Month: July 2020

Categories
Berkshire Hathaway HomeServices

Berkshire Hathaway HomeServices Announces Addition of Heritage Realty of Central New York to its Global Brokerage Franchise Network

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices today announced that Heritage Realty of central New York, an independent real estate brokerage in operation since 2008, joins the global brokerage franchise network operating as Berkshire Hathaway Home-Services Heritage Realty. The brokerage adds two offices and 19 agents to the network and, most importantly, establishes a presence in the local market of central New York.

Heritage Realty remains independently owned and operated by Dana Decker. It serves central New York from its Homer, NY headquarters. Berkshire Hathaway HomeServices is one of the world’s fastest-growing real estate brokerage franchise networks with more than 50,000 agents and nearly 1,500 offices added to the brand since its launch seven years ago. This includes global network members in Germany, England, Italy, United Arab Emirates, Spain, Portugal and Canada.

“I decided to join Berkshire Hathaway HomeServices because I know the brand is built on pillars of trust, integrity, longevity, and stability. Heritage Realty was built on similar pillars, including integrity and trust,” said Dana Decker, broker and owner of Heritage Realty. “The marriage between these two brands gives Heritage Realty the longevity and stability we have been seeking to provide our clientele with the service they deserve well into the future. Being part of this network guarantees that our clients, agents, and community will have the best in class available in the real estate arena.”

With their brand transition, Heritage Realty agents gain access to Berkshire Hath-away 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 Home-Services delivers world-class technology support to its network members far into the future.

The brand also provides global listing syndication, professional training and on-going education and the exclusive Luxury Collection marketing program for premier listings. Its Prestige Magazine showcases network members’ premium listings with a strong lineup of feature stories covering topics that appeal to high-end real estate consumers.

Gino Blefari, chairman of Berkshire Hathaway HomeServices, welcomed Heritage Realty to the network, “With a focus on positively contributing to their community, Heritage Realty has been doing locally what the Berkshire Hathaway HomeServices brand aims to do globally: help people achieve their goals faster than they would in our absence. We’re so happy to see our vision complemented by Heritage Realty’s.”

Added Decker, “Heritage Realty and Berkshire Hathaway HomeServices have similar cultures built on a results-driven mentality. Both brands understand the importance of the ‘little things’ in a transaction that go a long way. Joining the network assures that Heritage Realty won’t plateau. We will have the tools and re-sources to be on the cutting edge of technology always, which will continue to gain extraordinary results for our clients.”

CEO of Berkshire Hathaway HomeServices, Chris Stuart, stated, “Dana Decker’s vision and Heritage Realty’s culture are a perfect fit for the Berkshire Hathaway HomeServices network. Dana has grounded Heritage Realty in the local community while looking for the technology and tools to help his agents and their clients achieve their goals. We look forward to working together.

© 2020 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
Mouser Electronics

Mouser Electronics Wins Vishay 2019 EMEA High Service Distribution Award

(BRK.A), (BRK.B)

Berkshire Hathaway’s Mouser Electronics, Inc., the industry’s leading New Product Introduction (NPI) distributor with the widest selection of semiconductors and electronic components, has been presented with the 2019 High Service Distribution Award for EMEA by Vishay Intertechnology, one of the world’s largest manufacturers of discrete semiconductors and passive electronic components.

The award is based on a rigorous system where points are given for performance in a number of key metrics including sales, New Product Introductions (NPI) and number of stocked parts.

“This 2019 High Service Distribution Award reflects Mouser’s outstanding level of service and breadth of inventory, making Vishay’s technologies and solutions more visible and available to our mutual customers,” said Philippe Masson, Senior Director, Sales Distribution Europe for Vishay. ”We are happy to present Mouser with this award and congratulate their whole team for such outstanding performance across Europe.”

“We are honored to receive this award. We would like to thank the entire Vishay team and look forward to working together even more closely in the future. Our relationship grows stronger each year and we are proud to receive this prestigious award,” commented Graham Maggs, Mouser’s Vice President of Marketing, EMEA.

