Month: April 2021

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Minority Stock Positions Stock Portfolio

BYD to Only Use Its Blade Battery in All Its Pure Electric Models

(BRK.A), (BRK.B)

Berkshire Hathaway-backed BYD (Build Your Dreams) has announced that all of its pure electric vehicles will now come with the brand’s ultra-safe Blade Batteries, with nail penetration testing fully adopted as a brand standard.
At the same time, the Blade Battery completed an extreme strength test that saw it being rolled over by a 46-ton heavy truck, once again resetting the bar for power battery safety.

In addition, four recently launched BYD pure electric models in the Chinese market, namely the 2021 Tang EV, Qin PLUS EV, Song PLUS EV, and 2021 e2, all are equipped with Blade Batteries.

At present, one of the biggest problems hindering the development of the EV market is the combustion and explosion of batteries. With the rapid growth of this market, the number of new energy vehicles on the road will increase substantially, and the risk of battery safety accidents will rise accordingly, which makes power battery safety of paramount importance.

The Blade Battery has successfully passed the battery industry’s so-called “Everest” test – the nail penetration test, which proves it will never spontaneously ignite. With its outstanding safety, strength, range, long life, and power all well recognized by the market, BYD Han, the first model equipped with the Blade Battery, has sold more than 10,000 units each month consecutively since its launch in July 2020. It has successfully established itself in the mid-to-large luxury sedan market.

To address users’ concerns about the safety of EV power batteries, BYD will only use the Blade Battery in all its pure electric models moving forward. As the No. 1 brand in China’s EV production and sales for eight consecutive years, BYD has always been committed to safeguarding consumers’ safe travel. The entire series equipped with Blade Battery demonstrates BYD’s determination and strategic plan to completely end the safety issues related to new energy vehicles.

BYD has never compromised in its pursuit of safety, constantly adhering to the industry’s more stringent safety standards, like the nail penetration test, which simulates an internal short circuit of the battery, triggering a thermal runaway, which is the root cause for the combustion and explosion of power batteries. The Blade Battery is currently the only power battery in the world that can safely pass the test.

The heavy truck pressure test is a BYD safety standard that is more stringent than the national standard. The test itself saw a 46-ton fully loaded heavy-duty truck drive over the Blade Battery pack, which the battery successfully passed without leakage, deformation or smoke, coming out perfectly intact and ready to be used in an EV. The test results under such extremely harsh test conditions are sufficient to prove the superior performance of the Blade Battery in terms of safety and strength.

BYD boasts 26 years of R&D experience in the battery field and has 100% independent R&D and design capabilities, with the key components such as the Blade Battery production line and equipment all being developed in-house, which is part of the brand’s long-held insistence on independently mastering the R&D and manufacturing of core industrial equipment.

At present, the production capacity of Blade Batteries is rapidly increasing, and the quality is stable and reliable, with some of the auto industry’s key players beginning to rely on this ultra-safe battery technology. As leading global carmakers now partner with BYD subsidiary FinDreams Battery, the Blade Battery is set to be successively installed on EV models of mainstream brands at home and abroad.

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

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Lubrizol

Lubrizol Expands Its Portfolio of Sustainable Ingredients Through Partnership With Advonex

(BRK.A), (BRK.B)

Lubrizol Life Science – Beauty (LLS Beauty) is partnering with Canadian firm Advonex International Corp. to develop renewable ingredients for the beauty and personal care market.

Advonex, which is based in Kingston, Ontario, produces plant-based hydrocarbons through patented processes. These innovative hydrocarbons replace petroleum-based ingredients such as silicone, petrolatum and mineral oil with environmentally favorable components. The hydrocarbons also replicate the sensory experience silicone provides in skin care, hair care and skin cleansing products.

“We’re proud to work with Advonex to further expand our growing portfolio of natural and sustainable ingredients,” said Doug Nalley, North America Business Director LLS Beauty and Home. “We expect this partnership to allow us to develop replacements for silicones in beauty products and help us fulfill our mission to help the world Live Better.”

“Working with LLS Beauty provides Advonex with the market expertise and global distribution that is needed to address the growing demand for alternatives to petroleum-based ingredients in the beauty and personal care market space,” said Chad Joshi, President & CEO of Advonex. “This agreement demonstrates LLS Beauty’s on-going commitment to sustainability and accelerates our ability to enter and serve the personal care market.”

The Advonex partnership is only the latest step in LLS Beauty’s commitment to sustainability. In recent years, Lubrizol has acquired Laboratoire Phenobio, an innovative supplier of naturally derived extracts and natural performance ingredients and formed global collaborations with CP Kelco and Corbion Biotech, Inc., market leaders in nature-based chemistry.

© 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.

