Berkshire Hathaway’s Aviation businesses, NetJets and FlightSafety, have taken off. In the first quarter of 2023, their revenues saw an impressive 18.8 percent year-over-year growth. This is a testament to the strong performance and demand for these aviation services.
Berkshire Hathaway’s overall operating earnings for Q1 2023 hit a remarkable $8.065 billion. This is a significant increase from the first quarter of 2022, which recorded earnings of $7.160 billion.
“The revenue increase was primarily due to increases in the number of aircraft in shared aircraft ownership programs and in flight hours across NetJets’ various programs, as well as higher average rates,” the company stated in its Form 10-Q.
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.
In the aftermath of the Covid-19 pandemic, Berkshire Hathaway’s Dairy Queen is once again on the lookout for opportunities to expand its international reach.
Troy Bader, Dairy Queen’s President & CEO, is bullish on China’s prospects, citing it as the strongest international market for the popular fast-food chain, where it has over 1,200 locations. Additionally, he notes that the existing supply chain has Dairy Queen well-positioned to open its first locations in Hong Kong, making it a top priority for the company.
While China remains at the forefront of Dairy Queen’s expansion plans, the chain is also exploring opportunities in other regions. Bader points to Europe, India, and Australia as markets that are on the company’s radar. With a presence in 20 countries, Dairy Queen boasts over 7,000 restaurants globally, and its total sales for 2022 were an impressive $5.7 billion.
Founded in 1940, Dairy Queen got its start in Joliet, Illinois. Over the years, the chain has evolved to become a beloved American institution, famous for its soft-serve ice cream and tasty burgers. In 1998, Berkshire Hathaway acquired Dairy Queen, bringing the iconic brand under the wing of the legendary Warren Buffett’s conglomerate.
Looking ahead, Dairy Queen is poised to continue its growth trajectory as it expands its international footprint. With a strong supply chain in place and a proven track record of success, the chain is well-positioned to capture new markets and delight customers around the world with its signature menu items. For fans of Dairy Queen, this means that they can look forward to enjoying their favorite treats in more places than ever before.
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.
Rumors have been circulating that Berkshire Hathaway, the conglomerate headed by legendary investor Warren Buffett, is seeking to take over Occidental Petroleum. However, Buffett himself has dismissed these speculations, stating that his company is not looking to buy control of the oil producer.
At this year’s Berkshire annual meeting, Buffett made it clear that the rumors were unfounded. “There’s speculation about us buying control, we’re not going to buy control,” he said. “We wouldn’t know what to do with it.”
Despite this, Berkshire Hathaway has already purchased a significant stake in Occidental, after receiving regulatory approval to buy as much as 50% of the company. While Buffett has ruled out seeking control of the company, he has hinted that his company may add to their current 23.5% stake in the future.
In addition, Berkshire holds warrants that are exercisable for 83.9 million common shares for $5 billion. These warrants give the company the option to purchase more shares at a later date, potentially increasing their stake in Occidental even further.
“We may or may not own more in the future but we certainly have warrants on what we got on the original deal on a very substantial amount of stock around $59 a share, and warrants last a long time, and I’m glad we have them,” Buffett explained.
It’s worth noting that Buffett has a history of making strategic investments in companies without necessarily seeking control. His approach is to invest in strong companies with a long-term outlook, and then let their management teams run the business.
This seems to be the case with Occidental Petroleum. While Berkshire Hathaway has a significant stake in the company, they are not looking to take over or interfere with the management team’s decisions. Instead, they are content to hold on to their shares and potentially increase their stake in the future.
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, the multinational conglomerate headed by the legendary investor Warren Buffett, has continued its trend of buying back its own stock in the first quarter of 2023. The company committed $4.4 billion to the repurchase of shares of both Class A and Class B common stock. This represents an increase from the $2.6 billion that was spent on stock buybacks in the fourth quarter of 2022.
This move by Berkshire is a continuation of the company’s buyback program that started in 2011. In 2022, Berkshire Hathaway bought back a total of $7.9 billion of its stock. The recent purchase of $4.4 billion shows the company’s continued confidence in its own business prospects.
Warren Buffett has long been a proponent of share buybacks, and he defended Berkshire’s buybacks in his recent Chairman’s Letter. He wrote, “The math isn’t complicated: When the share count goes down, your interest in our many businesses goes up. Every small bit helps if repurchases are made at value-accretive prices.”
Buffett has also been critical of those who oppose share buybacks. He has referred to them as “economic illiterates” or “silver-tongued demagogues” who do not understand the benefits of the practice. He believes that buybacks can be a useful tool in returning value to shareholders and that they should be conducted when the company’s shares are undervalued.
