Month: May 2024

Categories
Jazwares

Jazwares Announces Master Licensing Agreement With Paramount Global for Avatar: The Last Airbender

(BRK.A), (BRK.B)

Berkshire Hathaway’s Jazwares, known for the popular Squishmallows, has partnered with Paramount Global, a leading media and entertainment company, to release a new line of toys, costumes, and accessories based on some of Paramount’s most iconic franchises.

Under this multi-contract agreement, Jazwares will gain global master rights to produce a wide array of products, including figures, toy vehicles, dolls, plush items, and playsets for Nickelodeon’s Avatar: The Last Airbender.

Additionally, Jazwares will hold the North American rights to create costumes and accessories for not only Avatar but also other popular Paramount properties such as Dora, SpongeBob SquarePants, Star Trek, and Yellowstone.

The new product lines are expected to hit retail shelves in 2025.

“Joining forces with Paramount combines the world’s most beloved entertainment franchises with Jazwares’ unparalleled ability to authentically translate IP across toys and costumes like nobody else in the industry,” said Judd Karofsky, Executive Vice President of Jazwares. “This is an amazing collaboration for Jazwares – to expand our portfolio with some of pop culture’s most iconic stories and characters into products we know fans are going to love.”

Lourdes Arocho, Senior Vice President of Consumer Products & Experiences at Paramount, added, “Jazwares has a proven track record of taking culture-defining brands like Avatar: The Last Airbender and other Paramount franchises and creating outstanding products for consumers to connect with. We are eager to get these product lines of toys and costumes into the hands of fans everywhere.”

© 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
Minority Stock Positions

Berkshire Hathaway-Backed Nubank Surpasses 100 Million Customers, Celebrates Record Growth

(BRK.A), (BRK.B)

Berkshire Hathaway-backed Nubank has reached a significant milestone, surpassing 100 million customers following a record-breaking first quarter in 2024. David Vélez, the founder and CEO, celebrated this achievement at the company’s headquarters in São Paulo, Brazil, on May 15.

Reflecting on the journey, Vélez remarked, “Seven years ago, the goal of 100 million customers seemed unattainable. Even one million or ten million seemed impossible. But here we are.”

Vélez attributed this success to Nubank’s commitment to addressing customer needs with innovative products and top-quality service. The company’s first-quarter results for 2024 showcased a revenue increase to $2.7 billion and a net income rise to $379 million, along with a 23% return on equity for Nu Holdings. Despite being over-capitalized and still in the early stages of profitability in Mexico and Colombia, these new markets are growing faster in customers, deposits, revenue, and credit card market share compared to Brazil at a similar stage.

Throughout the celebration, Vélez emphasized Nubank’s customer-centric culture. “By doing what is best for our customers, we are winning them over for decades. We focus on long-term value creation, not short-term gains. It’s an infinite game. Our strategy and culture evolve with our growing customer base,” he stated.

As of March 31, 2024, Berkshire Hathaway owned 107,118,784 shares of Nu Holdings, representing a 2.32 percent ownership stake in the company.

© 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
Lessons From Warren Buffett

Lessons From Warren Buffett: It’s the Future That Counts

In the world of stock market analysis, the Price-to-Earnings (P/E) ratio holds significant sway. It’s a metric many investors use to gauge the attractiveness of a stock, dividing its share price by its earnings. However, legendary investor Warren Buffett offers a different perspective that transcends mere numerical ratios based on the past.

Buffett’s wisdom, shared during the 1995 Berkshire Hathaway Annual Meeting, emphasizes the importance of looking beyond present earnings. Drawing an analogy from hockey, he recalls the words of Wayne Gretzky, the iconic sports figure: “Go where the puck is going to be, not where it is.”

For Buffett, the crux of successful investing lies in anticipating the future trajectory of a business. He articulates a long-term vision, emphasizing the pursuit of companies poised for substantial growth over the next decade. Buffett isn’t fixated solely on current earnings; instead, he prioritizes businesses with promising prospects for sustained profitability and value creation.

“We want to be in the business that 10 years from now is earning a whole lot more money than it is now,” Buffett asserts, encapsulating his investment philosophy. He underscores the importance of investing in enterprises with enduring potential, ones that will continue to thrive and generate substantial returns well into the future.

Buffett’s approach challenges the conventional fixation on short-term metrics like P/E ratios. While these metrics offer valuable insights into a company’s current performance, they often fail to capture its long-term growth trajectory. By focusing on the future earnings potential and the durability of a business model, Buffett advocates for a more nuanced and forward-thinking approach to investing.

