Month: July 2024

Categories
Brooks

Brooks Running Achieves Record Quarterly Revenue in Q2 2024

(BRK.A), (BRK.B)

Brooks Running, a subsidiary of Berkshire Hathaway, has set a new global quarterly revenue record in Q2 2024, marking a 15% year-over-year increase. This growth was driven by robust performance in both wholesale and direct-to-consumer channels.

In North America, Brooks saw a 19% year-over-year revenue increase, fueled by the success of the Glycerin 21 super franchise, Ghost Max, and the launch of Ghost 16. The brand has maintained its No. 1 market share in the adult performance running footwear market at U.S. national retail for the 10th consecutive quarter and held the top spot in the U.S. specialty footwear retail segment through the first half of 2024.

The Europe, Middle East, and Africa (EMEA) region also returned to growth, with a 4% revenue increase as the retail landscape improved. In France and Germany, Brooks’ market share in the adult performance running footwear category grew nearly a full point year over year, with sales up 12% in France and 10% in Germany in Q1 2024 compared to Q1 2023.

In the Asia Pacific and Latin America (APLA) region, Brooks recently opened its first retail store in Shanghai, with a second location planned for later this year, along with new storefronts in Beijing and Guangzhou.

“Brooks’ record results this quarter demonstrate the strength of our brand, business, and product,” said CEO Dan Sheridan. “We believe sharp focus on the performance category creates mass appeal as we continue to deliver innovative, premium products and experiences that runners and active people value.”

Following Sheridan’s appointment as CEO in April, former Vice President, Managing Director of Brooks International Matt Dodge will become President and Chief Operating Officer on August 1. Dodge returns to Seattle after six years of growing Brooks’ business in the EMEA and APLA regions. Josh Vaughan will take over as Managing Director in EMEA, bringing over 15 years of experience in the outdoor performance industry, including roles at icebreaker and Smartwool.

© 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
Lubrizol

Lubrizol to Build Major Manufacturing Facility in Aurangabad, India

(BRK.A), (BRK.B)

Berkshire Hathaway’s The Lubrizol Corporation, a global leader in specialty chemicals, has announced its plan to purchase a 120-acre plot in Aurangabad, India. This new manufacturing facility will initially support the region’s growing transportation and industrial fluid markets. The first phase of this project, representing an investment of around $200 million, marks Lubrizol’s largest investment in India to date and builds on previous commitments in the region.

Upon completion, the Aurangabad plant will become Lubrizol’s second-largest manufacturing facility worldwide and its largest in India. Construction will proceed in phases over the next several years, with provisions for future expansion.

“Lubrizol has made meaningful investments in India for more than five decades,” said Flavio Kliger, President of Lubrizol Additives. “This new state-of-the-art manufacturing facility will enhance our local capacity and capabilities for our Additives business, with potential support for other Lubrizol businesses and regions in the future.”

The announcement of the Aurangabad plant aligns with Lubrizol’s strategy to boost local growth and capacity. In 2023, Lubrizol announced its most significant investment in over 50 years in India, including a $150 million pledge. This investment supports the construction of the world’s largest CPVC resin plant in Vilayat, Gujarat, doubling capacity at the Dahej site, opening a grease lab in Navi Mumbai, and fostering in-country job growth and innovation. Additionally, the company opened its first Global Capability Center in Pune this year to drive regional growth and collaboration.

“Lubrizol understands the importance of a local-for-local approach, from India-based manufacturing to in-region innovation to continued investment in local talent,” said Bhavana Bindra, Managing Director, Lubrizol IMEA. “We look forward to continuing to be partners in progress to our customers and serve as a catalyst for growth and inspired breakthroughs.”

“This announcement underscores our continued commitment to our employees, partners, and customers in the region,” said Nitin Mengi, Vice President Lubrizol Additives IMEA and Chairman & Managing Director, Lubrizol India Private Limited. “The growing transportation and industrial markets in India represent a tremendous opportunity, and Lubrizol is thrilled to be a part of the bright future of these industries.”

In addition to meeting domestic demand, the Aurangabad site will enable export opportunities to surrounding countries and other Lubrizol locations. Manufacturing at the new site is expected to commence in 2028, coinciding with Lubrizol’s 100th anniversary.

