Month: March 2024

Categories
Minority Stock Positions

A Berkshire Winner: DaVita Rockets to All-Time High!

(BRK.A), (BRK.B)

Berkshire Hathaway, the renowned investment conglomerate led by Warren Buffett, is often celebrated for its strategic investments in household names like Apple, Bank of America, American Express, and Coca-Cola. However, one lesser-known gem in its portfolio is its nearly 40 percent ownership stake in DaVita, a leading global healthcare company specializing in kidney care.

DaVita operates dialysis centers across the United States and in 10 other countries, solidifying its position as a key player in the healthcare industry. As of December 31, 2023, Berkshire Hathaway held a substantial 36,095,570 shares of DaVita, making it one of the company’s top domestic holdings.

The investment has proven highly lucrative for Berkshire Hathaway, with DaVita’s stock surging over 7 percent on March 5, 2024, reaching an all-time high of $134.65 per share. This remarkable performance has been driven in part by DaVita’s aggressive share buyback program, which has effectively increased Berkshire Hathaway’s stake in the company without requiring additional investment.

DaVita’s impressive financial performance further underscores its importance in Berkshire Hathaway’s investment strategy. With a one-year return of 67.89 percent and a five-year return of 169.57 percent, DaVita stands out as one of Berkshire’s top-performing investments.

In discussions about Berkshire Hathaway’s patient and strategic approach to investing, DaVita should not be overlooked. Its success highlights the value of thorough research and long-term investment strategies in achieving substantial returns in the ever-evolving landscape of the stock market.

© 2024 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
Johns Manville

Greg Abel Stepping Down From Kraft Heinz Board

(BRK.A), (BRK.B)

Berkshire Hathaway-backed The Kraft Heinz Company recently made headlines with the announcement of a significant change in its Board of Directors. Greg Abel, Co-Chairman of Berkshire Hathaway, has decided to step down from his position on the Kraft Heinz Board. This move comes without any reported disagreements, as clarified by the company in a recent statement.

Berkshire Hathaway, known for its substantial 26.8% stake in Kraft Heinz, remains closely involved in the company’s affairs. In the upcoming re-election process, two executives from Berkshire Hathaway, Timothy Kenesey and Alicia Knapp, will be considered for continued positions on the board.

© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and Kraft Heinz, 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: Investing for Peace of Mind

(BRK.A), (BRK.B)

Warren Buffett, one of the most renowned investors of our time, has long championed a philosophy of investing that prioritizes not just financial returns, but also peace of mind. His endorsement of index funds, particularly those tracking the S&P 500, stems from this belief, especially for novice investors who may be susceptible to anxiety or outside pressures pushing them towards risky ventures.

In his own words at the 2017 Berkshire Hathaway Annual Meeting, Buffett articulated his criteria for the ideal investment, emphasizing the importance of minimizing worry and external interference. He highlighted the significance of ensuring that investments provide a sense of security and stability, rather than solely focusing on maximizing profits. Buffett even went as far as suggesting index funds as a suitable option for his wife, stressing the paramount importance of her financial tranquility over excessive wealth accumulation.

Buffett’s perspective on investing for peace of mind is underscored by a poignant anecdote involving his elderly aunt, Katie. Despite amassing a substantial fortune due to her association with Berkshire Hathaway, Aunt Katie remained concerned about the possibility of running out of money, seeking reassurance from Buffett himself. His response, delivered with characteristic wit, encapsulates the essence of his investment philosophy: longevity should not be a source of financial anxiety, and prudent investment choices can alleviate such concerns.

Through his advocacy for index funds and emphasis on long-term financial security, Warren Buffett imparts a valuable lesson to investors of all levels: true wealth extends beyond monetary gains to encompass a sense of tranquility and confidence in one’s financial future.

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2024 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

Categories
McLane

McLane Debuts Emerging Brands Program

(BRK.A), (BRK.B)

Berkshire Hathaway-owned McLane Company Inc., a major distributor and trusted partner to retail and restaurant brands across the US, has introduced a game-changing initiative: Emerging Brands. This innovative platform allows convenience store owners to swiftly broaden their product range with new, inventive, and trending brands.

Vito Maurici, McLane’s customer experience officer, emphasized the evolving preferences of today’s consumers, who seek personalized shopping experiences. Emerging Brands caters to this demand with its adaptable model, offering retailers of all sizes a top-notch platform to tap into the growing desire for unique products.

McKinsey & Company research highlights that a significant portion of shoppers actively seek out new brands and products. Emerging Brands responds to this trend by providing retailers access to a diverse array of offerings, including local, new-to-market, small-batch, and values-driven products not typically available through traditional distribution channels. These products span popular categories like alternative snacks, salty and sweet snacks, and packaged sweets and candy.

Moreover, Emerging Brands facilitates rapid product testing with minimal order requirements, streamlined processing, and warehouse-less drop shipping, all seamlessly integrated with McLane’s existing order and payment systems. Powered by technology partner Mable, the digital marketplace offers intuitive browsing features such as location-based searches, dietary preferences, brand values, and category sorting. Customers can also curate their favorites and receive personalized product recommendations based on their preferences.

Arik Keller, founder and CEO of Mable, underscored the partnership’s aim to create a seamless eCommerce platform connecting emerging brands with retailers. The drop ship model, coupled with integration with McLane’s product systems, ensures a hassle-free procurement process akin to ordering from McLane’s warehouse brands.

McLane’s commitment to providing tailored solutions for retail and restaurant clients encompasses everything from ordering and fulfillment to equipment and in-store merchandising. This initiative aims to empower smaller retailers while addressing logistical challenges faced by larger chains, ultimately enhancing the retail landscape with diverse and innovative offerings.

© 2024 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.