Rebalancing your portfolio is something that is constantly preached by the financial industry, and if you don’t do it yourself, they are happy to create an account or a fund that does it for you automatically. However, Warren Buffett scoffs at the whole concept and sees it to be more about marketing than good investing.
“The idea that you have, you know, you say, ‘I’ve got 60 percent in stocks and 40 percent in bonds,’ and then have a big announcement, now we’re moving it to 65/35, as some strategists or whatever they call them in Wall Street do. I mean, that has to be pure nonsense,” Warren Buffett said at the 2004 Berkshire Hathaway Annual Meeting. “What you ought to do is have (as) your default position is always short-term instruments. And whenever you see anything intelligent to do, you should do it. And you shouldn’t be trying to match up with some goal like that. . . . But so much of what you see when you talk about asset allocation, it’s just merchandising. It’s a way to make you think that if you don’t know how to determine whether it should be 60/40 or 65/35, that you need these people. And you don’t need them at all in investing.”
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-backed The Kraft Heinz Company is acquiring Assan Foods from privately held Turkish conglomerate Kibar Holding in a deal that values the enterprise at approximately $100 million.
Assan Foods is a rapidly growing sauces-focused business with local manufacturing facilities in Balikesir and Izmir that has been a certified production partner for Kraft Heinz since 2019 and offers Kraft Heinz the opportunity to build its retail and foodservice business across Europe, the Middle East and Africa.
The deal is expected to be completed in the second half of 2021.
“This is a great opportunity to accelerate our international growth strategy centered on Taste Elevation,” said Rafael Oliveira, International Zone President at Kraft Heinz. “We believe Assan Foods is a high-performance organization that brings best-in-class local innovation and production of sauces and tomato products, as well as a significant distribution network in the fast-growing foodservice channel, enabling us to further build our scale and agility by expanding the Heinz brand in Turkey, as well as our International Taste Elevation platform more broadly.”
Headquartered in Istanbul, Assan Foods was established in Balikesir in 1998 as a Kibar Holding investment in the food sector and evolved into one of the top producers in the region. Assan Foods manufactures and sells a wide range of products including tomato paste, ketchup, mayonnaise, and pasta and meat sauces that appeal to a variety of international cuisines and are sold under brands such as Colorado, Kingtom, and Oba, as well as private label. With approximately 400 employees, Assan Foods serves the domestic market and exports to around 50 countries on four continents.
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.
Berkshire Hathaway’s Oriental Trading Company, Inc., the nation’s largest direct retailer of value-priced party supplies, arts and crafts, toys, novelties, and school supplies, will expand its e-commerce presence by launching a third-party seller marketplace powered by Mirakl.
The marketplace is set to debut this summer, and Oriental Trading plans to add millions of curated products to its core product categories from selected brands and sellers.
“Oriental Trading will be the first company in the celebration, education and craft retail space to provide a marketplace of this scale to online customers,” said Steve Mendlik, President and CEO of Oriental Trading Company. “Our company’s vision is about making life more fun and that’s exactly what we’re building for our customers with this new solution. By creating this robust marketplace, customers can easily get everything they need, at the prices they want and in one place.”
“We are thrilled to play a part in helping Oriental Trading launch the first marketplace in their retail space,” said Adrien Nussenbaum, Mirakl U.S. CEO and co-founder. “As a leader in the industry, this marketplace fits perfectly into Oriental Trading’s long-term strategy, allowing them to disrupt the market and strengthen their position as a solution company by leveraging their assortments and value platforms.”
Oriental Trading currently offers over 50,000 products across categories like party supplies, events, toys and games, arts and crafts, teaching supplies, wedding, faith, and home décor.
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.
A North Texas plastics company has filed a proposed class action lawsuit against Berkshire Hathaway’s MidAmerican Energy Services, alleging the electricity supplier passed through unauthorized fees to commercial customers with contracts marketed as fixed-rate plans.
MidAmerican supplies electricity to roughly 15,000 customers in Texas.
According to the filing in federal district court in Marshall, lead plaintiff J&M Plastics, located in Royse City northeast of Dallas, received a statement from MidAmerican in April that included eight line-item charges for “Supplemental Ancillary Services.” Those charges, assessed during the week of the February 2021 winter storm, totaled almost $54,000, more than three times the amount of the company’s typical monthly bill.
The MidAmerican contract states that the fixed-price plan includes “costs associated with line loss…all charges assessed by ERCOT…and other costs required to facilitate delivery of electricity to Customer’s Delivery Points.”
But according to the lawsuit, MidAmerican ignored the terms of its fixed-price agreement and informed customers that “MidAmerican Energy Services will not increase the energy component of your bill, however, non-energy costs such as ancillary charges billed by ERCOT and your local utility, are not fixed and are passed through on your bill.”