© 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
Appointments

BHHC Appoints Marj Hutchings as New CIO

(BRK.A), (BRK.B)

Berkshire Hathaway Homestate Companies (BHHC) Workers Compensation Division has announced Marj Hutchings as their new Chief Information Officer (CIO). With 35 years in technology, including 27 years in the insurance sector, Hutchings is set to lead the IT department’s administration, daily operations, and strategic planning.

“Marj is an exceptional technology leader whose vast experience and innovative mindset will be instrumental in driving our IT initiatives forward,” said Rob Darby, President and CEO of BHHC Workers Compensation. “Her extensive background in modernizing applications, data security, and cloud implementation aligns well with our strategic goals to enhance operational efficiency and deliver superior service and data security to our policyholders and agency partners.”

Before joining BHHC, Hutchings was CIO at State Fund, where she spearheaded a project to replace multiple independent systems with a unified software suite. Her expertise covers property and casualty claims systems, customer-facing web platforms, virtualization of production systems, and private cloud infrastructure implementation. She was also an original team member of Esurance, an Allstate company known for leveraging advanced technology to drive business strategy.

“We are excited to welcome Marj to our leadership team,” added Darby. “Her proven track record in technology management and her ability to lead complex projects make her an excellent fit for BHHC as we continue to innovate and expand our capabilities in the workers compensation insurance sector.”

Hutchings holds a Bachelor of Science in Business Administration/Computer Information Systems from Northern Arizona University and is a Leadership Fellow of the National Association of Corporate Directors (NACD).

BHHC, a group of six insurance carriers part of the Berkshire Hathaway insurance group, is headquartered in Omaha, Nebraska. With over 50 years in business, BHHC has grown from a regional carrier to a national insurance group, writing a diverse range of policies across the United States. The group includes Berkshire Hathaway Homestate Insurance Company, BHHC Special Risks Insurance Company, Continental Divide Insurance Company, Cypress Insurance Company, Oak River Insurance Company, and Redwood Fire and Casualty Insurance 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: Four Key Factors That Made Warren Buffett a Multi-Billionaire

Warren Buffett’s ascent to becoming one of the world’s wealthiest individuals is often attributed to his exceptional investing skills. As of July 2024, Buffett’s fortune stood at over $157 billion, despite having donated more than $55 billion to philanthropic causes.

In a statement released in June 2024, announcing his latest charitable donations of 13,008,758 shares of Berkshire Hathaway “B” stock to five foundations, Buffett reflected on the simple yet powerful factors behind his wealth. He highlighted four key elements: a long runway, sound capital deployment, the American economic tailwind, and the power of compounding.

Long Runway: Buffett’s journey began early when he bought his first stock at age 11—three shares of Cities Service preferred at $38 per share. From that young age, he consistently invested, allowing his investments to grow over the next 83 years.

Sound Capital Deployment: Buffett emphasized not just saving but investing. He ensured that his money was actively working to generate more wealth. His strategy involved investing in stocks and businesses that would yield returns greater than the initial investment.

The American Tailwind: Buffett has frequently noted that the productivity and strength of U.S. businesses provide a favorable environment for prudent investors. The collective success of the U.S. economy has been a significant driver of his wealth.

Compounding: The ability of investments to compound over long periods has been crucial. Compounding adds exponential growth to investments, significantly boosting wealth over time.

While few may reach Buffett’s level of wealth, adopting his principles of early investing, strategic capital deployment, leveraging the strength of the economy, and harnessing the power of compounding can help individuals grow their own wealth effectively.

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 Specialty Insurance

Berkshire Hathaway Specialty Insurance Enters Surety Market in Spain

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance (BHSI) has entered the surety market in Spain and appointed Jesús Barbero to lead the product line as Head of Surety.

“We are excited to lead BHSI’s entry into the European surety market,” said Constanza Gállegos, Country Manager, BHSI in Spain. “By bringing BHSI’s long-view commitment, credit rating and financial strength to the surety market in Spain, we are answering an expressed need of our customers and brokers.”

BHSI will build and provide different surety solutions for a variety of projects and risks in Spain.

Jesús has more than 20 years of experience specializing in surety bonds. Jesús most recently spent 15 years leading surety at another major insurer. He is based in Madrid.

© 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
Jazwares

Jazwares and Sony Bring Cobra Kai to the Roblox Gaming Experience

(BRK.A), (BRK.B)

Berkshire Hathaway’s Jazwares, a leading global toy company and renowned game studio, has partnered with Sony Pictures Consumer Products to launch the official Cobra Kai: Karate Legends gaming experience on Roblox.

