Month: December 2022

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Lessons From Warren Buffett

Lessons From Warren Buffett: How Even Bright, Rich People Go Broke

Leverage, the use of borrowed money to increase your return, may be tempting, but Warren Buffett warns against it. Even, rich, successful investors can be ruined when circustances turn against them.

“Whenever a bright person, a really bright person, goes broke that has a lot of money, it’s because of leverage,” Buffett said at the 1999 Berkshire Hathaway annual meeting. “It would be almost impossible to go broke without borrowed money being in the equation.”

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
Minority Stock Positions

BYD Ships 1,200 Cars to Colombia

(BRK.A), (BRK.B)

Berkshire Hathaway-backed BYD has shipped 1200 units of BYD DM-i super hybrid vehicles to Colombia from Xi’an, China.

The exported fleet consists of 200 units of BYD QIN PLUS DM-i and 1000 units of SONG PLUS DM-i, marking an all-time high for individual export volume of DM-i hybrid vehicles from BYD. It marks another step in BYD’s expansion into the Latin American market.

The BYD QIN PLUS DM-i and SONG PLUS DM-i were first launched in the Colombian market in March 2022. The two models, equipped with DM-i hybrid technology, were favored by Colombian consumers for their high fuel efficiency, long cruising range, and premium exterior and interior designs.

Since 2020, BYD has cooperated with its local distributor Motorysa to introduce a series of BYD new energy passenger vehicles to Colombia, including the large- and mid-sized luxury flagship HAN EV, luxury pure electric TANG SUV, and high-end plug-in hybrid models such as the QIN PLUS DM-i and SONG PLUS DM-i.

BYD has delivered nearly 3,000 NEV models to Colombia to date. The company becomes one of the major new energy passenger vehicle brands in the local market, contributing to the green transformation of Colombia’s transportation.

BYD has launched its new energy products in major Latin American countries such as Colombia, Brazil, Mexico, Chile, Peru, Ecuador, the Dominican Republic, Costa Rica, and Uruguay.

The brand has earned a reputation for its eco-friendly and high-tech products as BYD continues to promote the electrification of transportation in Latin America. With an increasing number of its NEV models being introduced overseas, BYD will create a new wave of green travel in the region.

© 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
Announcements

Berkshire Hathaway Appoints New Director

(BRK.A), (BRK.B)

Thomas S. Murphy, Jr. has been elected to the Board of Directors of Berkshire Hathaway Inc.

Mr. Murphy co-founded Crestview Partners in 2004. Crestview is a private equity firm based in New York City. Prior to starting Crestview, Mr. Murphy was a Partner at Goldman, Sachs & Co. Additionally, Mr. Murphy serves on the boards of New York University, NYU – Langone Health and The Inner-City Scholarship Fund.

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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Berkshire Hathaway HomeServices

Berkshire Hathaway HomeServices Grows in Aruba

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices, a global residential real estate brokerage network, has announced its further expansion in Aruba with the addition of Homecity Aruba Real Estate.

The addition marks the brand´s first location in the country and its continued strategic global growth. The company will operate as Berkshire Hathaway HomeServices Aruba Realty.

Owner, Rudolph Kok brings over 15 years of real estate experience. The company is headquartered in Oranjestad, Aruba and has 13 agents servicing the market.

Kok commented, “Aruba is a well-known vacation destination and welcomes a great number of travelers from around the world every single day. We are excited to welcome them now, with the iconic Berkshire Hathaway HomeServices name. The core values of Trust, Integrity, Stability and Longevity are what our foundation is built on, this is a natural fit for this team.”

“Aruba offers a vibrant real estate market, and adds even more value to our global brand,” commented Christy Budnick, CEO, Berkshire Hathaway HomeServices. “Primed for global real estate investors, we look forward to working with Rudolph and the entire Berkshire Hathaway HomeServices Aruba Realty team.”

By joining the network, Berkshire Hathaway HomeServices Aruba 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.