Berkshire Hathaway’s commitment to share buybacks reflects its confidence in its own business prospects and its belief that the company’s shares are undervalued. For investors, this move may signal a positive outlook for Berkshire Hathaway’s future performance.
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’s Brooks Running is continuing its success from 2022 into the first quarter of 2023 with an impressive 20% year-over-year global revenue growth, highlighted by a record 32% increase in the Europe, Middle East, and Africa (EMEA) region.
Despite pandemic-related supply chain and inventory issues, Brooks overcame these challenges and brought innovation to the market through new products and experiences. The brand demand was strong across all retail channels. Brooks maintained its position as the top brand at U.S. retail in adult performance running footwear, with a market share of 23%. The Ghost and Adrenaline GTS were the two franchise lines that had the highest sales, with a combined share of over 13% in adult performance run.
Brooks also showed strong momentum in the U.S. specialty run channel, with a year-over-year revenue increase of 42% in the first quarter. The direct e-commerce sales for Brooks grew by an impressive 33% year over year in Q1.
Jim Weber, the CEO, expressed optimism about the future of the premium running category, even in the face of global consumer market uncertainty. “Every runner and walker deserves performance product,” Weber said. “With participation rates healthy and the demand for quality, premium product as strong as ever, Brooks is executing uniquely and earning the trust of retailers and runners.”
Overall, Brooks Running is continuing to thrive in the performance running industry, with strong brand demand, innovative products, and a loyal customer base.
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 Specialty Insurance (BHSI) has announced two key appointments to its leadership team. Alessandro Cerase has been appointed as President & Head of Europe Region, while Neeraj Yadvendu has been named Head of Middle East.
Alessandro joined BHSI in 2018 as Senior Executive Officer for BHSI Middle East and has more than 25 years of experience in the global insurance industry. He led the launch of BHSI’s business in the region and was subsequently named Global Property Underwriter Officer for Construction & Energy in 2020. Alessandro will continue to be based in Dubai and report to Peter Eastwood, BHSI’s President and CEO.
Neeraj, who has over 26 years of global insurance industry experience, joined BHSI in 2018 as Deputy Senior Executive Officer and Head of Third Party Lines in the Middle East. He has been instrumental in BHSI’s growth in the region and will now also take on the role of Senior Executive Officer of the Dubai International Financial Centre Branch, subject to regulatory approval. Neeraj will continue to be based in Dubai and report to Marc Breuil, Head of Asia Middle East, BHSI.
BHSI has been steadily expanding its operations around the world and has experienced accelerated growth in its Europe and Middle East regions. The company’s President and CEO, Peter Eastwood, expressed confidence in the new appointments, saying, “We are excited to have Alessandro and Neeraj in these key leadership roles as we continue to strategically expand our presence in these important regions.”
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-backed BYD has announced its partnership with Keolis in North America for the proposed Los Angeles SkyRail Express (LASRE).
Keolis is a global leader in the shared mobility market, with over a century of experience in enhancing the transit experience for passengers.
LASRE was awarded a Predevelopment (PDA) by the Los Angeles County Metropolitan Transportation Authority (Metro) for the Sepulveda Transit Corridor (STC) Project. Under the PDA, LASRE is working collaboratively with Metro to provide the most modern high-capacity SkyRail solution to ease congestion on the I-405 corridor between Los Angeles’ San Fernando Valley and the Westside in the shortest timeframe possible.
SkyRail is an advanced, driverless, straddle-type transit system representing state-of-the-art technology that has evolved over nearly 60 years.
SkyRail is a growing transit option across the globe, including São Paulo, Bangkok, Cairo, Tokyo and Chongqing. In total, SkyRail covers 269 miles, with over 400 stations, and carries millions of passengers each day.
SkyRail is far lighter, less costly, faster, and easier to construct than comparable elevated structures required by traditional rail vehicles, increasing mobility options for a more sustainable future.
The advantages of SkyRail operating in the I-405 median include minimizing disruption to communities and making it a visible option that encourages taking public transportation. LASRE aims to deliver this project with the fastest construction time possible, compared to any other traditional rail technologies.
SkyRail would be configured for a potential peak line capacity of up to 22,000 passengers per hour per direction with a 2-minute headway.
SkyRail is a compelling alternative for the Sepulveda Corridor, providing a much-needed alternative to the heavily-traveled Sepulveda Pass, where over 400,000 people travel each weekday between the LA Basin and the San Fernando Valley through the 405 freeway and Sepulveda Blvd to get across the Santa Monica Mountains. SkyRail would link thousands of people who live, work, and play in the San Fernando Valley at four future stations: Ventura Blvd, Metro G Line, Sherman Way, and the Van Nuys Metrolink Station.
SkyRail alternatives would also provide a new transit connection from the main alignment to UCLA via electric bus, elevated SkyShuttle (APM), or an underground monorail within the main route.
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.