Month: January 2023

Categories
Berkshire Hathaway Specialty Insurance

Berkshire Hathaway Specialty Insurance Names Bart De Wilde Head of Property, Switzerland

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance (BHSI) has appointed Bart De Wilde to lead its growing property underwriting team and portfolio in Switzerland.

“I am very excited to be expanding our Swiss operations with leaders and teammates whose excellent capability and character will drive the best possible experience for customers and brokers seeking stable property solutions,” said Leander Metzger, Country Manager, Switzerland, BHSI. “Bart will build and lead our property team, providing our reliable capacity, risk engineering and CLAIMS IS OUR PRODUCT philosophy to the Swiss marketplace.”

Bart has more than two decades of insurance underwriting and engineering experience. He comes to BHSI from Holcim Ltd, where he was most recently Deputy Head of Group Insurance. He holds a master’s in Industrial Sciences from Catholic University Leuven, Technology Campus de Nayer.

As part of a steady expansion of its global footprint, BHSI opened a new office in Zurich, Switzerland in 2022, where its growing team is offering a full line of commercial property, casualty, and specialty insurance solutions to customers and brokers.

Bart is based in BHSI’s Zurich office.

© 2023 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: Why Buffett Ignores Book Value

Book Value, the total of a company’s tangible assets minus its liabilities, is not a factor for Warren Buffett in buying stocks. In fact, the need for a business to retain cash is the exact opposite of what he is looking for because “the really wonderful businesses require no book value.”

“Book value is not a bad starting point in the case of Berkshire. It’s far from the finishing point. It’s no starting point at all of any kind in whether it’s The Washington Post or Coca-Cola or Gillette,” Buffett said at the 2000 Berkshire Hathaway annual meeting. “It’s a factor we ignore. We do look at what a company is able to earn on invested assets and what it can earn on incremental invested assets. But the book value, we do not give a thought to.”

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2023 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
Berkadia

Berkadia Creates Alliance With Knight Frank

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has formed an alliance with global property consultancy Knight Frank that will offer the firms’ clients unmatched access to domestic and internationally-based capital while maximizing their property values.

“This newly-formed relationship between our two privately-held firms will have innumerable benefits for clients on both sides,” said Berkadia CEO Justin Wheeler. “Berkadia’s depth of industry knowledge and experience will flow seamlessly with Knight Frank’s vast global network and valuation expertise to shift our transaction life cycle into high gear.”

The alliance will offer clients connectivity to and relationships with the world’s most active investors, enabling true relationships with diverse capital sources.

“Together, we have created an alliance focused on our clients’ needs, providing strategic advice and delivering a range of best-in-class capital markets solutions,” said William Beardmore-Gray, Senior Partner & Group Chairman at Knight Frank. “But more than that, we have a shared view of the world, that independent long-term relationships offer a superior experience to all our clients. This is the beginning of a lasting partnership, one which will cultivate both our firms’ collective expertise and suite of services we can offer our global client base.”

Knight Frank and Berkadia offer a combined global network comprising more than 22,750 people across 558 offices in 57 territories, spanning all key capital hubs. Together, they will be one of the world’s leading multifamily brokers.

Knight Frank is an estate agency, residential and commercial property consultancy founded in London by John Knight, Howard Frank and William Rutley in 1896. Together with its American affiliate, Cresa, Knight Frank is one of the world’s largest global property consultancies.

About Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation (now known as Jefferies Financial Group), Berkadia is a third-party commercial mortgage servicer, as well as an approved lender for Fannie Mae, Freddie Mac, and HUD/FHA.

The company is among the top Freddie Mac and Fannie Mae multifamily lenders.

Berkadia owes its origins to GMAC Commercial Mortgage Corporation, which was acquired in 2009 by Kohlberg Kravis Roberts & Co., Five Mile Capital Partners LLC, and Goldman Sachs Capital Partners. Christened Capmark Financial, the company had $10 billion of originations in 2008 and a servicing portfolio of more than $360 billion before running into bankruptcy in October 2009.

In a deal approved by the bankruptcy court, Capmark sold its mortgage loan and servicing to the newly formed Berkadia in a deal worth $515 million.

The deal brought Berkshire into the heart of the commercial loan serving business, and the company has one of the largest commercial real estate servicing portfolios.

© 2023 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 Orenda India to Develop 1,000-Acre Smart City

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices Orenda India will develop a 1,000-acre smart city to be located in close proximity to Navi Mumbai airport.

