Berkshire Hathaway-Backed BYD’s New E-Platform 3.0 Enables Ranges Exceeding 620 miles

Minority Stock Positions, Stock Portfolio

(BRK.A), (BRK.B)

Berkshire Hathaway-backed BYD has officially launched the e-platform 3.0 for pure electric vehicles. With outstanding advantages in intelligence, efficiency, safety, and aesthetics, the e-platform 3.0 aims to promote new energy vehicle’s (NEVs’) performance in safety and low-temperature driving range as well as improving intelligent driving experiences.

The e-platform 3.0 will help BYD develop more efficient and safer new intelligent electric vehicles (EVs). The new-generation BYD e-platform covers vehicles of varying sizes and will be open to the industry to facilitate the development of intelligent EVs worldwide.

Built upon the e-platform 3.0, the unveiled Ocean-X concept is a mid-size sporty sedan with high performance. The Ocean-X brings brand new experiences in performance and intelligent driving thanks to the fully integrated blade batteries in the car body, an 8-in-1 electric powertrain, and an all-wheel-drive architecture.

Equipped with ultra-safe blade batteries integrated into the car body, the e-platform 3.0 builds up a special pure electric vehicle frame structure to increase the rigidity of the vehicle.

The new platform enables ranges exceeding 1,000 km (620 miles) through the world’s first 8-in-1 electric powertrain. In addition, the world’s first fast charging technology enables a range up to 150 km (93 miles) after a 5-minute charging. The original designed direct cooling and heating system for batteries increases the thermal efficiency by up to 20% while reducing energy loss. Additionally, the heat pump system which can work at temperatures from -30℃ to 60℃, has increased the range by up to 20% in winter, since the system leverages the residual heat from surroundings, the powertrain, passenger compartment and even the batteries. Finally, the brand-new electric AWD system features 0-100 km/h (62 mph) acceleration improved to 2.9 seconds, resulting in energy consumption compared to that of 2WD vehicles, while letting users enjoy the high performance of AWD EVs.

The e-platform 3.0 deeply integrated the drive, braking, and steering system. The industry’s first drive train domain controller has been developed through the full utilization of the electric motors’ fast response and has been applied on the model EA1. BYD’s smart cockpit domain controller and smart body domain controller are already in mass production. As for software, BYD has independently developed the BYD OS which decouples hardware and software, offering an elite collaboration system for high levels of intelligent driving.

On the side of aesthetics, the vehicle features shorter overhangs and a longer wheelbase, significantly expanding the passenger space; a lower body and a longer wheelbase liberate the vehicle’s aerodynamic design, decreasing the drag coefficient to 0.21Cd.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares for $232 million. It’s an investment that has paid off handsomely. Berkshire’s original investment of $232 million had grown in value to $5.897 billion as of December 31, 2020.

© 2021 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.

Lessons From Warren Buffett: We Think About Value, Not Price

Lessons From Warren Buffett, Value Investing, Warren Buffett,

Warren Buffett points out that focusing on a stock’s price, rather than its value, is not the path to success.

“I think it’s almost impossible if you’re to do well in equities over a period of time if you go to bed every night thinking about the price of them. I mean, Charlie and I, we think about the value of them,” Warren Buffett pointed out at the 2003 Berkshire Hathaway Annual Meeting. “If they closed the Stock Exchange tomorrow…It wouldn’t bother me and Charlie [Munger], at all. We would keep selling bricks, selling Dilly Bars, selling candy, writing insurance. You know, a lot of people have private companies and they never get a quote on them. You know, we bought See’s Candy in 1972. We haven’t had a quote on it since. Does that make us wonder about how we’re doing with See’s Candy? No, we looked at the company results…There’s nothing wrong with focusing on company results. Focusing on the price of a stock is dynamite, because it really means that you think that the stock market knows more than you do…So you need to formulate your ideas on price and value, and if the price gets cheaper and you have funds, you know, logically, you should buy more… and we do that all the time. Where we make our mistakes, frankly, is where we focus on price and value and we start buying, and the price goes up a little and we quit, you know, like Charlie referred to, we might have done on See’s Candy. A mistake like that cost us $8 billion in the case of Walmart stock a few years ago, because it went up in price. And you know, we are not happy when things we’re buying go up in price. We want them to go down, and down, and down. And we’ll keep buying more, and hopefully we won’t run out of money.”

