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Lessons From Warren Buffett

Lessons From Warren Buffett: Most Businesses that Require Huge Capital Investments Make Poor Investments

Warren Buffett warns that most companies that need constant large capital investments usually turn out poorly for investors.

“Most fields that require heavy capital investment, most of the time, they don’t turn out very well over time,” Buffett said at the 2000 Berkshire Hathaway annual meeting. “There are plenty of exceptions to that, but if you find a business that has to keep adding up huge sums of money every year, there always will be a reason why they’re doing it. But the net result, after five or 10 or 20 years usually isn’t very good.”

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© 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

Berkshire Hathaway Specialty Insurance Names Ben Ruddlesdin Head of Professional Indemnity in London

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance has promoted Ben Ruddlesdin to Head of Professional Indemnity & Cyber (UK). He was previously Senior Underwriter, PI & Cyber.

“Ben has been integral to the growth of our PI portfolio over the past three years,” said Jessica Kirby, Head of Executive and Professional Lines, UK. “In his new role, he will work closely with Executive Underwriter David Harries and our exceptionally experienced team to take our PI presence to the next level, as we continue our growth into more primary and lead positions.”

Ben has nearly 10 years of industry experience and has held a variety of increasingly senior roles within the Professional Indemnity market.

He continues to be based in London.

© 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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BYD

BYD Signs MOU with Octopus Electric Vehicles UK

BYD, the world’s leading manufacturer of new energy vehicles, has signed a Memorandum of Understanding (MOU) with Octopus Electric Vehicles Ltd.

Octopus EV plans to purchase 5000 new energy vehicles from BYD for UK customers over the next three years. They will be available in conjunction with the Salary Sacrifice scheme providing one of the most economical ways of leasing a BYD car in the UK.

The start of this commercial relationship lays the foundations for Octopus EV to become a BYD Partner for the Salary Sacrifice scheme in the UK, with plans for further orders in the future.

The initial order will include the BYD ATTO 3, an all-electric C-Segment SUV, making its debut in the UK in March featuring BYD’s pioneering EV technology.

The versatile BYD ATTO 3, combining modern aesthetics with an abundance of innovative intelligent technology, is anticipated to have wide appeal for both business and personal customers. It further enhances the increasing range of electric cars available from Octopus EV, as part of its convenient all-in-one service that includes car lease, charge point installation and specialist EV energy tariffs.

Michael Shu, General Manager and Managing Director, BYD Europe and International Cooperation Division, said: “We are delighted to enter this cooperation with Octopus EV. This is an exciting new chapter for BYD as we bring our latest products and leading technologies to customers in the UK, as shown in our innovative range of electric passenger cars, starting with the BYD ATTO 3. BYD staunchly believes in partnerships with like-minded organisations, and our shared commitment to eMobility and sustainable innovation for a greener future endorses our mutual aims.”

Oliver Boots, Chief Commercial Officer of Octopus Electric Vehicles, commented: “When Octopus Electric Vehicles launched, there were only a handful of EVs on the market – we’re now at more than 85 and the figure is rising all the time. Customers have an amazing range of models to choose from, all of which are at the cutting edge of tech and are fun to drive. Being able to partner with BYD as they launch in the UK is a real milestone. They’re a global leader and we’re looking forward to being able to offer our 5* Trustpilot service to customers – accelerating our growth and moving us another step closer to zero-emission transport in the UK.”

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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Lessons From Warren Buffett

Lessons From Warren Buffett: Three Important Principles From Benjamin Graham

Warren Buffett is the best known and most successful of any of the students of Benjamin Graham, author of The Intelligent Investor. He summarized Graham’s teachings as three key principles.

“There’s three important aspects to it. One is your attitude toward the stock market. That’s covered in chapter eight of The Intelligent Investor,” Buffett said at the 1995 Berkshire Hathaway annual meeting. “If you’ve got that attitude toward the market, you start ahead of 99 percent of all people who are operating in the market. So, you have an enormous advantage. Second principle is the margin of safety, which again, gives you an enormous edge, and actually has applicability far beyond just the investment world. And then the third is just looking at stocks as businesses, which gives you an entirely different view than most people that are in the market.”

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© 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 and 3 More Unions Agree to Sick Leave

(BRK.A), (BRK.B)

BNSF Railway and three more of its unions have agreed to an additional four paid days off to use as sick days. The unions are the International Association of Machinists and Aerospace Workers (IAM), the Brotherhood of Railroad Signalmen, and the mechanical and engineering department of the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART-MD).

The Transportation Communications Union, and the National Conference of Firemen & Oilers had already agreed to additional paid sick leave in February .

“BNSF remains committed to continued dialogue, including the potential addition of paid sick days for those crafts that did not already have individual paid sick days prior to the recent national bargaining round,” the railroad stated in a news release.

Starting in December of last year, District 19 set up meetings with BNSF to talk about a number of important issues, including paid sick time. Through a number of in-person meetings and Zoom calls, District 19 leadership was victorious in achieving paid sick time for our members while protecting all other negotiated benefits.

“This is a historic win for our members as we have been fighting for paid sick time for quite some time,” IAM District 19 BNSF Lead General Chairman Kenny Krause said.

District 19 was also able to make improvements and modernize the agreement by incorporating electronic mailing, allowing for better and faster transfer of information. This will also help to speed up the claims process.

© 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: Stick to Your Circle of Competence

Investing within what Warren Buffett calls “your circle of competence” is one of his hard and fast rules. It is one that he has held to throughout his career, even when it has meant passing up tantalizing opportunities.

“Different people understand different businesses,” Buffett said at the 1999 Berkshire Hathaway annual meeting. “And the important thing is to know which ones you do understand and when you’re operating within what I call ‘your circle of competence.’”

