Month: July 2022

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Stock Portfolio

Berkshire Hathaway Closing in on 20% Stake in Occidental Petroleum

(BRK.A), (BRK.B)

A dip in the price of Occidental Petroleum had Warren Buffett adding more purchases of OXY shares on July 11, 12 and 13. The move comes as crude oil prices have dipped 9 percent this week.

In its latest Form 4 filing, Berkshire spent roughly $250 million for 4.3 million shares of OXY stock at prices ranging from $56.9406 to $59.8491 per share.

After these purchases, Berkshire holds 179,741,891 shares of OXY common stock.

The purchases raise Berkshire’s stake to 19.2%, which has it at the cusp of a 20% stake that would see Occidental Petroleum’s earnings added to Berkshire’s earnings. Currently, only the dividends are added to Berkshire’s financials.

In addition to its stake in OXY common stock, Berkshire also holds 100,000 series A preferred stock shares and warrants that Berkshire can exercise for roughly 84M shares of common stock at $59.624 per share.

© 2022 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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Stock Portfolio

BYD Names Louwman as Dealer Partner in the Netherlands

BYD, the world’s leading manufacturer of new energy vehicles (NEVs), has appointed Louwman as its national dealer partner in the Netherlands.

The strategic partnership with the long-established Louwman Group marks an important phase for BYD as it continues to expand its eco-friendly electric passenger vehicle business.

Louwman will offer a digital platform for online ordering, customer service and assistance, and also provide both offline sales and aftersales services for BYD passenger vehicles through its huge dealer network at key locations across the Netherlands.

Several physical stores will be opened at key locations in the Netherlands, starting with Amsterdam. From September, customers will be able to visit the pioneering store in Amsterdam and review BYD’s latest models.

Louwman Group, has a long and successful heritage in the automotive industry dating back nearly a century. Privately owned, it has become one of the largest automotive companies in Europe with branches in 70 locations associated with many global brands. Louwman, like BYD, has traditionally been involved in many successful collaborations, sharing the same ambitions for a greener future through innovative sustainable eMobility solutions.

Michael Shu, General Manager and Managing Director, BYD Europe and International Cooperation Division: “We are proud to start our BYD passenger vehicles journey in the Netherlands with such an experienced and respected partner as Louwman. Louwman’s market recognition and resources combined, will enable BYD to rapidly establish brand awareness and generate sales of our world-leading new energy passenger vehicles in the Netherlands. Like BYD, Louwman is a business that thrives on being innovative. Together we look forward to achieving our shared vision to accelerate electrification and zero-emission transport in the Netherlands.”

Eric Louwman, President of Louwman Group: “It is an exciting partnership and fits perfectly with our goal of ‘Mobility for Life’. BYD is the world’s leading NEV manufacturer who is known around the globe for groundbreaking battery technology, which is at the heart of all BYD’s impressive new energy vehicles. We are delighted to offer a wide appealing range of eco-friendly BYD vehicles to our customers in the Netherlands with the reassurance of superior safety, long range performance and high standards of all-round quality. Leasing companies are already showing great interest in various models.”

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 $7.69 billion as of December 31, 2021.

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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Berkshire Hathaway Energy

Berkshire Hathaway Purchases Solar Farms in Australia

(BRK.A), (BRK.B)

Berkshire Hathaway’s CalEnergy has purchased two large solar farms, Suntop and Gunnedah, totaling 345 MWp in New South Wales, Australia, from Canadian Solar Inc.

The two projects have long-term offtake agreements with a global leading technology company and will help support corporate decarbonization efforts. The projects have reached substantial completion and are expected to generate over 700,000 MWh of green electricity annually. This is equivalent to avoiding more than 450,000 tons of CO2-equivalent emissions annually or taking approximately 100,000 cars off the road each year.

In addition to the sale of these projects, Canadian Solar and CalEnergy also entered into a multi-year development services agreement that provides a framework for the companies to continue to work together to build out Canadian Solar’s growing renewable energy pipeline in Australia.

“We are delighted to work with CalEnergy in Australia to grow their renewable energy portfolio. The sale of these projects in New South Wales paves the way for a strong collaboration between our respective companies. In Australia, we have now brought seven development projects to NTP (notice-to-proceed) and beyond, and continue to develop and grow our multi-GW solar and storage pipeline. I look forward to continuing to contribute to Australia’s decarbonization and renewable energy growth ambitions.” said Dr. Shawn Qu, Chairman and CEO of Canadian Solar.

