Berkshire Hathaway has settled its dispute with the Haslem family over the valuation of the remaining 20 percent share of the Pilot Corporation that the Haslems owned.
On Sunday, Berkshire Hathaway announced that “it has reached an agreement to fully settle the Delaware litigation, including all claims and counterclaims, between Pilot Corporation and Berkshire Hathaway Inc., Pilot Travel Centers LLC, and National Indemnity Company.”
The Haslem family had sued Berkshire contending that its change to pushdown accounting had hurt their valuation in regards to Berkshire’s buyout of the remaining 20 percent stake that the Haslems still owned of the travel center company. Berkshire counter sued contending that the Haslems had illegally engaged in a bribery scheme where top executives received payments in exchange for inflating earnings in a manner that would benefit Haslems on the price Berkshire would ultimately pay to the Haslems.
The matter was due to be fought out in two-day trial this week in Delaware court, but the settlement has ended all litigation. No terms of the settlement have been released.
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.
Effective January 1, 2024, the BNSF Railway Company has assumed control of the route previously served by the Montana Rail Link (MRL), marking a significant development in the railway industry. The decision, initially announced in January 2022, represents a shift in operational responsibility that has been in effect since 1987 when MRL secured a lease on the track from BNSF.
Headquartered in Missoula, Montana, Montana Rail Link is a Class II regional railroad overseeing a vast network of over 900 route miles in Montana and Idaho, boasting a workforce of nearly 1,200 employees.
In a January 2022 memo to MRL employees, President Derek Ollmann first unveiled the transition, detailing BNSF’s assumption of operation and maintenance responsibilities. Notably, Ollmann reassured employees that their positions would be maintained under BNSF’s management.
“BNSF operating the line as part of their network will ensure competitive access to global markets while continuing to provide consistent and reliable service for our customers,” Ollmann emphasized in his communication to the MRL team, highlighting the potential benefits of the change.
Ollmann further noted that a substantial 90% of the volume on the MRL route was attributed to BNSF trains, underscoring the significance of the move for both companies.
In a positive development, the Brotherhood of Locomotive Engineers and Trainmen (BLET) approved a new labor agreement in October 2022. According to MRL, this agreement includes negotiated implementing agreements with MRL’s unions, including BLET, offering enhanced benefits beyond the requirements outlined by the Oregon Short Line for MRL employees transitioning to employment with BNSF.
The strategic move by Berkshire Hathaway’s BNSF Railway Company not only signifies a change in the operational landscape but also reflects a commitment to maintaining a robust and competitive railway network, ultimately benefiting employees and ensuring continued service excellence for customers.
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.
Warren Buffett, regarded as one of the greatest investors of all time, has a straightforward message for aspiring investors: you don’t need to be a genius to succeed in the market. While brilliance may not be a prerequisite, Buffett emphasizes a crucial quality that he believes is integral to investment success — discipline.
In a world where financial markets can be complex and unpredictable, Buffett advocates for a disciplined approach. During the 2018 Berkshire Hathaway Annual Meeting, he expressed, “What we do is not a complicated business. It’s got to be a disciplined business, but it doesn’t require a super IQ, or anything of that sort.”
Buffett’s emphasis on discipline stems from his belief that successful investing is not about making flashy or impulsive decisions. Instead, it’s about adhering to a well-thought-out strategy and staying true to one’s investment principles. Discipline, in Buffett’s view, involves sticking to your investment plan even when faced with market volatility or the temptation to chase short-term gains.
The Oracle of Omaha’s own success is a testament to the power of discipline in investing. Throughout his career, Buffett has maintained a long-term perspective, mostly avoiding the allure of quick profits and instead focusing on businesses with enduring value. His disciplined approach involves thorough research, a patient mindset, and a commitment to the fundamental principles of sound investing.
For investors looking to learn from Buffett’s wisdom, cultivating discipline should be a top priority. It involves not stepping outside your own circle of competance, conducting thorough research, and having the patience to weather market fluctuations. While the financial world may be dynamic, the timeless quality of discipline can guide investors through the highs and lows of the market, and their own emotional highs and lows, helping them make informed and rational decisions.
Regardless of one’s level of intelligence, a disciplined approach can be the key to unlocking long-term success in the world of investing.
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 has recently implemented significant enhancements to its multinational capabilities, marking a strategic move to better meet the evolving needs of its global clientele.