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Berkshire Hathaway HomeServices

Berkshire Hathaway HomeServices Expands into India

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices, one of the world’s fastest-growing residential real estate brokerage franchise networks, has expanded into India.

Berkshire Hathaway HomeServices Orenda India marks the brokerage’s first global footprint in India, adding one office and 20 agents, and servicing Northern India including, Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune, Ludhiana, Ahmedabad, Lucknow, Jaipur, and Goa.

“As things are changing quickly from a global perspective, the need to evolve and adapt is only increasing,” said Shrey Aeren, Managing Director, Berkshire Hathaway HomeServices Orenda India. “The values, recognition and consistency of the Berkshire Hathaway HomeServices brand are unmatched by any other and my team and I look forward to bringing that same real estate experience to India.”

“We are excited to welcome Shrey Aeren and his dynamic team to our global network,” said Chris Stuart, CEO, Berkshire Hathaway HomeServices. “Shrey’s leadership, combined with his team’s dedication brings the experience and first-class services that are in perfect alignment with the Berkshire Hathaway HomeServices core values.”

Berkshire Hathaway HomeServices recently added its first brokerage in Portugal, as well.

© 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.

Categories
Lessons From Warren Buffett

Lessons From Warren Buffett: Why P/E Ratios Rise

When Price/Earnings ratios rise, it is the product of two factors, and Warren Buffett detailed them both.

“It’s very simple, the price-earnings ratio, relative price-earnings ratios, move up because people expect either the industry or the company’s prospects to be better relative to all other securities than they have been, than their proceeding view. And that can turn out to be justified or otherwise,” Warren Buffett said at the 1998 Berkshire Hathaway Annual Meeting. “Absolute price-earnings ratios move up in respect to the earning power, or the prospective earning power of, that is viewed by the investing public of future returns on equity, and also in response to changes in interest rates.”

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 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.

Categories
Berkshire Hathaway HomeServices Real Estate

Berkshire Hathaway HomeServices Expands to Portugal

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices has expanded into Portugal with the announcement that Berkshire Hathaway HomeServices Atlantic Portugal has joined its worldwide network.

The startup company will add one additional office and eight agents to the global network. The brokerage will service Cascais, Lisbon, Porto, Comporta, Algarve and all over Portugal.

“In Berkshire Hathaway HomeServices we have found a network that truly recognizes that real estate is more than a transaction, but a relationship,” says Patrícia Salgueiro, CEO of Berkshire Hathaway HomeServices Atlantic Portugal. “The network aligns seamlessly with our values and I am looking forward to continuing the promise of trust, integrity, stability and longevity of work due to our tailor-made services within our brokerage. The Clients are my priority and I want to leave an unforgettable memory of the beginning of a great relationship!”

Patrícia Salgueiro brings years of valuable experience to her role. With a background immersed in the luxury market, she has acquired the necessary skills designed to persevere in a competitive market and create strong relationships all across the globe.

With their brand transition, Berkshire Hathaway HomeServices Atlantic Portugal gains 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 has aligned with best-in-class technology platforms to deliver world-class support to its network members far into the future.

The brand also provides global listing syndication, professional training and ongoing 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.

“We’re proud to welcome Berkshire Hathaway HomeServices Atlantic Portugal,” said Chris Stuart, CEO of Berkshire Hathaway HomeServices. “Patrícia is a skilled and seasoned leader who will effortlessly lead, guide and inspire her team of real estate professionals.”

The new brokerage will also leverage the strength and reliability of the Berkshire Hathaway HomeServices Luxury Collection division, which utilizes an elite network of experienced, service-oriented professionals that combines local expertise with vast global connections, together with marketing resources to deliver the best-in-class results.

Gino Blefari, Chairman of Berkshire Hathaway HomeServices, also welcomed the company to the network, “We’re thrilled to have Berkshire Hathaway HomeServices Atlantic Portugal join the network. Patrícia and her team share our vision to create long-lasting relationships with their clients and truly become Forever Agents.”

© 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.

Categories
Lubrizol

Lubrizol Advanced Materials Gets Green Accreditation for TempRite Brand FlowGuard Plus CPVC Piping System

(BRK.A), (BRK.B)

Berkshire Hathaway’s Lubrizol Advanced Materials’ brand FlowGuard Plus CPVC Pipe has been evaluated by the GRIHA Council and listed as a green product in the GRIHA Green Catalogue under the innovation category.

FlowGuard Plus CPVC piping system is the first piping material that has been granted this enlistment in India.

Manish Jain, Sr. Manager – South Asia, said, “Creating innovative sustainable products is a core pillar of our organization and we are proud to announce that our FlowGuard Plus CPVC Pipe has received the green certification from GRIHA, thus making it the first CPVC enlisted brand in the GRIHA Green Product Catalogue and a preferred material in home building projects in India. This listing will benefit the home and building owners using our products to earn green points under the GRIHA rating scheme of green buildings.”