J&M management kept the 55,000 square foot facility heated during the storm to keep pipes from freezing but did not operate. The company employs more than 40 full-time workers and manufactures a variety of consumer products from recycled plastic.
“MidAmerican has already acknowledged that it can’t pass through these same costs to their residential and small business customers, because of the Public Utility Commission’s consumer protection regulations,” says Derek Potts of the Potts Law Firm in Houston. “But the company’s still trying to unlawfully use a statewide disaster to take advantage of and price-gouge thousands of larger commercial customers.”
“They can’t justify passing through these costs when J&M and other customers agreed to a fixed-price electricity plan, which specifically includes any ancillary and ERCOT-assessed charges,” says Potts.
The lawsuit alleges violation of the Texas Deceptive Trade Practices Act, among other claims for breach of contract, negligence and misrepresentation.
The lawsuit is J&M Plastics, Inc. v. MidAmerican Energy Services, Case No.2:21-cv-00206, filed in the U.S. District Court for the Eastern District of Texas in Marshall.
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 HomeServices, one of the world’s fastest-growing residential real estate brokerage franchise networks, has expanded into Greece.
Berkshire Hathaway HomeServices, one of the world’s fastest-growing residential real estate brokerage franchise networks, announced today that ENEA Real Estate is now part of its global brokerage network and will operate as Berkshire Hathaway HomeServices Athens Properties. The company will add one office and 18 real estate consultants to the global network and will service Attica as well as the main tourist destinations of Greece.
“When I established ENEA Real Estate, my vision, and promise was to create a real estate brand that would be the consumer’s first choice for the Greek real estate market,” said Kyriakos Xydis, Managing Partner of ENEA Real Estate. “Now that we are part of the global real estate network of Berkshire Hathaway HomeServices, we can now take that vision and expand so much further with the resources available to network members.”
“Joining Berkshire Hathaway HomeServices brand gives us the opportunity to be part of a strong global brand, which is widely recognized and respected,” said George Karakovounis, ENEA Real Estate Partner. “We have important goals over the next few years, and we knew making this decision would put us on route to achieve them.”
“I am thrilled to welcome Kyriakos, George and their team of ambitious real estate professionals to our global network,” said Chris Stuart, CEO of Berkshire Hathaway HomeServices. Joining the network will elevate the team’s already locally trusted company globally. “Under the Berkshire Hathaway HomeServices name, their leadership and agents are immediately connected to over 50,000 real estate professionals around the globe.”
By joining, Berkshire Hathaway HomeServices Athens Properties 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 has aligned with best-in-class technology platforms to deliver world-class support to its network members far into the future.
Berkshire Hathaway HomeServices Athens Properties will also have full access to the recently unveiled, Real Estate I.Q. System. The System combines the Berkshire Hathaway HomeServices brand, marketing resources and technology with continuing education, training, mentoring and consulting. 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 clients.
“We are excited to enter the market of Attica with a excellent company such as ENEA Real Estate,” said Gino Blefari, Chairman of Berkshire Hathaway HomeServices. “The Greek real estate market offers tremendous opportunities and we are thrilled to officially welcome Berkshire Hathaway HomeServices Athens Properties as our first brokerage in this renowned location.”
Berkshire Hathaway HomeServices recently added its first brokerage in India and Portugal, as well.
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.
You have done your research and identified a great company. It’s a company that you think will grow and bring great returns for the next 20-30 years, and you are dying to add it to your portfolio. But then a little voice creeps into your head, saying “Maybe I should wait for a price decline?” So, should you wait for price declines before buying great companies?
“I think it’s better just to own them,” Warren Buffett said at the 1996 Berkshire Hathaway Annual Meeting. “So, to sit there and hope that you buy them in the throes of some panic, you know, that you sort of take the attitude of a mortician, you know, waiting for a flu epidemic or something… I’m not sure that will be a great technique.”
(Note: That this doesn’t mean that you should buy at any price, and that Buffett says that he wouldn’t buy a stock if it is selling at an “egregious price.”)
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.
BHE Renewables, a subsidiary of Berkshire Hathaway Energy, has completed the acquisition of the 54-megawatt Independence wind energy project from RPM Access LLC, a small regional developer of utility grade wind generation projects in the Midwest.
Located near Ryan, Iowa, the project consists of 18 GE 2.8-megawatt wind turbines and two GE 2.3-megawatt wind turbines and will be completed in fourth quarter 2021. The project will serve Central Iowa Power Cooperative under a 20-year power purchase agreement signed in 2020 by RPM Access.
“The addition of the Independence wind project grows our wind energy portfolio to 1,719 megawatts and provides another opportunity for us to meet the growing demand for energy generated from renewable resources,” said Alicia Knapp, president and CEO of BHE Renewables. “We are excited about this project and look forward to finding more opportunities to own and operate renewable energy resources that support a cleaner energy future.”