Under the leadership of David Valzania, Head of Multinational at BHSI, the company has expanded its reach by bolstering its partner network, augmenting its internal team of multinational experts, introducing new multinational products, and integrating a cutting-edge technology platform to elevate service standards.
BHSI has grown its partner network extensively, enabling the provision of BHSI-level service in an impressive 178 countries. The internal team of multinational experts has also seen expansion, with dedicated professionals now operating in 13 cities worldwide. Notably, BHSI has diversified its multinational capabilities to now include surety bonds, further enriching its portfolio to address diverse client requirements.
A pivotal advancement in BHSI’s technological landscape is the adoption of WorldLink, a comprehensive digital solution designed for managing and servicing multinational program business. This innovative platform has significantly enhanced workflow efficiency by unlocking bandwidth and ensuring scalability throughout the organization. Remarkably, BHSI now conducts 95% of its multinational business transactions through WorldLink.
Collaborating with London-based insurtech ChainThat, BHSI leveraged the Beyond Multinational Programs platform to conceptualize and develop the WorldLink solution. The distributed ledger-centric nature of ChainThat’s platform contributes to consistency, compliance, and transparency in multinational transactions.
According to David Valzania, this collaboration empowers BHSI to seamlessly coordinate and collaborate across local underwriters, producing offices, and network partners, streamlining the execution of multinational programs.
In essence, these enhancements underscore BHSI’s commitment to delivering best-in-class multinational programs and services. The strategic expansion of its capabilities positions the company at the forefront of the industry, ready to cater to the dynamic and evolving needs of its global customer base and distribution partners.
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.
Cosm, the trailblazing experiential media and immersive technology company, is set to establish its second public entertainment venue at Berkshire Hathaway’s Grandscape in The Colony, Texas.
The announcement comes as part of Cosm’s strategic expansion plans to create a new realm of immersive entertainment known as “shared reality.”
Cosm, founded in 2020 by Mirasol Capital in Dallas, seamlessly blends state-of-the-art technology with physical experiences. The company has strategically acquired businesses in spatial computing, specialty design, engineering, and immersive video production to revolutionize the entertainment landscape.
Under the leadership of CEO Jeb Terry, Cosm has been instrumental in shaping a new category of immersive entertainment. The concept of ‘shared reality’ involves collaborating with global partners to stream live content to physical venues and virtual worlds alike, transcending traditional boundaries.
The decision to establish a venue in North Texas aligns with Cosm’s roots in Dallas and CEO Jeb Terry’s personal connection to the area. The company sees North Texas as a pivotal anchor for its business growth, aiming to contribute to the explosive development in the region.
The venue at Grandscape, one of the largest mixed-use real estate developments in the country, spanning over 400 acres, is poised to become a focal point for immersive experiences. Positioned at the heart of Grandscape’s entertainment area, Cosm’s venue will be strategically located near the popular outdoor stage and lawn.
Grandscape, a Berkshire Hathaway project, is an exceptional outdoor entertainment, dining, and shopping destination in North Texas. Recognized with the 2021 RLI International Award for Most Innovative Entertainment & Retail Project, Grandscape features a unique blend of retail, entertainment, residential spaces, dining options, and attractions.
Cosm’s second venue, designed by Dallas-based architects HKS, promises to be a technological marvel. Equipped with proprietary, best-in-class technology, guests will encounter immersive content across various programming categories, including live sports, entertainment, experiential events, immersive art, and music.
Cosm and TNT Sports are teaming up to bring premium live TNT Sports content to Cosm venues in immersive 8K+ starting in 2024, marking the first time a broadcast rightsholder will present live sports content in Shared Reality. Cosm venues will host a number of premium events throughout the TNT Sports calendar, including select including select NBA on TNT regular season and playoff games (along with TNT’s exclusive coverage of the NBA’s Eastern or Western Conference Finals each year), TNT’s coverage of the Stanley Cup Playoffs, and select U.S. Men’s and Women’s National Soccer Team matches.
Mark A. Williams, FAIA, and Global Director of Venues for HKS express excitement about the partnership, highlighting the evolution in fan experience through fully immersive virtual environments. This aligns with Cosm’s commitment to providing unparalleled content and embedding consumers into events without the need for physical travel.
Earlier this year, Cosm unveiled plans for its first public venue in Los Angeles, California, adjacent to SoFi Stadium and Intuit Dome, marking another significant milestone in the company’s expansion.
The forthcoming Grandscape venue adds another layer to Cosm’s mission, promising a one-of-a-kind immersive experience that merges the virtual and physical realms.
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.