Hear Buffett’s full explanation

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© 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 HomeServices

Berkshire Hathaway HomeServices Adds Cayman Islands

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices, a global residential real estate brokerage network, has announced the launch of Berkshire Hathaway HomeServices Cayman Islands.

The Cayman Islands marks the brand’s continued global growth, now with more than 55,000 network agents serving clients throughout 13 countries and territories.

“With a stable economy, high standard of living and beautiful environment, the Cayman Islands could not be more ideal for our next addition to the network,” said Christy Budnick, CEO, Berkshire Hathaway HomeServices. “The addition of Berkshire Hathaway HomeServices Cayman Islands enables us to further service clients in this incredible market.”

Gino Blefari, Chairman of Berkshire Hathaway HomeServices, welcomed the company to the network, “This team’s reputation for ethical, inclusive and cooperative representation makes them a stellar addition to the Berkshire Hathaway HomeServices global network.”

The company is owned by industry leaders Paula McCartney and Anthony Lawson, who together have decades of experience in helping clients buy and sell property in the Cayman Islands McCartney comes from a family of real estate entrepreneurs and is equipped with extensive market knowledge to assist clients. While Lawson’s career is rooted in the construction industry and has excelled in the real estate sector for numerous years.

“There is an undeniable reputation of excellence that is synonymous with the Berkshire Hathaway HomeServices name,” said McCartney. “When consumers hear the name, they are assured they will be met with quality, the strength of the networks and a long-term view of success.”

Berkshire Hathaway HomeServices Cayman Islands is a group of highly motivated agents. The team is knowledgeable in all aspects of real estate from first homes or a luxury vacation condominium. By joining the network, Berkshire Hathaway HomeServices Cayman Islands agents gain access to Berkshire Hathaway HomeServices’ active referral and relocation networks and its “FOREVER Cloud” technology suite, a powerful source for lead generation, marketing support, social media, video production/distribution and more.

Berkshire Hathaway HomeServices Cayman Islands luxury agents also have the opportunity to participate in the Luxury Collection marketing program to promote themselves and premier listings. The Berkshire Hathaway HomeServices Luxury Collection comprises an exclusive group of real estate professionals and an unparalleled portfolio of the most magnificent homes around the globe.

© 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: There’s Nothing Magic About a One-Year Period

Since publicly traded companies report on a quarterly and annual basis it is easy to place a special importance on a company’s performance over those time periods. However, Warren Buffett points out that “there’s nothing magic about a one-year period.”

“The fact that the Earth revolves around the sun really is not totally connected to most business activities, or the fruition of most investment ideas, or anything of the sort,” Buffett said at the 2000 Berkshire Hathaway annual meeting. “We have to report every year, and, you know, I care about the yearly figures in that sense. I don’t really care about them, totally, as a measure of what we’re doing.”

Hear Buffett’s full explanation

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© 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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Marmon Group

EcoWater and Phyn Sign Exclusive Partnership

(BRK.A), (BRK.B)

Berkshire Hathaway’s EcoWater has signed an exclusive partnership with Phyn, the leader in AI-powered leak detection technology, to offer Phyn’s award-winning smart water monitoring solutions to EcoWater’s extensive North American dealer network.

Phyn’s AI-powered leak detection technology measures and analyzes microscopic changes in water pressure 240 times every second to learn and categorize each water fixture in a home. This unparalleled view into a home’s plumbing system allows Phyn to alert homeowners the second a leak is detected, mitigating costly water damage. From drip leaks to catastrophic pipe bursts and everything in between, Phyn monitors a home 24/7 and gives homeowners the tools to ensure that their home is watertight.

Homeowners will now have a suite of product options through EcoWater that both protect against water-related damages and enhance their home’s water in one integrated water solution. Combined, they can potentially lower their insurance costs up to 15% with a Phyn product, while saving money on hard water related costs by prolonging the lifespan of water-using appliances, soaps, and detergents.

Phyn has been widely recognized for its innovation, including honors from the Red Dot Awards, SXSW Innovation Awards, Core 77 Design Awards, IoT World Awards, CES Innovation Awards and GreenBuilder’s Sustainability Awards among others.

Founded in 1925, EcoWater is part of Berkshire Hathaway’s Marmon Holdings.

© 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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Lubrizol

New Mumbai-Based Lubrizol Lab to Develop Alternative to Lithium Soaps

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Berkshire Hathaway’s The Lubrizol Corporation has opened a new grease lab in Navi Mumbai, India, to support the testing and development of calcium sulfonate greases with strong potential in the industrial grease market.

Lithium soaps have long been a widely used thickener for grease applications, but vehicle electrification has led to a dramatic rise in lithium demand in recent years. Over the long term, grease manufacturers will face supply constraints as supply will be favoring battery manufacturers.

“Lithium demand isn’t slowing, and grease manufacturers will very soon require a reliable thickening alternative,” said Sanjeev Kaul, Chairman and Managing Director, Lubrizol Additives India. “We want to help manufacturers throughout the region stay ahead of the curve and sharpen their competitive edge with possible alternate solutions.”

Calcium Sulfonate complex greases-based formulations can be an effective alternative to lithium soaps. OBCS (Over-Based Calcium Sulfonate) provides reliable thickening properties, good compatibility with base oils and additives, and suitable performance for long-term use. Lubrizol’s new India lab will support the rigorous testing required for OBCS formulations to demonstrate their full potential.

“India is a unique market with unique demands,” adds Kaul. “There is limited support available in the form of third-party testing labs in India focused on greases. With this lab, we are supporting small- to mid-size grease manufacturers in the region with grease development and testing services and support that can promote the development of calcium sulfonate based greases and increase their sales.”

© 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.