Known for its residential and commercial real estate, Berkshire Hathaway HomeServices Aruba Realty offers a full spectrum of real estate services including buying, selling, luxury and more. Making its clients feel confident and educated every step of the way, the company strives to be a trusted resource that can guide them through the complex world of real estate.

Gino Blefari, Chairman of Berkshire Hathaway HomeServices, welcomed the company to the network, “Berkshire Hathaway HomeServices Aruba Realty emulates our core values and mission with ease. We always seek to align ourselves with individuals and teams who share these matters. We want to welcome them to the network!”

“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.

Categories
Lessons From Warren Buffett

Lessons From Warren Buffett: How a Hockey Great’s Method Relates to Investing

Warren Buffett cites hockey legend Wayne Gretzky for an important principal in investing when it comes to looking at formulas, such as P/E ratios.

“It’s the future that counts,” Buffett said at the 1995 Berkshire Hathaway annual meeting. “It’s like what I wrote there, what Wayne Gretzky says, to go where the puck is going to be, not where it is.”

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
Acquisitions

Berkshire’s Exponential Technology Group Acquires Braemac Pty Ltd.

Berkshire Hathaway, through one of its subsidiaries, has reached a definitive agreement to acquire Braemac Pty Ltd., a specialist in product design, development, testing, and the supply of semiconductors, systems, and electronic components. The financial terms of the deal were not disclosed.

Braemac is based in Sydney, Australia, with 17 offices globally and offers support from design through to product realization, driving innovation with industry-leading semiconductor and electronic component partners providing extensive design and supply chain management expertise.

“We welcome the Braemac team to the XTG family of companies,” said Glenn Smith, acting President of the Exponential Technology Group. “Braemac brings a very experienced management team and a business model that fits extremely well into XTG’s vision of helping engineers solve technical problems as well as having the experience and expertise to design a customer’s smart product from scratch, and then managing the bill-of-materials and supply chain through production.”

Behind these companies lies even more – the strength of XTG’s parent company, Mouser Electronics, a global authorized distributor of semiconductors and electronics components, recognized as the world leader in the introduction of new products with the widest selection of in-stock products for new designs.

As a wholly-owned subsidiary of TTI Inc., Mouser and XTG are part of the Berkshire Hathaway family of companies.

According to Braemac President Jonathan Mitchell, “The Exponential Technology Group is a great fit for Braemac. Companies within XTG maintain their own areas of expertise and focus while collaborating within the group to deliver new technological solutions globally.”

Exponential Technology Group (XTG) is a collection of companies specializing in designing products and supplying semiconductors and electronic components that enable smart electronic systems in automotive, medical, wireless, industrial, and IoT.

XTG operates as an independent member of Berkshire Hathaway’s Mouser and TTI family of companies.

The companies within the XTG group include the Design Services Companies of BGM Electronic Services, Connected Development, and Paragon Innovations, plus the supply chain experts and specialty semiconductor distributors of RFMW Ltd, Symmetry Electronics, Changnam I.N.T. LTD.

© 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

Categories
Minority Stock Positions

Berkshire-Backed Paytm Announces Stock Buyback

(BRK.A), (BRK.B)

Berkshire Hathaway-backed financial Paytm Paytm has approved the repurchase of up to $127 million of its shares inclusive of all taxes and other expenses. The buyback was unanimously approved by the company’s board on Tuesday.

Paytm, which stands for Pay through mobile, is India’s largest mobile payments and commerce platform.

Paytm went public late last year at 2,150 Indian rupees ($26) but has lost some 60 percent of its value.

In 2018, Berkshire Hathaway made a $356 million investment for a 3-4% stake in One97 Communications Ltd, the parent of Paytm.

© 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.

Categories
Berkshire Hathaway Specialty Insurance

Berkshire Hathaway Specialty Insurance Names Cathy Miller to Head of North America Property Team

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance has promoted Cathy Miller to Head of North America Property and announced several other promotions within its North America Property team.