This is Mouser EMEA’s seventh Vishay award in eight years, and Vishay also recently named Mouser as the 2019 Americas Catalog Distributor of the Year and the specialized 2019 Americas Catalog Passives Distributor of the Year.

© 2020 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.

Categories
Berkshire Hathaway Energy

PacifiCorp Issues Largest Request for New Energy Projects in Company History

(BRK.A), (BRK.B)

Berkshire Hathaway’s PacifiCorp has issued the largest request for proposals for energy projects in company history, seeking competitively priced resources that can connect to its 10-state transmission system. Already the largest regulated utility owner of wind power in the West, these projects will significantly increase the amount of renewable energy resources serving customers in six western states.

The company does business as Pacific Power in California, Oregon and Washington and as Rocky Mountain Power in Idaho, Utah and Wyoming.

PacifiCorp’s most recent Integrated Resource Plan outlines the company’s plans to add 1,823 megawatts of new solar resources, 595 megawatts of new battery energy storage and 1,920 megawatts of new wind resources by the end of 2023. This is enough to power nearly three million typical homes with renewable energy.

The company will accept bids featuring different resource types and bid structures, including forms of power-purchase, battery storage, and build-transfer agreements. PacifiCorp will not be submitting any self-build resources and therefore won’t be competing with independent developers on their projects. Projects must be able to achieve commercial operation by December 31, 2024. Long-lead projects, such as pumped storage, can submit offers with commercial operation dates beyond December 31, 2024.

“These projects represent PacifiCorp’s longstanding and enduring commitment to create an energy future that is affordable, reliable and increasingly sustainable,” said Rick Link, PacifiCorp vice president of resource planning.
“Our All-Source RFP is a catalyst to help realize that future and enable our customers and communities across the West to benefit from lower-cost renewable energy to grow their economies, run their businesses and homes.”

The 2020 all-source request for proposals is based on findings from a broad range of studies and technical analyses developed through an open and extensive public process, with input from an active and diverse group of stakeholders, including customer advocacy groups, community members, regulatory staff, and other interested parties. PacifiCorp met with stakeholders in five states and hosted 18 public-input meetings over nearly two years to develop a plan to provide the cleanest, least-risk and lowest-cost electricity for customers.

While it is anticipated that most bids will feature wind and solar resources, projects of any variety of qualifying energy production will be considered, allowing developers to present technologies and resources that fit their business model and best position them to compete in the energy market. PacifiCorp anticipates a robust response and a diversity of proposals.

© 2020 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.

Categories
Minority Stock Positions Stock Portfolio

Santiago Adds 150 BYD Electric Buses to Chile’s Public Transport System

(BRK.A), (BRK.B)

BYD has announced that Latin America’s largest fleet of zero-emission buses just got bigger, as Santiago’s RED system added 150 of their buses to Chile’s public transport system.

With a total of 455 buses in operation, BYD firmly leads Chile’s electric bus market.

The buses will run along Avenida Bernardo O’Higgins, the historic central avenue in the Chilean capital and will be operated by Metbus.

“This new fleet of 150 BYD electric buses will bring citizens more quality trips while improving Santiago’s air quality,” said Tamara Berríos, Country Manager, BYD Chile.

Santiago’s electric bus fleet will reach almost 800 units by the end of this year. Chile wants to completely electrify publicnsportation by the 2040.

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.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2020 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.

Categories
BNSF Special Report

Special Report: BNSF and Wabtec Testing Lithium-Ion Locomotive

(BRK.A), (BRK.B)

Wabtec and BNSF Railway Company are testing a lithium-ion battery-powered locomotive, which will be paired with diesel locomotives in a “consist” (railroad jargon for a sequence of connected locomotives) to eventually power a freight train along a stretch of rail in California’s Central Valley between Stockton and Barstow.

Wabtec has begun testing a prototype 4,400 lithium-ion battery-powered locomotive at its Erie, Pennsylvania, plant.

If successful, the fuel savings could have a big impact on BNSF and other railroads. And the environmental benefits could also help BNSF advance one of its major capacity-building projects. Adding even one battery-powered locomotive to the train could reduce the consist’s total fuel consumption by up to 15 percent.

BNSF and Wabtec (formerly GE Transportation) began the pilot program in 2018.