Hear Buffett’s full explanation

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© 2021 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.

Berkshire Hathaway Specialty Insurance Adds to U.S. Accident & Health Team

Berkshire Hathaway Specialty Insurance

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance has appointed Beth Freeman as Senior Vice President, Accident & Health Underwriting, and Ken Gumbiner as Senior Vice President, Accident & Health Sales.

“As we expand our A&H capabilities in the U.S., we are so pleased to have Beth and Ken, two exceptionally experienced A&H professionals, to lead these efforts and deliver the full value of BHSI’s brand, financial strength and CLAIMS IS OUR PRODUCT philosophy to the marketplace,” said Phil Gardham, BHSI’s Senior Vice President, U.S. Accident & Health, and Head of Medical Stop Loss. “As we grow our product portfolio, we are continuing to expand our Medical Stop Loss appetite, recently forged a new partnership to provide A&H programs for international students, and we will be launching new A&H products soon.”

Beth comes to BHSI with more than 25 years of experience underwriting an array of A&H products and was, most recently, AVP, A&H Underwriting and Program Business, at Companion Life Insurance Company. Previously, Beth served as Chief Underwriting Officer at Montgomery Management/Spectrum Underwriting Managers, a division of Companion Life. Beth holds a bachelor’s degree in Business Administration from Arcadia University in Pennsylvania.

Ken brings more than three decades of industry experience to his new role at BHSI and was, most recently, SVP, Head of Accident & Health Sales, North America, at Swiss Re Corporate Solutions. Previously, Ken served as Executive Vice President of Sales, IHC Risk Solutions. Ken attended Union Bible College in Westfield, Indiana.

Beth will be based in Philadelphia and Ken will be based in the BHSI office in Indianapolis.

© 2021 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.

Berkshire Hathaway’s TTI Acquires Paragon Innovations

Acquisitions, TTI

(BRK.A), (BRK.B)

Paragon Innovations, a privately held Engineering Design Services firm based in Richardson, Texas, has been acquired by Berkshire Hathaway’s TTI’s Exponential Technology Group (XTG), a leading specialty distributor of electronic components.

Paragon Innovations will continue to operate under the Paragon Innovations brand name, and Michael Wilkinson, company founder will remain in charge of the business as Vice President and General Manager, reporting to XTG President, Michael Knight. “After more than three decades of success and growth, we join Exponential Technology Group at TTI to complement their services and serve a broader clientele,” said Mike Wilkinson. “We look forward to this new venture and becoming part of the team.”

Commenting on the announcement, Knight said, “The Paragon team significantly expands the strength and capabilities of the design services offering within the Exponential Technology Group at TTI. The firm has a remarkable reputation and customer base that has been crafted over the course of thirty years of helping OEM’s big and small bring innovative new products to market. Their involvement runs from the concepting phase through full product design, proof of concept, testing and certification, and readiness for manufacturing.” He further observed, “Paragon perfectly complements Connected Development, the Raleigh, North Carolina IoT design services firm that was acquired by TTI in January of last year. Together, the two companies deploy over 50 electronic hardware, software and mechanical engineers who are experts in a full range of wireless and RF protocols, sensor connectivity, cellular certification, component selection and design for manufacturing.”

The acquisition allows Paragon the opportunity to partner with specialty electronic components distributors and design services that will strengthen its ability to provide services under one corporation, resulting in faster and better services to clients.

© 2021 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.

Berkshire Hathaway Specialty Insurance Appoints David Harries, Executive Underwriter, E&P, UK

Appointments, Berkshire Hathaway Specialty Insurance

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance has announced that David Harries has joined the company as Executive Underwriter, Executive and Professional Lines, UK.