© 2022 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: Use Scuttlebutt as a Part of Your Investment Strategy

Famed investor Phil Fisher, author of Common Stocks and Uncommon Profits, believed that there was a lot more work for a successful investor to do besides just reading financial reports. He also focused on scuttlebutt (a word meaning rumor or gossip) to find out what people were saying about a company. It is a method that Warren Buffett endorses.

“When I started out, and for a long time I used to do a lot of what Phil Fisher described. I followed his scuttlebutt method,” Warren Buffett said at the 1998 Berkshire Hathaway Annual Meeting. “ I believe that as you’re acquiring knowledge about industries in general, companies specifically, that there really isn’t anything like first doing some reading about them, and then getting out and talking to competitors, and customers, and suppliers, and ex-employees, and current employees, and whatever it may be.”

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2022 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

Berkshire Hathaway HomeServices Grows in Spain

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices, a global residential real estate brokerage network is pleased to announce that Berkshire Hathaway HomeServices Spain has acquired Nova Mallorca Real Estate, Palma de Mallorca’s leading real estate company since 1969. This addition marks the brand’s continued growth throughout Europe.

Formerly, Nova Mallorca Real Estate Agency, the brokerage will now operate as Berkshire Hathaway HomeServices Nova Mallorca under the leadership of Jorge Forteza, serving as CEO and Co-Owner. Bringing more than 50 years of industry experience to the brand, the company will serve the luxury and residential market of Balearic Islands.

“Joining forces with one of the most renowned names in business and in real estate, we could not be prouder to now be operating as Berkshire Hathaway HomeServices Nova Mallorca,” said Jorge Forteza, CEO and Co-Owner, Berkshire Hathaway HomeServices Nova Mallorca. “This business initiative will allow us to provide an added level of international exposure to our clients and listings.”

“Mallorca and its neighboring islands have long been favorite investment and vacation markets for many decades,” said Christy Budnick, CEO, Berkshire Hathaway HomeServices. “We are excited to welcome Jorge and his team to the brand, instantaneously connecting them to more than 50,000 real estate professionals around the globe. The opportunities for current and future clients will be endless!”

By joining the network, Berkshire Hathaway HomeServices Nova Mallorca 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.

The brand also provides an 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.

Berkshire Hathaway HomeServices Nova Mallorca has offices located in the Palma de Mallorca Metropolitan Area as well as in the prestigious Puerto Portals and is made up of over 20 multi-lingual real estate professionals with decades of experience.

“The luxury and residential real estate market in Spain are seeing strong demand,” said Bruno Rabassa, Partner and CEO, Berkshire Hathaway HomeServices Spain. “People want, more than ever, to spend their time efficiently and live the life they want. Spain has a lot to offer to both locals, foreigners, and remote workers. With the demand, it was important our next business move was to align with the right team and Jorge and his agents will flawlessly serve the clients in this respected market.”

© 2022 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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Minority Stock Positions Stock Portfolio

BYD Passes Tesla in Global EV Sales

(BRK.A), (BRK.B)

Berkshire Hathaway-backed BYD sold a company record 134,036 new energy vehicles in June, as it moved passed Tesla as the global EV sales leader.

BYD sold 641,000 vehicles since January, and is aiming to sell 1.5 million EVs in 2022, which would more than double its 2021 sales.

BYD has also passed South Korea’s LG to move into second-place among global producers of EV batteries. BYD is second only to China’s Contemporary Amperex Technology (CATL).

In mid-June, BYD’s board approved a 33 percent rise in the share price the new energy company can pay to buy back its shares. The company can now pay up to 400 yuan each for shares repurchased from the open market.

The increase in purchase price comes as BYD’s share price is flirting with a new all-time high that has seen its market value move the company into third place among global automakers ahead of Volkswagen.

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 $7.69 billion as of December 31, 2021.

© 2022 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 HomeServices

Berkshire Hathaway HomeServices Expands Presence in Italy

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices, a global residential real estate brokerage franchise network, has announced its further expansion in Rome, Italy. Berkshire Hathaway HomeServices MAGGI Properties Agency has acquired ROMA IMMOBILIARE, a key player in the industry, who has been active in the market for nearly a decade. The brokerage will now operate as Berkshire Hathaway HomeServices ROMA IMMOBILIARE.