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 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
Jazwares

Jazwares to Launch Five Nights at Freddy’s Toys in 2025

(BRK.A), (BRK.B)

Berkshire Hathaway’s Jazwares, known for the popular Squishmallows, has entered into a multiyear global toy licensing agreement with Scottgames, LLC to create a toy line inspired by the Five Nights at Freddy’s survival horror video game & film franchise. This new collection will bring the game’s immersive settings and characters to life through a diverse range of toys, set to launch at mass retail in 2025.

The product line will include character figures of various scales, detailed playsets, plush toys, pet toys, unique collector’s items, and more, allowing fans to engage with the franchise in new and exciting ways. Judd Karofsky, Executive Vice President of Jazwares, expressed excitement about connecting with fans and expanding the Five Nights at Freddy’s universe beyond the screen.

Russell Binder, CEO of Striker Entertainment, highlighted the franchise’s growth into a top media brand over the past decade, attributing its success to a strong fanbase and the steady release of new content. Binder believes Jazwares, being fans themselves, will deliver high-quality, innovative products that will resonate with both new and existing fans.

© 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
Berkadia

Berkadia Facilitates Sale of Killeen-Corpus Christi Portfolio

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has announced the sale of the Killeen-Corpus Christi Portfolio, a 544-site manufactured housing portfolio in Killeen, Corpus Christi, and Huntsville, Texas markets.

Managing Director Ian Hilpl, Senior Managing Director Kevan Enger, and Directors Brian Hummell and Hunter LaRocca of Berkadia Manufactured Housing led the transaction on behalf of the seller.

The Kileen-Corpus Christi Portfolio consists of four manufactured housing communities in Central and East Texas consisting of the following properties:

• Gateway MHC is a 259-site community located at 1545 N Lexington Blvd, Corpus Christi, Texas.
• Clear Creek is a 126-site community located at 6000 S Clear Creek Road, Killeen, Texas.
• Cimarron Park Estates is a 98-site community located at 1400 E Ave H 74B, Nolanville, Texas.
• Hidden Valley is a 61-site community located at 3307 Powell Road, Huntsville, Texas.

“The portfolio was an attractive acquisition for the buyer as Texas is a primary target market and this offered them immediate scale across multiple well performing MSA’s,” said Hilpl, the lead broker on the sale. “The portfolio offered multiple value-add opportunities to increase performance across the four communities.”

© 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
Lessons From Warren Buffett

Lessons From Warren Buffett: Understanding Price/Earnings Ratios

Warren Buffett provides valuable insights into the dynamics behind Price/Earnings (P/E) ratios. At the 1998 Berkshire Hathaway Annual Meeting, he delved into the two factors driving the movement of these ratios.

According to Buffett, rising P/E ratios can be attributed to two primary factors. Firstly, relative P/E ratios increase when investors anticipate improved prospects for either the industry or the specific company compared to other investment options. This shift reflects a change in perception regarding future performance relative to past assessments. However, Buffett cautions that whether this optimism is justified remains to be seen.

Secondly, absolute P/E ratios rise concerning the earning power, or prospective earning power, as perceived by investors. This aspect is closely tied to expectations of future returns on equity. Additionally, changes in interest rates play a significant role in influencing absolute P/E ratios. As interest rates fluctuate, they impact the attractiveness of equities relative to alternative investments, thus influencing investors’ valuation metrics.

Buffett’s comments underscores the nuanced interplay of market perceptions, future expectations, and external economic factors in shaping P/E ratios. Investors must discern between justified optimism and speculative fervor when interpreting movements in these ratios. Moreover, an understanding of the underlying factors driving P/E fluctuations is essential for making informed investment decisions.

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 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 Announces Financing of Vanguard Landing in Virginia Beach

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, completed the financing of Vanguard Landing, a 128-bedroom community to be developed in Virginia Beach, Virginia. Senior Managing Director John Reed of Berkadia Richmond and Managing Director John Richards of Berkadia Norfolk secured $31.85 million in construction/permanent financing through Virginia Housing Development Authority on behalf of the non-profit developer, Virginia Beach-based Vanguard Landing, Inc. The deal closed on April 29.

The 40-year loan featured a 6.25 percent permanent interest rate and a 40-year amortization schedule.

“This is a ‘first of its kind’ development in the Commonwealth of Virginia and thus the first property financed by Virginia Housing,” said Reed. “This fact alone presented some challenges for all parties involved throughout a very lengthy process. The fact that we were able to get this done testifies to the worthiness of this project, in addition to the perseverance of the Berkadia, Vanguard Landing, and Virginia Housing teams.

“At the end of the day, this development allowed Virginia Housing to fulfill one of its missions to provide housing for individuals with intellectual and developmental differences and will be the first of its kind in Virginia, and we are proud to present this opportunity to them,” said Richards. “We look forward to the Vanguard team getting the project built and completed and perhaps working with them on additional like-communities elsewhere in Virginia.”