Lubrizol Advanced Materials’ TempRite’s success on the green certifications and enlistments are on account of years of R&D, Innovation in CPVC technology and transparency in communicating the environmental aspects of the products to the market through lifecycle assessments and detailed environmental product reports for FlowGuard.

© 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.

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Appointments Berkshire Hathaway Specialty Insurance

Berkshire Hathaway Specialty Insurance Appoints Brian Robb Head of Cyber/MPL/Tech in the U.S.

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance has appointed Brian Robb as Senior Vice President, Head of Cyber/MPL/Tech, in the U.S.

“We are pleased to welcome Brian to lead our Cyber, Miscellaneous Professional Liability & Technology E&O team in the U.S.,” said Anthony Tatulli, Head of Executive & Professional Lines, North America, at BHSI. “His expertise adds fuel to our efforts to expand our portfolios and deliver the sound, stable solutions customers are seeking now and for the long-term.”

Brian comes to BHSI after nearly 11 years at CNA Insurance, where his experience spanned both the underwriting and claims sides of the business. He was most recently Product Leader, Cyber/Media/MPL/Tech E&O. Prior to that, Brian held the positions of Cyber Industry Leader and Senior Claim Counsel, Global Cyber and Technology Claims, at CNA. He holds a master’s degree from City University of New York-Baruch College, Zicklin School of Business, and a law degree from Brooklyn Law School. He received a bachelor’s degree in Political Science from the University of North Carolina at Chapel Hill.

© 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.

Categories
Minority Stock Positions Stock Portfolio

BYD Expands Indianapolis Service Center

(BRK.A), (BRK.B)

Berkshire Hathaway-backed BYD has announced the expansion of North American operations, with the opening of a service center in Indianapolis, Indiana to serve its Midwest customers.

The center will provide quick access to parts, care, and expertise for BYD buses and trucks. Customers near the service center include Indianapolis’ transit agency IndyGo, the Kansas City International Airport, and the City of Columbia, Missouri’s transit agency Go COMO. Customers in the region operate BYD buses ranging in size from the 30-foot K7M to 60-foot K11M, BYD’s largest transit bus model. The center will also serve BYD truck customers as that markets grows.

The service center has three service bays, a parts warehouse, and all the equipment necessary to handle customer after-sales care. The center, staffed by a team of eight employees, is open from 7 a.m. to 3:30 p.m. Monday through Friday.

“BYD wants to make sure our customers get quick, expert care,” said Patrick Duan, BYD Senior Vice President. “BYD is committed to top-quality customer service. We are creating a network of service centers to bring BYD and its customers closer together.”

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.

Categories
Lessons From Warren Buffett

Lessons From Warren Buffett: Time Is the Enemy of This Type of Business

Time and investing are inextricably linked, as the time it takes for an investment directly effects your rate of return. And, Warren Buffett also sees time as both friend and foe for companies themselves.

“Time is the enemy of the poor business, and it’s the friend of the great business,” Warren Buffett said at the 1998 Berkshire Hathaway Annual Meeting. “I mean if you have a business that’s earning 20 or 25 percent on equity, and it does that for a long time, time is your friend. But time is your enemy if you have your money in a low-return business. And you may be lucky enough to pick the exact moment when it gets taken over by someone else. But we like to think when we buy a stock we’re going to own it for a very long time, and therefore we have to stay away from businesses that have low returns on equity.”

Buffett’s full explanation on companies with poor returns on equity

See the complete Lessons From Warren Buffett series

© 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.

Categories
BNSF

BNSF Suffers Destructive Fire at Nebraska Terminal

(BRK.A), (BRK.B)

Berkshire Hathaway’s BNSF Railway suffered a major fire at its Alliance Intermodal Facility in Alliance, Nebraska on Sunday, April 11. The fire was in the roof of the structure, but the majority of the damage was caused by smoke and the water used to extinguish the blaze.

The damage was initially estimated at $3 million, including $2 million in damage to electronic equipment.

There were no injuries.

“We did have a structural fire; all our employees were safely evacuated, thankfully,” Amy Casas, senior director of external communications with BNSF Railway, said. “The local fire department managed to extinguish the fire within a few hours. We currently have a temporary worksite set up for any employees who worked out of that building while we conduct inspections and any necessary remediation work to the facility. The cause of the fire is currently under investigation.”

Berkshire Hathaway has been snakebit with fires recently, with a major fire destroying a Lubrizol plant in Rouen, France in September 2019. Last month a fire destroyed a Forest River RV plant in Goshen, Indiana, and on April 7, there was a fire at a Johns Manville plant in Winslow Township, New Jersey.

© 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.