Maharashtra Chief Minister Eknath Shinde signed a MoU with Berkshire Hathaway Home Services Orenda India for a collaboration to create the social and physical infrastructure for a smart city in the Raigad district.

“As part of this agreement, the firm will help develop a complete ecosystem for industrial, commercial, and residential development, while the government will provide access to land as well as assistance in obtaining various permits and licences,” the company said in a statement.

The announcement comes as Berkshire Hathaway HomeServices Orenda India announced in December 2022 the opening of its new office in Mumbai.

The second office will help the firm’s foray into newer markets beyond northern India, as it looks to significantly ramp up its pan-India presence through 15 regional offices by 2025. The company is currently looking to set up additional offices in Bengaluru and other tier-1 cities, which have traditionally been high-income markets with disposable income.

Warren Buffett’s success as an investor and Berkshire Hathaway’s financial strength are key selling points as the brand expands throughout India.

© 2023 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: A Dollar Is a Dollar No Matter Where It Comes From

Some sectors seem to excite investors more than others, but Warren Buffett is quick to remind investors that no matter the source all dollars are equal.

“A dollar earned from a horseshoe company is the same as a dollar earned from an internet company” Buffett said at the 1999 Berkshire Hathaway annual meeting. “It is not worth more, based on whether it comes from somebody named dot-com, you know, or somebody that named, you know, the Old-Fashioned Horseshoe Company. The dollars are equal.”

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 20223David 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 Announces 2023 Capital Investment Plan

(BRK.A), (BRK.B)

Berkshire Hathaway’s BNSF Railway has announced a 2023 capital investment plan of $3.96 billion. BNSF’s capital investments play a key role in its ability to operate a safe and reliable network while

“Our capital plan reflects our growth mindset and commitment to having the capacity and equipment we need to support our customers. Continued investment in our network through our capital plans helps ensure we run a safe, efficient and growing railroad that provides customers with the service they expect from BNSF,” said Katie Farmer, President and CEO.

The largest component of this year’s capital plan, $2.85 billion, is devoted to maintaining BNSF’s core network and related assets. Investing in BNSF’s existing infrastructure ensures the railroad is in top condition, which results in less unscheduled service outages that can slow down the rail network and reduce capacity.

Maintenance projects include replacing and upgrading rail, track infrastructure like ballast and rail ties, and maintaining its rolling stock. It will consist of nearly 14,000 miles of track surfacing and/or undercutting work and the replacement of 346 miles of rail and approximately 2.8 million rail ties. $402 million of this year’s capital plan is for equipment acquisitions. Over $700 million of this year’s capital plan will be for expansion and efficiency projects, adding to the nearly $2.5 billion invested in expansion projects over the past five years. This year’s expansion plans support the growth of BNSF Intermodal and Automotive, Agricultural and Industrial Products customers.

On its Southern Transcon route between the West Coast and Midwest, BNSF will support traffic growth by beginning the construction of a second bridge over the Missouri River at Sibley, Missouri, completing double track for one of the last segments of single track along the Southern Transcon. The plan continues projects that add several segments of new track in Eastern Kansas and Southern California. It will also begin a multi-year terminal and fueling project near Belen, New Mexico. All four projects will increase capacity throughout the corridor. Also, in the South, BNSF will complete a second main track expansion in Fort Worth. In the Pacific Northwest, BNSF will begin a multi-year project to add double track near Spokane, Washington, including over the Spokane River and by constructing a siding near Pasco, Washington. BNSF will continue multi-year intermodal facility expansion projects in Chicago (Cicero) and Stockton, California. Also, in California, BNSF will continue its track efficiency improvement projects in San Bernardino, along with property acquisitions in the Barstow area, enabling future rail facility and infrastructure development for the Barstow International Gateway Project.

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

Marmon Holdings Acquires AP Emissions Technologies

(BRK.A), (BRK.B)

Berkshire Hathaway’s Marmon Holdings Inc. has acquired AP Emissions Technologies, a leading innovator of emissions control products serving the North American automotive aftermarket. The company is one of the largest tubing manufacturers in the U.S., producing 6,000 miles of tubing per year.

The acquisition was effective Jan. 1, 2023.

Founded in 1927 and headquartered in Goldsboro, North Carolina, AP Emissions Technologies is a vertically integrated manufacturing operation with plants in Hobart, Indiana, and Langhorne, Pennsylvania.

