains to their waterways are not without foundation. The Swinomish Channel, which the trains traverse, stretches over 11 miles and links Skagit Bay in the south to Padilla Bay in the north, forming a separation between Fidalgo Island and mainland Skagit County. Any accidents or spills involving these trains could have dire consequences for the local environment, potentially leading to water contamination, harm to aquatic life and wildlife, as well as damage to tribal lands.

The Swinomish Tribe’s anxieties materialized on March 16 when two BNSF locomotives derailed on the Swinomish Indian Tribal Community Reservation, resulting in the spillage of diesel fuel. As a result, cleanup efforts were undertaken, involving the removal of roughly 2,100 cubic yards of contaminated soil and 4,300 gallons of groundwater from the site.

This struggle for their land rights is not the first instance in which the tribe has had to contend with external forces. The passage of trains through the tribe’s land has a long and contentious history, beginning with the laying of the original tracks in the late 1800s, without the consent of the Swinomish or the U.S. government. These tracks intersect with the northern boundary of the reservation, and the Swinomish, as the contemporary political successor to certain tribes and bands that signed the 1855 Treaty of Point Elliott, initially filed a lawsuit against the railroad in 1976.

© 2023 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.