Month: March 2018

Categories
GEICO Insurance

GEICO Adding More Than 1,400 Employees in Indianapolis

(BRK.A), (BRK.B)

Insurer GEICO plans to add more than 1,400 new associates–including hundreds of IT professionals–as the company grows its operations in Greater Indianapolis.

The company’s office, at 101 W. 103rd St. in Carmel, will nearly double in size after an expansion that will add an additional 104,000 square-feet.

With the larger space, GEICO Indianapolis will add IT and claims positions to its existing sales, service and emergency roadside operations.

The GEICO Greater Indianapolis office brought more than 250 jobs to the area when it opened in the summer of 2013. Over the years, the office has more than quadrupled its workforce to more than 1,100 associates to become one of the area’s largest employers.

“The support of this thriving community and our growing customer base in Indiana have made this expansion possible,” said Lona J. Montgomery, general manager of the Indianapolis office. “We are excited to bring on new associates to help us continue to offer excellent service to our customers across the state.”

Nearly 350 IT and claims positions will be added this year, with the others slated to be added over the next five years.

© 2018 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.

Categories
Minority Stock Positions Stock Portfolio

BYD Lauded as One of the Most Innovative Companies

(BRK.A), (BRK.B)

New energy technology company BYD has been named one of the year’s Most Innovative Companies by Fast Company for the fifth time since 2009.

This year, Fast Company is honoring BYD as one of its Top 10 Most Innovative Companies in Energy.

BYD was selected from a list of fifteen hundred companies.

The Fast Company accolade continues a legacy of recognition for the most-awarded electric bus manufacturer in the world. BYD has now been honored more than a dozen times by international media outlets, government agencies, nonprofits and trade associations for its work in clean air, energy, transportation and technological innovation.

“At BYD, we never stop working to transform the world. We strive to create innovative ways to power and move the world with safe and sustainable technology,” says Stella Li, President of BYD North America. “We are honored to be recognized for our contribution worldwide.”

In addition to being a global leader in rechargeable-battery manufacturing, BYD is the world’s largest manufacturer of battery-electric vehicles for the third year in a row. BYD is also the largest manufacturer of battery-electric buses in North America.

All of these industries are built on BYD’s proprietary Iron-Phosphate battery -— a fire-safe, completely recyclable and incredibly long- cycle technology.

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.

© 2018 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.

Categories
Warren Buffett

“Don’t ask the barber whether you need a haircut,” Says Buffett

(BRK.A), (BRK.B)

With 2017 a quiet year for Berkshire Hathaway’s acquisition activity, save for acquiring a 38.6% partnership interest in travel-center operator Pilot Flying J, Warren Buffett used his 2017 annual letter to shareholders to reassure that Berkshire would continue to make large acquisitions only when the price is right.

Buffett pronounced the Pilot Flying J acquisition as “sensible,” and noted that he would not join other CEOs in paying outlandish prices for companies.

“The less the prudence with which others conduct their affairs, the greater the prudence with which we must conduct our own,” Buffett wrote.

“Why the purchasing frenzy? In part, it’s because the CEO job self-selects for ‘can-do’ types,” Buffett noted. “If Wall Street analysts or board members urge that brand of CEO to consider possible acquisitions, it’s a bit like telling your ripening teenager to be sure to have a normal sex life.

Once a CEO hungers for a deal, he or she will never lack for forecasts that justify the purchase. Subordinates will be cheering, envisioning enlarged domains and the compensation levels that typically increase with corporate size. Investment bankers, smelling huge fees, will be applauding as well. (Don’t ask the barber whether you need a haircut.) If the historical performance of the target falls short of validating its acquisition, large ‘synergies’ will be forecast. Spreadsheets never disappoint.”

© 2018 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.