In total, the company employs more than 750 people.

“Marmon was the right buyer for our employees, our customers and our suppliers to take AP to the next level and carry on the company mission,” noted previous owner Vange Proimos. “AP and Marmon have the same principles: investing in its most valuable asset, its people, while remaining focused on developing category leading innovations for the customer.”

The AP management team will continue to lead the business under the leadership of Rich Biel, president and longtime Marmon executive. “I am excited to work with Gary Nix and the whole AP team as we begin this new chapter of an outstanding company,” Biel said. “As part of Marmon, AP will accelerate investments in innovation and automation to make our products even better and grow in value to our customers.”

© 2023 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
Marmon Group

Marmon Industrial Energy & Infrastructure Joins Forces With Concora to Streamline the Specification Process

(BRK.A), (BRK.B)

Marmon Industrial Energy & Infrastructure and Concora have created a new partnership to provide a digital experience transforming the way designers and engineers source and specify Marmon IEI’s products.

Concora Spec is powering Marmon IEI’s new website, www.marmoniei.com, which integrates six of its brands (RSCC, Comtran, Kerite Pump Cable, Harbor Industries Canada, Dekoron Wire & Cable and Dekoron Unitherm) into one central platform. This online product experience, found on the Technical Resources tab, will make it easier for specifiers and design engineers to access and specify Marmon IEI’s scope of products and services. Concora Spec provides a centralized content platform and helpful tools, such as product categories, spec compare, and submittals, to enhance the user experience (UX) for AECs.

“We are honored to partner with Marmon IEI and help them improve engagement with designers and engineers by improving their online user experience and access to Marmon IEI’s comprehensive range of products.” -Eric Snyder, CEO of Concora

“In addition to the ease of use and time savings for designers/specifiers, Concora Spec also empowers Marmon IEI’s sales and marketing teams with access to up-to-date analytics and actionable steps that enhance our customer’s journey.” – Crysta Abell, Marketing Manager for Marmon IEI

Berkshire Hathaway’s Marmon Holdings comprises 11 major business groups that vary from medical care, food services to heavy industry, transportation, construction and more. These groups share expertise, knowledge, and resources with and within each other with a singular focus: the customer. With Marmon’s backing, Marmon Electrical was derived to support energy exploration and production with specialized wire and cable. Within Marmon Electrical, the development of what is now called Marmon Industrial Energy & Infrastructure, uniting 6 various entities known for their high-performance wire, cable and tubing products installed all over the world in some of the harshest environments.

© 2023 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 performance.

Categories
Lessons From Warren Buffett

Lessons From Warren Buffett: The Two Key Questions to Ask Yourself Before Investing

Before getting into any investment, there are two key questions Warren Buffett always asks himself.

“The first question is, can I understand it? And unless it’s going to be in a business that I think I can understand, there’s no sense looking at it,” Buffett said at the 1995 Berkshire Hathaway annual meeting. “There’s no sense kidding myself into thinking that I’m going to understand some software company, or some biotech company, or something of the sort. What the hell am I going to know about it? So, that’s the first threshold question. And then the second question is does it look like it has good economics? Has it earned high returns on capital?”

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2023 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 Announces New Leadership Team

(BRK.A), (BRK.B)

Berkshire Hathaway’s The Lubrizol Corporation has announced the appointment of a new Lubrizol Executive Leadership Team. These experienced business leaders will continue to support the organization’s world-class talent and committed customers, advancing breakthrough chemistry that helps the world Move Cleaner, Create Smarter and Live Better.

“For more than 90 years, Lubrizol science has solved complex challenges and advanced new opportunities across a variety of industries,” said Lubrizol President and CEO Rebecca Liebert. “We’re pairing that history of innovation with strong leadership, drawn from inside and outside our organization, to propel our Lubrizol people, customers, technology and enterprise operations to our next 100 years of growth.”

In addition to oversight by President and CEO Rebecca Liebert, Lubrizol will be led by these proven executive leaders:

Julie Edgar, Senior VP and Chief Technology Officer
Julie Edgar brings more than 25 years of Lubrizol technology and commercial management positions across Asia, Europe and North America to the role of Senior Vice President and Chief Technology Officer, focused on overseeing the company’s technology teams globally. Julie most recently served as Vice President, LZA Transportation, and brings a deep understanding of our chemistry, products and sustainable solutions, having previously served as Lubrizol’s first Chief Sustainability Officer.