© 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
Berkshire Hathaway Specialty Insurance

Amy Bowman Promoted to Head of Multinational at Berkshire Hathaway Specialty Insurance

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance (BHSI) has announced the promotion of Amy Bowman to the position of Head of Multinational. Bowman, previously serving as Vice President of Multinational, brings over two decades of experience as an attorney and insurance leader to her new role.

In her previous roles at BHSI, Bowman demonstrated her capabilities in various capacities. Joining the company in 2014 as Counsel for Executive & Professional, Healthcare, and Small Commercial Business, she quickly rose through the ranks. Bowman later assumed the role of Assistant Vice President of Transactional Liability, where she spearheaded the establishment and growth of BHSI’s Transactional Liability business in the U.S.

Her journey within BHSI continued as she took on increasingly strategic roles. As Assistant Vice President and subsequently Vice President of Multinational, Bowman played a central role in developing and expanding BHSI’s multinational network and capabilities. Her efforts have contributed significantly to BHSI’s presence in 178 countries worldwide.

Hilary Browne, Deputy Global Chief Underwriting Officer at BHSI, emphasized Bowman’s instrumental role in building a robust global network aligned with BHSI’s commitment to excellence. Browne stated, “Amy played a pivotal role in building our strong global network with likeminded partners who share our commitment to excellence. She is the perfect individual to lead our multinational business, and our multinational team, to the next level.”

Bowman’s promotion underscores BHSI’s commitment to nurturing talent from within its ranks and recognizing individuals who demonstrate exceptional leadership and industry expertise. Her extensive experience and track record of success position her well to lead BHSI’s multinational business into the future.

Bowman remains based in Boston, reflecting BHSI’s global reach and decentralized operational model. Her leadership will undoubtedly continue to drive growth and innovation within BHSI’s multinational division, further solidifying its position as a leading provider of insurance solutions on the global stage.

© 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
Lessons From Warren Buffett

Lessons From Warren Buffett: Time Is a Powerful Force in Investing

In the world of investing, time isn’t just a measure of duration—it’s a powerful force that can shape the outcome of your investments. This concept is succinctly captured by Warren Buffett, the legendary investor, who views time as both a friend and a foe in the realm of business.

Buffett famously remarked at the 1998 Berkshire Hathaway Annual Meeting that “Time is the enemy of the poor business, and it’s the friend of the great business.” This statement encapsulates the essence of how time interacts with investments and businesses.

For investors, the passage of time directly impacts the rate of return on their investments. The longer an investment is held, the more opportunity there is for it to grow and compound. Time can magnify the gains of a well-performing investment, but it can also erode the returns of a poorly performing one. In this sense, time becomes a critical factor in the decision-making process for investors, influencing their strategies and choices.

Moreover, Buffett’s insight extends beyond the realm of investing to the businesses themselves. He emphasizes the importance of sustained profitability over time. Businesses that consistently generate high returns on equity are positioned to benefit from the passage of time—they become stronger and more valuable as they continue to deliver strong performance. On the other hand, businesses with low returns on equity face the risk of stagnation or decline over time. Time becomes their enemy, exposing weaknesses and hindering growth potential.

Buffett’s philosophy underscores the long-term perspective inherent in successful investing. He advocates for selecting investments with the intention of holding them for extended periods, allowing time to work its magic in unlocking their full potential. By focusing on businesses with solid fundamentals and strong track records, investors can harness the power of time to their advantage.

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 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 Energy

WEIM Generates Millions in Benefits for Berkshire’s Utilities Amidst Winter Challenges

(BRK.A), (BRK.B)

The Western Energy Imbalance Market (WEIM), which includes two Berkshire Hathaway utilities, continues to prove its worth, with cumulative benefits reaching an impressive $5.49 billion in the first quarter of 2024. Notably, its role in ensuring regional coordination became evident during a January cold snap that tested the Northwest’s grid reliability.

With 22 participants onboard, the WEIM yielded $436 million in benefits during this quarter alone, providing substantial relief on expenses for utilities and their customers. NV Energy and PacifiCorp, both subsidiaries of Berkshire Hathaway Energy, reaped significant rewards. NV Energy accrued $32.77 million, while PacifiCorp secured $73.83 million, further underlining the tangible advantages of active participation in the WEIM.

Its ability to efficiently transfer power across a vast and diverse landscape played a crucial role in meeting the heightened demand during the extreme cold spell from January 13-15, particularly in the Pacific Northwest. During this period, energy transfers from California and the Southwest proved invaluable, offering much-needed support to areas under strain due to increased electricity demand.

Established in 2014, the WEIM operates as a real-time electricity market, facilitating the buying and selling of power close to the time of generation and consumption. Powered by cutting-edge technology, the market excels in identifying and delivering the lowest-cost resources to meet immediate power needs while effectively managing congestion on transmission lines to uphold grid reliability.

© 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 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.