Currently, Wabtec builds new diesel locomotives up to 5,400 horsepower. In addition to locomotives, Wabtec also produces freight cars, passenger transit vehicles and power generation equipment, for both original equipment and aftermarket applications.

BNSF previously looked at liquefied natural gas as a possible alternative to diesel fuel, but ended the project, and has since moved on to battery power.

The leap to battery power is not as big of one as it may at first seem. Diesel-electric locomotives like the machines Wabtec builds are already essentially power plants on wheels. They use a powerful diesel engine to generate the electricity that drives the electric motors that spin the wheels.

Wabtec believes that a battery-powered locomotive is the perfect complement to its diesel-electric brethren. The battery will hold 2,400 kilowatt-hours of energy, meaning it’s able to maintain full horsepower for roughly 30 minutes on a given charge. Then the operator can decide how to use that power.

For example, the operator could slash emissions from the diesel-powered locomotives by drawing heavily on the battery to start up the train. This would be especially desirable if the train were pulling out of a city rail yard, close to populated areas.

Using the battery power also cuts down on noise. The train operator may also choose to “graze” on battery power — or even recharge the battery — when the train is cruising through open landscape, saving hundreds of gallons of diesel.

Each battery locomotive also has a brain, in the form of an onboard supervisory control system. The rail operator can input data about the train’s journey into the system — such as how much weight it’s hauling, the types of locomotives in the consist, and its route — to allow the computer to make decisions about the best way to use the battery before the train even pulls away.

Imagine a battery-enhanced train making a 500-mile trip across sparsely populated terrain — meaning fuel economy is the name of the game. Software will calculate the optimum ratio of battery power to diesel usage for such a journey and decide on the most favorable balance for the hybrid locomotive consist. The software can then pinpoint the exact moments to draw on the battery, thus sparing diesel.

The new locomotive will use a battery cell similar to what you might find under the hood of an electric car. It is a lithium-ion energy storage unit with cells that contain a combination of nickel, manganese and cobalt only far larger.

A standard electric-car battery usually holds a few hundred storage cells — each around the size of a mini tablet computer. But the prototype of the new locomotive will have a battery with approximately 20,000 cells, and future versions may have as many as 50,000 cells. The cells also must be able to weather the heavy-going environment of a locomotive, with all its jolts and shocks.

To build the demonstration model, workers stripped out the engine and cooling systems from a diesel locomotive to make way for the battery under the hood. But from the outside, the battery-powered locomotive doesn’t look much different from its diesel counterparts.

The impact on BNSF could be huge, not only in fuel cost-savings, but if it could use battery-powered locomotives in urban areas, such as the Port of Long Beach, it might be able to overcome the opposition to its long-stalled Southern California International Gateway plan, which has been held up due to environmental concerns tied to diesel emissions.

“We’re developing and testing the ‘next-generation’ locomotive now to build our advantage over long-haul trucks, remain competitive and reduce our operating costs,” BNSF’s Vice-President, Environmental, John Lovenburg, says.

© 2020 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.

Categories
Mouser Electronics

Berkshire’s Mouser Electronics Named MEAN WELL Distributor of the Year

(BRK.A), (BRK.B)

Berkshire Hathaway’s Mouser Electronics, Inc., the authorized global distributor with the newest semiconductors and electronic components, proudly announces that it has been named 2019 North American Distributor of the Year by MEAN WELL, a leading power supply manufacturer. Mouser received the prestigious award for earning top scores in categories such as sales performance, models promotion, marketing and technical and customer support.

“We are delighted to win this prestigious award from MEAN WELL,” said Tom Busher, Vice President of Supplier Management at Mouser Electronics. “Our partnership with MEAN WELL continues to grow, and we look forward to greater collaboration in bringing more MEAN WELL products to our global customer base.”

“We are very pleased to present Mouser with the 2019 North American Distributor of the Year award,” stated Leo Cheong, General Manager, MEAN WELL USA. “Mouser has certainly earned this recognition, and we’re very grateful to have them as a close distribution partner.”