Berkshire Hathaway HomeServices ROMA IMMOBILIARE displays know-how and offerings for national and international business expansion. The expertise and vision of future challenges in the market are summed up by its CEO, Francesco Minervini, “All indicators confirm that right now the Capital is the most important bet for national and international investment funds and entrepreneurs. The growing attention is also confirmed by the flow of capital from the global product, service, and hospitality chains. Our extensive experience in real estate in the central areas of the city will be crucial.”

By joining the network, Berkshire Hathaway HomeServices ROMA IMMOBILIARE 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.

The brand also provides an 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.

Christy Budnick, CEO of Berkshire Hathaway HomeServices, commented, “Italy and Rome need no presentation worldwide. The Bel Paese has always garnered incredible and growing interest from foreign investors looking for prestigious solutions. Since our arrival in 2019, our global investors’ enthusiasm for the Roman market and all the “flagship” destinations in the world has been growing steadily. The pandemic crisis and geopolitical instability have created shocks, but luxury does not lose its attractiveness. Our growth continues: joining our network means opening a window of opportunity from around the world.”

Marcus Benussi, Managing Partner & General Counsel of Berkshire Hathaway HomeServices MAGGI Properties Agency, emphasized, “We have found the best partner in the Rome market, and we are confident that this expansion will be preparatory to further growth of our network towards the south, which attracts the international audience of investors. We have great ambitions.”

Berkshire Hathaway HomeServices ROMA IMMOBILIARE has three offices with plans for continued growth within the area over the next few years and is actively involved in several charity programs, including the Cystic Fibrosis Association. Its team of highly experiences real estate professionals collectively has over a decade of experience to service its clients.

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
Lessons From Warren Buffett

Lessons From Warren Buffett: It’s Built Into the System That Stocks Get Mispriced

Those who believe in the Efficient Market Theory espouse that a stock’s price always reflect the total information that is known about a company, so it is impossible to “beat the market,” because it is already priced into the stock. Warren Buffett strongly disagrees.

“It’s built into the system that stocks get mispriced,” Warren Buffett said at the 2012 Berkshire Hathaway Annual Meeting. “I think Berkshire, generally speaking, has come closer to selling around its intrinsic value, over a 47-year period or so, than most large companies. If you look at the range from our high to low in a given year and compare that to the range high and low on a hundred other stocks, I think you’ll find that our stock fluctuates somewhat less than most, which is a good sign. But I will tell you, in the next 20 years, Berkshire will someday be significantly overvalued, and at some points significantly undervalued. And that will be true for Coca-Cola and Wells Fargo and IBM and all of the other securities that I don’t… I just don’t know in which order and at which times.”

Buffett’s full explanation on mispriced stocks

See the complete Lessons From Warren Buffett series

© 2022 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

Berkshire Hathaway HomeServices Grows in Ohio

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices, a global residential real estate brokerage franchise network, is pleased to announce its further expansion in the state of Ohio with the addition of Berkshire Hathaway HomeServices Metro & Fields Realty. This addition marks the brand’s continued growth in the state as its 12th franchise company.

“Our company is laser-focused on operating with integrity and supporting our clients with superior services that align seamlessly with Berkshire Hathaway HomeServices,” said Lisa Yates, Broker and Owner, Berkshire Hathaway HomeServices Metro & Fields Realty. “The brand is built on the core values of trust, integrity, stability and longevity, which seamlessly align with our vision and mission.”

With over 24 years of industry experience, Lisa Yates has had the honor of representing a multitude of clients from first-time homebuyers with all the challenges they encounter to selling prestigious and noteworthy properties for the most experienced sellers. The brokerage will service Central and West Central Ohio, including Champaign, Union, Franklin, Clark, Green, Madison and Logan counties.

“I cannot emphasize enough what valuable industry knowledge, and experience Lisa and her team bring to our global brand,” said, Christy Budnick, CEO, Berkshire Hathaway HomeServices. “The team has great expertise at the local and regional level, and we are proud to welcome them as a new affiliate.”

By joining the network, Berkshire Hathaway HomeServices Metro & Fields Realty 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.
The brand also provides an 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.

Gino Blefari, Chairman of Berkshire Hathaway HomeServices, also welcomed the company to the network, “As we expand further throughout Ohio it’s important we align with industry leaders and teams who convey the Berkshire Hathaway HomeServices core values seamlessly but execute them even more effortless. Lisa and her team are prime examples of just that.”

The brokerage has plans for continued growth throughout the state of Ohio over the next few years and is actively involved in the community with organizations including Future Farmers of America, the Champaign County Historical Society and Champaign County Preservation Alliance where the team assists in restoring historical buildings and the downtown areas of the county.

© 2022 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.