“David will play a key role as we continue to expand our Executive and Professional Lines portfolio, and we are pleased to welcome him to our team,” said Vanessa Maxwell, Head of E&P, UK. “His great depth and breadth of underwriting and leadership experience further elevates our ability to problem-solve with customers and deliver highly customized solutions, backed by unparalleled financial strength and claims service.”

David has more than three decades of experience in both Lloyd’s and company markets in the UK. He was most recently Active Underwriter DCH386 and Head of Financial Lines at QBE Insurance. He holds a bachelor’s degree from Queen Mary University of London.

David is based in BHSI’s office in London.

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.

Lessons From Warren Buffett: It’s Okay to Pay Slightly More for a Wonderful Company

Lessons From Warren Buffett, Value Investing, Warren Buffett,

Investors are often searching for great companies at bargain prices, but Warren Buffett cautions against passing up great companies just because the price is slightly higher than what you think is the ideal price.

“Generally speaking, I think if you’re sure enough about a business being wonderful, it’s more important to be certain about the business being a wonderful business than it is to be certain that the price is not ten percent too high or five percent too high, or something of the sort,” Warren Buffett said at the 1997 Berkshire Hathaway Annual Meeting. “And that’s a philosophy that I came slowly to. I originally was incredibly price conscious. We used to have prayer meetings before we would raise our bid an eighth, you know, around the office. But that was a mistake. And in some cases, a huge mistake. I mean, we’ve missed things because of that.”

Buffett’s full explanation

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© 2021 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 EV Sales Soar to Top of Charts

Minority Stock Positions, Stock Portfolio

(BRK.A), (BRK.B)

Berkshire Hathaway-backed BYD sold 67,630 passenger vehicles in August, up 90.5% year-over-year and 18.7% month-over-month.

New energy vehicles (NEVs) contributed 60,508 units representing an increase of 331.9% year-over-year. Four consecutive months of booming sales and a series of monthly sales records underscore BYD’s successful strategic deployment and the widespread acceptance of its products in the market.

After hitting the 50,000-unit mark, BYD’s monthly new-energy passenger vehicle sales continue to grow, positioning BYD as a dominant player in terms of market share. The continued contribution of DM-i sales fueled further success for the DM model, which saw 30,126 units sold in August, up 555.6% year-over-year. Battery-electric vehicle (BEV) sales rose steadily to 30,382 units in the month, up 222.7% year-over-year.

According to the data of EV Sales, in July 2021, BYD returned to the top of the global NEV sales in a single month after 26 months, surpassing Volkswagen to claim third place in terms of cumulative sales from January to July.

BYD Han, the flagship model of the Dynasty series, sold 9,035 units in August.

BYD views safety as the biggest luxury of electric vehicles. This has allowed the BYD Han to increase safety performance to the highest level in the segment while allowing for optimal performance at the same time. In late July, BYD officially launched the DiLink 4.0 (5G) and the 5G Dynaudio Smart Music Cockpit upgrade package, which was developed for the Han EV all-wheel-drive high-performance flagship model, at the 2021 Chengdu Auto Show, bringing users more intelligent and efficient connectivity experiences.

The Qin PLUS DM-i set another sales record, as it sold 13,043 units in August, becoming the leader among DM models. With the powerful duo Qin PLUS DM-i and Qin PLUS EV, the Qin PLUS sold 20,676 units in August.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares for $232 million. It’s an investment that has paid off handsomely. Berkshire’s original investment of $232 million has grown in value to $5.897 billion as of December 31, 2020.

© 2021 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.

BYD Debuts Two New Battery-Electric Heavy-Duty Trucks

Minority Stock Positions, Stock Portfolio

(BRK.A), (BRK.B)

Berkshire Hathaway-backed BYD has unveiled two battery-electric heavy-duty trucks, the Gen3 8TT and 6F, vehicles that combine performance, reliability, and driver comfort into stylish designs.

Unveiled at the ACT Expo in Long Beach, Calif., the Gen 3 8TT and 6F feature cabs styled by Wolfgang Josef Egger, the renowned former Audi chief designer. The stylish cabs offer improved aerodynamics and energy efficiency.