Mouser offers a wide selection of MEAN WELL’s power portfolio for a variety of solutions, including the NMP family of configurable intelligent medical power supplies, HVGC-1000 series of LED drivers for horticulture lighting, and RSDW40/60 and RDDW40/60 DC-DC converters for railway applications.

© 2020 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.

Categories
Acquisitions Berkshire Hathaway Energy Commentary Warren Buffett

Commentary: Buffett Casts His Vote with Dominion Energy Assets Acquisition

(BRK.A), (BRK.B)

With Berkshire Hathaway’s $9.7 billion agreement to acquire Dominion Energy’s natural gas transmission and storage business, Warren Buffett has engaged in a strategy that is familiar to Buffet watchers—the choice between owning a part of a company through equities, or the acquisition of whole companies. It’s a choice that Buffett that has made for almost six decades based on which valuation he judges to be cheaper.

At this year’s annual meeting, Buffett revealed that he had bought relatively few stocks at a time when the market’s plunge had many seeing a rare buying opportunity. Buffett thought differently, and his sale of Berkshire’s entire commercial airline portfolio due to what he felt would be long term profitability issues for United, Delta, American, and Southwest, reflected that perspective.

Now, Buffett has found something he likes. It is an acquisition that makes Berkshire Hathaway a giant in natural gas distribution, vaulting it from carrying 8% of the nation’s natural gas to 18%.

The acquisition adds to one of Berkshire’s core businesses, Berkshire Hathaway Energy, which will acquire 100% of Dominion Energy Transmission, Questar Pipeline and Carolina Gas Transmission; and 50% of Iroquois Gas Transmission System. Additionally, Berkshire will acquire 25% of Cove Point LNG – an LNG export, import and storage facility in Maryland.

The acquisition includes over 7,700 miles of natural gas transmission lines, with approximately 20.8 billion cubic feet per day of transportation capacity and 900 billion cubic feet of operated natural gas storage with 364 billion cubic feet of company-owned working storage capacity, and partial ownership of a liquefied natural gas export, import and storage facility.

Demand for natural gas has risen from 4,917,152 million cubic feet in 1949 to 31,014,345 million cubic feet in 2019, according to the U.S. Energy Information Administration. And with the retirement of more and more coal-fired generating plants, natural gas is a key replacement. Even with the enormous growth of wind and solar, new gas-fired plants are being constructed as backup generation for when the winds are calm and the skies are cloudy.

By making this acquisition, Buffett adds key assets to Berkshire Hathaway Energy that will guarantee a pay-off not just in the short term, but for decades to come. And that’s exactly what Buffet likes, putting money to work for decades to come.

This is not to say that Buffett won’t return to buying equities, but for now, he has voted with his dollars that the better deal in the near term is the acquisition of a whole company.

© 2020 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.

Categories
Acquisitions Berkshire Hathaway Energy Warren Buffett

Warren Buffett Nabs Natural Gas Assets from Dominion Energy

(BRK.A), (BRK.B)

Warren Buffett has finally used his famed “elephant gun” on a key addition to Berkshire Hathaway Energy.

Berkshire Hathaway Energy has executed a definitive agreement to acquire Dominion Energy’s natural gas transmission and storage business.

The assets include over 7,700 miles of natural gas transmission lines, with approximately 20.8 billion cubic feet per day of transportation capacity and 900 billion cubic feet of operated natural gas storage with 364 billion cubic feet of company-owned working storage capacity, and partial ownership of a liquefied natural gas export, import and storage facility.

The transaction has an enterprise value of approximately $9.7 billion.

“I admire Tom Farrell for his exceptional leadership across the energy industry as well as within Dominion Energy,” said Warren Buffett, chairman of Berkshire Hathaway. “We are very proud to be adding such a great portfolio of natural gas assets to our already strong energy business.”

As part of the transaction, Berkshire Hathaway Energy will acquire 100% of Dominion Energy Transmission, Questar Pipeline and Carolina Gas Transmission; and 50% of Iroquois Gas Transmission System.

The agreement does not include acquisition of the Atlantic Coast Pipeline.