As Head of North America Property, Cathy will oversee the insurer’s general property, energy, builder’s risk and marine business in the U.S. and Canada. She was previously Global Property Underwriting Officer. In other newly announced promotions:

• Greg Freeman has been named U.S. Retail Leader, General Property. In addition to his new role, Greg will continue to play an integral role in BHSI’s North America builder’s risk business. He was previously Head of Retail General Property, U.S. Eastern Region.

• Mark Lees has been named Global Property Underwriting Officer. He was previously Head of Retail General Property, U.S. Western Region.

• Scott Johnson has been named Head of Retail General Property, U.S. Eastern Region. He was previously Head of Retail General Property, U.S. Northeast Region.

• Alison McVeigh has been named Head of Retail General Property, U.S. Northeast Region. She was previously Vice President, U.S. Northeast Region Property.

• Manny Dewani has been named Head of Retail General Property, U.S. Western Region. He was previously Vice President, U.S. Western Region Property.

“BHSI has an exceptional team of individuals with excellent capabilities and strong character bringing our reliable capacity, risk engineering and CLAIMS IS OUR PRODUCT philosophy to the marketplace,” said Sanjay Godhwani, President of North America, BHSI. “I am pleased to tap into our deep bench of talent in making these promotions. All of these leaders have pivotal roles to play as we continue to expand our property portfolio in North America and around the globe.”

BHSI offers a full line of property, builder’s risk and marine insurance products and services in North America and around the world.

© 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.

Categories
Retail

Berkshire Hathaway’s Jordan’s Furniture to Open New Store in Connecticut

(BRK.A), (BRK.B)

Berkshire Hathaway’s Jordan’s Furniture, a popular Massachusetts-based furniture retailer, will open new store in Connecticut in the Westfarms Mall in Farmington. The town is on the outskirts of the state capital, Hartford.

The store will open in 2024, occupying a former Lord & Taylor anchor store, and will feature more than 120,000 square feet of showroom floor space. The store will also have 5,000-square-feet of restaurant and entertainment attraction.

Jordan’s, with the slogan “Not Just A Store, An Experience,” is known for outfitting many of its stores with large entertainment attractions to enhance the shopping experience. Two of its stores have IMAX 3D theaters, and others have multi-level It Ropes Courses with over 30 activities, including zig-zag beams, spaghetti hand lines, angled rope ladders, crisscross walks, and a zip line.

Most Jordan’s are stand-alone locations, and Westfarms Mall will become its third mall location.

Founded in 1928 by Samuel Tatelman, who originally sold furniture out of a truck before opening his first Jordan’s store in Waltham, Massachusetts, the chain really took off in the early 1970s when his grandsons, Barry and Eliot Tatelman, took over the business and added a unique level of showmanship.

Store openings created great fanfare, and the 1987 opening day of the Avon, Massachusetts store reportedly caused the largest traffic jam ever recorded on Route 24.

The regional chain had four locations when it was sold to Berkshire Hathaway in 1999. The chain has since grown its locations, and Westfarms will become the eight location and second in Connecticut.

At the time of the acquisition, the retailer was approaching a quarter of a billion dollars in sales and sold more furniture per square foot than anyone in the U.S. Warren Buffett said, “Jordan’s Furniture is truly one of the most phenomenal and unique companies that I have ever seen. The reputation that Eliot and Barry have earned from their employees, their customers, and the community is unparalleled. This company is a gem!”

© 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.

Categories
Lessons From Warren Buffett

Lessons From Warren Buffett: People Always Want a Formula

Disciplined investors are often trying to find the key investing principals that they can apply that will tell them when to make an investment. However, Warren Buffett points out that it is not that simple.

“People always want a formula. They go to The Intelligent Investor and they think, you know, somewhere they’re going to give me a little formula and then I can plug this in and I know I’ll make lots of money. And it really doesn’t work that way,” Warren Buffett said at the 2002 Berkshire Hathaway Annual Meeting. “What you’re trying to do is look at all the cash a business will produce between now and judgment day, and discount it back at a rate that’s appropriate, and then buy it a lot cheaper than that…So, I wouldn’t want to have a single yardstick, or a, you know, relative P/E that I went by.”

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.