Jose Gonzalez-Magaz, Senior VP and Chief Legal Officer
Effective March 1, 2023, Jose Gonzalez-Magaz will join the organization as Senior Vice President and Chief Legal Officer. Jose brings nearly 30 years of experience as a transformative business partner, including expanding commercial opportunities, protecting against and minimizing risk, leading organic and M&A growth, and optimizing the performance of legal teams for global organizations. Jose was most recently with Marmon Holdings, Inc., a Berkshire Hathaway company.

Jeff Lauderdale will serve as Lubrizol’s interim Chief Legal Officer until Jose’s arrival, bringing more than 20 years of legal experience to the role, including a variety of legal leadership positions within Lubrizol.

Shuja Ishrat, Senior VP and Chief Information Officer
Shuja Ishrat was appointed as Senior Vice President and Chief Information Officer. Shuja has nearly 30 years of experience with global business systems development and transformation. He is a hands-on leader and strategic technology executive with a proven history of operational excellence while transforming IT organizations into high-performing teams aligned to business goals. He was most recently with Jabil, a solutions company providing advanced manufacturing and technology services.

James “JT” Jones, Senior VP of Procurement and High-Growth Regions, Chief Procurement Officer
JT Jones will assume the role of Senior VP of Procurement and High-Growth Regions and Chief Procurement Officer. JT has significant international experience and more than 20 years of business development, strategy, procurement, operations, financial, senior sales management and P&L leadership experience at preeminent international consulting and Fortune 500 chemical and coatings companies, most recently at PPG Industries.

Flavio Kliger, Senior VP and President of Lubrizol Additives
Flavio Kliger was appointed as Senior Vice President and President of Lubrizol Additives. Since joining Lubrizol in 2017, he served as Senior Director for the company’s Industry Formulated Fluids & Greases business. Prior to Lubrizol, Flavio spent more than 20 years at The Dow Chemical Company, where his career spanned increasing responsibility in multiple commercial and general management roles in three countries, touching all range of product, from basic chemicals to specialty chemicals, in multiple-end user industries.

Trina Nally, Senior VP and Chief Human Resources Officer
Trina Nally was appointed as Senior Vice President and Chief Human Resources Officer. With 30 years of human resources experience, Trina is a strategic and results-oriented people and culture leader. She has a track record of aligning company strategy, structure, culture, capabilities, and rewards to build high-performing organizations. Most recently she served as Senior Vice President, People & Culture for BP’s Customers & Products business, the company’s largest customer-facing business unit with 27,000 employees across more than 50 countries.

Arnau Pano, Senior VP and President of Lubrizol Advanced Materials
Arnau Pano was appointed as Senior Vice President and President of Lubrizol Advanced Materials (LZAM). Arnau was previously Vice President, Engineered Polymers and LZAM South Asia, where he led the Engineered Polymers division, in addition to overseeing LZAM’s South Asia region. He has been with Lubrizol for more than a decade, following Lubrizol’s acquisition of Merquinsa where Arnau served as CEO. Arnau also spent more than 15 years with General Electric where he held diverse business management positions.

Eduardo Pedreira, VP, Supply Chain
Eduardo Pedreira was appointed Vice President of Supply Chain, leading the team in strategic supply planning, production scheduling, customer service and business partnerships. Eduardo has an accomplished history as a transformational supply chain and operations leader with more than 17 years of experience at PPG Industries. At PPG, Eduardo served as Global Resin Business Director, where he led the PPG vertical integration on the resin portfolio, managing the overall strategy including operations, supply chain, procurement, capital investment and technical development.

LG Tackett, Senior VP, Operations
LG Tackett was named Senior Vice President of Operations, responsible for the safe and efficient operations of the company’s 55 manufacturing facilities in 17 countries around the world. An industry veteran of 30 years, LG’s extensive global leadership is rooted in safety, process safety, operations, reliability, supply chain, and engineering. He was most recently Vice President of Global Operations for PPG Industries Industrial Segment.

Davies Walker, Senior VP and Chief Financial Officer
Davies Walker was appointed Senior Vice President, Chief Financial Officer and Treasurer. With more than 20 years of finance and business management experience, Davies has a proven record of leading multi-billion-dollar global manufacturing businesses to financial growth and profitability. Most recently, he served as Vice President and CFO for Honeywell Process Solutions.

These leaders will be supported by more than 8,000 talented Lubrizol employees serving customers across the world.

© 2023 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.