Additionally, the company will acquire 25% of Cove Point LNG – an LNG export, import and storage facility in Maryland. Dominion Energy will continue to own 50% of Cove Point, with Brookfield Asset Management continuing to own the remaining 25% share. Berkshire Hathaway Energy will operate the Cove Point facility once the transaction closes.

The Cove Point export terminal is one of only six LNG export facilities in the U.S.

“This premier natural gas transmission and storage business has been operated and managed in a best-in-class manner,” said Bill Fehrman, Berkshire Hathaway Energy’s president and CEO. “Acquiring this portfolio of natural gas assets considerably expands our company’s footprint in several Eastern and Western states as well as globally, increasing the market reach and diversity of Berkshire Hathaway Energy.”

“We are honored to be gaining a wonderful group of employees with a wealth of experience that will continue to provide high-quality service for our customers and partners. We look forward to welcoming them to the team,” said Greg Abel, Berkshire Hathaway’s vice chairman, non-insurance operations, and Berkshire Hathaway Energy chairman.

“We are fortunate Dominion Energy has entrusted us to preserve and build upon such a remarkable business that will allow Berkshire Hathaway Energy to add $9.7 billion in asset value to the portfolio that currently exceeds $100 billion.”

© 2020 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
Insurance

GenStar and Lockton Affinity Launch Architects and Engineers Liability Program

(BRK.A), (BRK.B)

Berkshire Hathaway’s GenStar, a wholly owned subsidiary of General Reinsurance Corporation, has launched its Architects and Engineers program with Lockton Affinity.

GenStar President and CEO Marty Hacala commented, “GenStar is pleased to associate with Lockton Affinity. They are insurance specialists with a proven history of understanding the risks of architects and engineers.”

The GenStar and Lockton Affinity Architects and Engineers Professional Liability program protects architecture, civil engineering, construction management, design build, electrical engineering, HVAC engineering, interior design, landscape architecture, mechanical engineering and surveying professionals. Liability limits up to $2,000,000 will be available on a claims-made basis. Professionals will receive complimentary risk management and contract review assistance, as well as disabled partner replacement.

“Industry professionals will receive comprehensive coverage. Architects and engineers can request a price indication for this new, customized offering, typically in several minutes or fewer,” said Jeff Severino, Producer at Lockton Affinity.

The program is available in the following ten states: AZ, IL, KY, MI, MN, NM, NV, SC, TX, and WY.

The GenStar and Lockton Affinity Architect and Engineer Professional Liability program will be written on an admitted basis by GenStar’s General Star National Insurance Company (GSN), which is rated A++ (Superior) by A.M. Best Rating Services, Inc. and carries an AA+ Insurance Financial Strength Rating from S&P’s Global Ratings.

© 2020 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
Mouser Electronics

Molex Recognizes Mouser as 2019 eCatalog Distributor of the Year

(BRK.A), (BRK.B)

Berkshire Hathaway’s Mouser Electronics, Inc. has been honored by Molex as its 2019 eCatalog Distributor of the Year in all regions.

Molex, a leading global manufacturer of electronic solutions, announced today that the company has presented Mouser with the four distinct awards of recognition as the 2019 eCatalog Distributor of the Year in all regions which represent Global, the Americas, Europe and Asia.

These individual awards recognize Mouser as a valued collaborator demonstrating sales and financial growth coupled with operational and management excellence in advancing Molex innovations on a global scale.

The candidates for the Molex eCatalog Distributor of the Year Award are evaluated in each individual region on multiple performance criteria. In 2019, Mouser excelled in all regions on the critical areas of customer acquisition over the competition and best-in-class for average order growth across all regions for a clean sweep win.

“We extend our congratulations to the Mouser team for their overall contributions to global sales growth and customer promotional activities,” said Fred Bell, vice president, global distribution, Molex. “Mouser has demonstrated a superior commitment to supporting Molex products worldwide with result-driven efforts. We thank them for their continued drive and collaboration in promoting the quality solutions that Molex brings to our customers.”

“Mouser is honored to be a recipient of these awards and we value our relationship with Molex,” said Jeff Newell, senior vice president, products, Mouser Electronics. “We look forward to our continued collaboration and mutual success in offering a broad portfolio of innovative Molex products through the efforts of our regional teams.”

© 2020 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.