Month: June 2023

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Lessons From Warren Buffett

Lessons From Warren Buffett: Make the Best Deal You Can Make Now

Warren Buffett, known for his baseball analogies, compares investing to a batter waiting for the right pitch. Unlike the batter, investors face no called strikes and can patiently seek the perfect opportunity. However, it’s important not to let the pursuit of perfection hinder the recognition of good investments. While aiming for home runs, one must also appreciate the value of solid opportunities. Striking a balance between waiting for ideal prospects and seizing worthwhile investments is the key to long-term success.

“One of the things, one of the errors people make in business, and sometimes it can be a huge error, is that they try and measure every deal against the best deal they’ve ever made,” Buffet said 2011 Berkshire Hathaway Annual Meeting. “The goal is not to make a better deal than you’ve ever made before. The goal is to make a satisfactory deal that’s the best deal you can make at the time.”

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.

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BYD

BYD Posts New Monthly Sales Record

(BRK.A), (BRK.B)

BYD, the Chinese automobile manufacturer backed by Berkshire Hathaway, continues to shatter sales records with its remarkable performance in the market. The company achieved a significant milestone in May, surpassing its previous sales record of 235,197 units, which was accomplished in December 2022. The figures speak volumes about BYD’s unwavering success in the competitive automotive industry.

During the month of May alone, BYD sold an impressive total of 240,220 new energy vehicles (NEVs), exhibiting a remarkable growth rate of 108% compared to May 2022. This tremendous surge in sales reflects the increasing demand for BYD’s innovative and eco-friendly vehicles, which have captured the attention of consumers worldwide.

Furthermore, the year-to-date sales for BYD have reached an impressive figure of 507,314 units, marking a staggering 97% increase over the first five months of 2022. This remarkable growth signifies the company’s ability to consistently deliver high-quality vehicles that cater to the evolving needs and preferences of the modern consumer.

© 2023 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.

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NetJets

NetJets Opens New Maintence facility in Paris

(BRK.A), (BRK.B)

Berkshire Hathaway’s NetJets, the world’s largest private jet operator, has recently unveiled its state-of-the-art Maintenance Service Hub at Paris Airport-Le Bourget. This new facility aims to provide round-the-clock maintenance services for all NetJets aircraft operating in Europe, catering to the growing demand in the region.

In collaboration with JetSupport, the Le Bourget Maintenance Service Hub offers a comprehensive 24/7/365 MRO (maintenance, repairs, and operations) service. With this strategic expansion, NetJets seeks to ensure the smooth functioning of its impressive annual tally of 450,000 global flights. In addition to the new Paris hub, NetJets also operates a maintenance hub at London Luton Airport.

Spanning an area of 4,014 square meters, the Le Bourget service hub hangar boasts an additional 11,329 square meters of ramp space. This extensive facility can comfortably accommodate NetJets’ largest aircraft models, such as the Bombardier Global 6000 and Bombardier Challenger 650. By providing ample capacity, the company aims to maximize aircraft availability and minimize downtime.

Christian Luwisch, the executive director of NetJets Europe, expressed his delight in officially inaugurating the Maintenance Service Hub at Le Bourget. With NetJets’ continued fleet expansion in Europe, Luwisch emphasized the importance of scaling up operational capabilities to ensure uninterrupted service for aircraft owners. Safety remains the company’s utmost priority, and the strategic locations of both Le Bourget and Luton hubs play a crucial role in delivering seamless and proactive servicing.

NetJets’ new Maintenance Service Hub at Paris Airport-Le Bourget is a testament to the company’s commitment to excellence in aircraft maintenance and customer satisfaction. By establishing this 24-hour facility, NetJets reinforces its position as a leader in the private aviation industry, providing reliable and efficient services to its discerning clientele.

© 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
Lessons From Warren Buffett

Lessons From Warren Buffett: Start From a Good Base

Warren Buffett is renowned for his brilliant investment decisions, but even he admits that some of his early ones were not so great. In particular, he acknowledges that his initial purchase of Berkshire Hathaway was a costly mistake, resulting in a missed opportunity worth $200 billion. Although the company was ailing in the textile industry, he thought it was a cheap opportunity to acquire assets below their book value. However, he later realized that the money required to keep it afloat would have been better spent on acquiring a high-quality business instead.

“Start from a good base,” Buffett said at the 2000 Berkshire Hathaway annual meeting. “Don’t follow our example in that respect. Start out with a good business and then keep adding on good businesses.”

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.

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Announcements

Berkshire Hathaway Has Another $200 Million to Put To Work After Seritage Prepayment

(BRK.A), (BRK.B)

Berkshire Hathaway has another $200 million that it needs to invest.

Seritage Growth Properties, a national owner and developer of retail, residential and mixed-use properties, announced that on May 25, 2023, the company made a voluntary prepayment of $200 million toward its $1.6 billion term loan facility provided by Berkshire Hathaway Life Insurance Company of Company of Nebraska.

With the prepayment, $600 million of the term loan facility remains outstanding.

The prepayment will also reduce the amount of interest Berkshire receives from Seritage’s total annual interest expense by approximately $14 million.

© 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.