The trucks come standard with Advanced Driver-Assistance Systems (ADAS), making driving easier and safer.

The trucks are equipped with an Electronic Parking Brake system, offer keyless entry and push to start functions, and have up to 185kW CCS1 charging capability. The extended range version of the 8TT and 6F offer a range of up to 200 miles on a charge.

Gen 3 8TT is a versatile vehicle, capable of performing drayage, regional haul, and distribution work. The 6F can perform regional haul and distribution work. It can also be equipped with a body for refuse collection.

“We listen to our customers and their drivers to ensure we provide the features and performance they need to get a job done,” said Stella Li, President of BYD North America. “With our next generation 6F and 8TT, we’re making history by setting a new standard for driver comfort and safety in an electric vehicle.”

BYD Electric Trucks operate clean and quiet, and have significantly fewer moving parts than carbon-burning trucks. With less noise and vibration than conventional vehicles, BYD trucks provide the operator with an improved driving experience and safer work environment.

BYD, the world’s largest manufacturer of electric vehicles, is the leader in battery-electric truck deployments with more than 8,000 trucks in service around the world and over 200 in service across the United States.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares for $232 million. It’s an investment that has paid off handsomely. Berkshire’s original investment of $232 million had grown in value to $5.897 billion as of December 31, 2020.

© 2021 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.

Lessons From Warren Buffett: What the Wise Man Does in the Beginning, the Fool Does in the End

Lessons From Warren Buffett, Value Investing

Excessive speculation, it’s the downfall of investors and markets time and time again, but as Warren Buffett notes, it often begins benignly when early investors see a previously unrecognized opportunity. However, as word of the opportunity starts to spread, it soon loses all relationship to underlying fundamentals and becomes nothing but sheer speculation and is doomed to end badly.

“But, you know, it’s that old story of what the wise man does in the beginning, the fool does in the end,” Warren Buffett noted at the 2006 Berkshire Hathaway Annual Meeting. “And with any asset class that has a big move, that’s based initially on fundamentals, is going to attract speculative participation at some point, and that speculative participation can become dominant as time goes by.  And, you know, famous case always being tulip bulbs, I mean, tulips may have been more attractive than dandelions or something, so people paid a little more money for them. But once a price history develops that causes people to start looking at an asset that they never looked at before and to get envious of the fact that their neighbor made a lot of money without any apparent effort because he saw this early and so on, that takes over.”

Hear Buffett’s full explanation

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© 2021 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.

Berkshire Hathaway’s HomeServices of America Adds 400 Agents With Latest Acquisition

Acquisitions, HomeServices of America

(BRK.A), (BRK.B)

Berkshire Hathaway’s HomeServices of America, Inc. has acquired of Berkshire Hathaway HomeServices Hudson Valley Properties, the leading real estate company in the Mid-Hudson Valley market for 29 consecutive years.

Financial terms were not disclosed.

Founded in 1980 by Steven Domber and headquartered in LaGrangeville, New York, Berkshire Hathaway HomeServices Hudson Valley Properties serves the counties of Dutchess, Ulster, Orange, Columbia, Putnam and Westchester with more than 400 agents in 13 offices.

For the 12 months ending in June 2021, Hudson Valley Properties closed nearly 4,300 units representing $1.53 billion of sales volume, earning more than a 24% market share.

The company originally joined the Berkshire Hathaway HomeServices network as an independent franchisee in 2014, and with this transaction, joins the HomeServices of America family of wholly owned companies.

Hudson Valley Properties ranks #303 among top 350 real estate brokerages in the United States and is a member of the prestigious Berkshire Elite Circle, ranking #31 in the top 50 brokers of the network worldwide. Domber, founder and president of Berkshire Hathaway HomeServices Hudson Valley Properties, is active in the real estate industry on both the state and national levels. He will continue in his current role as president running the day-to-day operations along with his sales management and leadership team.

HomeServices of America has earned the ranking of the largest real estate company based on closed transactions since 2019.

© 2021 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.