BHE Renewables other wind projects include the 300-megawatt Jumbo Road project near Hereford, Texas; 168-megawatt Pinyon Pines I and 132-megawatt Pinyon Pines II projects, located near Tehachapi, California; 81-megawatt Bishop Hill II project in Henry County, Illinois; 400-megawatt Grande Prairie project in Holt County, Nebraska; 72-megawatt Marshall project in Marshall County, Kansas; 212-megawatt Walnut Ridge project in Bureau County, Illinois; and the 300-megawatt Santa Rita wind project in Reagan and Irion counties in west-central Texas.
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 has launched a full line of marine insurance products in France and appointed Muriel Birre Julvécourt as Head of Marine.
The new marine offerings include: Inland Marine, Ocean Cargo, Stock & Transit, Project Cargo, Freight Forwarders Liability, Ports & Terminals, and Subsea Insurance.
“We are very excited to further round out our offerings for customers and brokers in France with marine insurance, backed by BHSI’s financial stability, long-view underwriting, and CLAIMS IS OUR PRODUCT® philosophy,” said François-Xavier d’Huart, Country Manager, France. “Muriel is well known in the local marketplace and we are excited to have her deep technical expertise and excellent leadership capabilities leading our entry into this new line.”
Muriel comes to BHSI with more than 25 years of marine underwriting experience. She was most recently Head of Marine at RSA Group. Before that, she held various management roles in Marine at Groupama Transport. She was a member of the Marine Committee of the French Federation for Insurance Companies (FFA) for nearly 10 years, and holds a master’s degree in Insurance Law from the University of Paris Panthéon Assas.
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.
BYD UK and Alexander Dennis Limited (ADL) have announced that their electric vehicle partnership has delivered its 500th electric bus.
The zero emission double decker has joined the fleet of the partnership’s launch customer, Go-Ahead London, as orders for the next 500 BYD ADL electric buses have already been confirmed for public transport operators across the UK.
BYD is a global leader in batteries, energy management and electric mobility, while ADL is a subsidiary of leading independent global bus manufacturer NFI Group Inc. (NFI).
BYD and ADL signed a partnership agreement in October 2015, and the partnership delivered its first buses the following summer.
Its electric buses for the UK and Ireland are built in Britain, ensuring that investment in cleaner transport benefits communities across the country, as well as the environment.
Less than five years after rolling out the first, the partnership has now delivered the 500th BYD ADL electric bus. This BYD ADL Enviro400EV double decker is one of 20 that have joined the Go-Ahead London fleet for Transport for London route 69 between Walthamstow and Canning Town.
Go-Ahead London has worked closely with the BYD ADL partnership since its inception, becoming its launch customer in 2016 and continuing to support product development with its operational experience. This has made Go-Ahead the country’s biggest operator of electric buses, including nearly half of the 500 BYD ADL electric buses delivered so far.
Frank Thorpe, Managing Director of BYD UK, said: “We were delighted in 2015 when Go-Ahead London embarked upon their journey towards electrification with us, and we’re even more thrilled today as we celebrate the handover of the 500th BYD ADL electric bus. It’s a very significant milestone, and not only for the BYD ADL partnership. It demonstrates clearly the commitment of the nation’s capital to decarbonization, with eMobility playing an increasingly fundamental role in delivering a cleaner transport system for millions of people. Operators like Go-Ahead London, with the BYD ADL partnership in support, really are leading the charge.”
ADL UK Sales Director, Martin Brailey said: “As we prepare to transition chassis assembly to our UK facilities to deliver a product fully built in Britain, the BYD ADL partnership’s winning combination of class-leading technology and design expertise continues to set the standard for electric buses. This has been made possible by our customers, and none more so than Go-Ahead London, who were the first outside China to convert an entire depot to electric operation with the launch order five years ago and who continue to challenge us to deliver ongoing innovation.”
John Trayner, Go-Ahead London’s Managing Director, said: “It is fitting that this significant milestone took place at Waterloo, our global award-winning all-electric bus garage. Waterloo pioneered electric bus technology in 2013 and it quickly proved reliable in the capital’s high frequency and demanding stop/start operating environment. Along with the Mayor, Transport for London and other important infrastructure partners, we are seamlessly transitioning the capital’s iconic red bus fleet to deliver a zero-emission public transport offering. Congratulations to the BYD ADL partnership on reaching 500 e-bus deliveries.”
Richard Harrington, Go-Ahead London’s Engineering Director, added: “We know that our people enjoy driving and maintaining what was, until relatively recently, a new technology. Go-Ahead London has a proud history of innovation and as our buses switch from diesel to other technologies, our experience as the UK’s largest e-bus operator, with over 200 BYD ADL electric vehicles in service, will prove invaluable.”
The BYD ADL partnership has already taken firm orders for the next 500 electric buses, expected to be delivered over the next twelve months and taking the partnership’s total to over 1000.
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.
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.