Timed to coincide with the season six release of Cobra Kai on Netflix this summer, Cobra Kai: Karate Legends on Roblox allows players to build and level up their own dojo, training to become the best karate sensei. Players can explore a vast open map set in Cobra Kai’s San Fernando Valley, complete missions to recruit characters from the show, learn epic karate moves, and challenge others in tournaments. The game aims to capture the thrilling action and martial arts of the series.

Judd Karofsky, Executive Vice President at Jazwares, expressed excitement about the project, stating, “Jazwares Game Studio has a proven track record of bringing some of the world’s biggest entertainment franchises to life on Roblox, and we’re thrilled Cobra Kai: Karate Legends is joining the ranks. We’re huge Cobra Kai fans and have focused on creating an authentic experience that captures the heart-pounding action of the series.”

Cobra Kai: Karate Legends, developed by Jazwares Game Studio, will also offer players the chance to purchase virtual merchandise to customize their Roblox avatars. For added excitement, the Cobra Kai Johnny Lawrence figure, available for a limited time at Target stores, includes a virtual code for an exclusive in-game item.

Stacey Kerr, SVP of Worldwide Licensing at Sony Pictures Entertainment, remarked, “We’re looking forward to working with Jazwares Game Studio to bring the Cobra Kai universe to a new generation of fans. This collaboration helps us deliver an immersive gaming experience that will excite fans for the upcoming season.”

All six seasons of Cobra Kai are now streaming on Netflix, with the sixth and final season having premiered on July 18.

© 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: Embracing Market Volatility

When stocks experience sharp declines, news outlets often criticize the resulting market volatility. However, Warren Buffett views volatility as a significant advantage for investors.

“Volatility is a huge plus to the real investor,” Buffett remarked at the 1997 Berkshire Hathaway Annual Meeting. He referenced Ben Graham’s concept of “Mr. Market,” where the stock market is likened to an obliging partner who daily offers to buy or sell shares at a fluctuating price. In a private business, such daily buy-sell offers are unheard of, but the stock market provides this unique opportunity.

Buffett explained that this partner, “Mr. Market,” is akin to a “heavy-drinking manic depressive.” The more unpredictable and erratic the market behaves, the greater the chances for investors to profit from mispriced stocks. For those not on margin, volatility is a welcome phenomenon, presenting numerous opportunities for smart investments.

Buffett’s full explanation on volatility

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
NetJets

NetJets Expands Real Estate Footprint with New Facility at Teterboro Airport

(BRK.A), (BRK.B)

NetJets, a global leader in private aviation and a subsidiary of Berkshire Hathaway, is expanding its real estate footprint with over a dozen projects across the United States. Key markets for these new investments include the New York tri-state area and Arizona.

This expansion includes the development of both existing and new facilities, such as NetJets Service Hubs™, to provide Owners with a personalized brand experience and seamless access to their aircraft.

NetJets has long held the largest market share of flight volume in New York. Recognizing the importance of this location, the company plans to renovate and rebrand its primary fixed-base operator (FBO) at Teterboro Airport in New Jersey. In collaboration with Signature Aviation, the enhanced space will be accessible exclusively to NetJets Owners. The new facility will feature a private ramp and hangar space, an Owner lounge, VIP conference rooms, a refreshment station, dedicated parking, and other amenities to ensure smooth arrivals and departures starting in 2025.

This summer, NetJets will also open an exclusive-use Service Hub in Scottsdale, Arizona. This marks the company’s first new-build Service Hub, operated in partnership with Jet Aviation. The Scottsdale hub will offer proactive aircraft maintenance, VIP conference rooms, a private lobby, an outdoor patio with mountain views, vehicular ramp access, and covered parking. Additionally, NetJets plans to break ground on a new facility in Las Vegas this year, set to open in 2027. The two-hangar Las Vegas FBO will include a dedicated terminal, lobby, and parking. Other projects are underway in Eagle, CO; Atlanta, GA; Bedford, MA; Austin, TX; and Dallas, TX.

“We are proud to announce our latest investments to grow our real estate footprint with renovated FBOs and NetJets Service Hubs in key markets,” said Patrick Gallagher, President of Sales, Marketing, and Service at NetJets. “By introducing new Service Hubs in the West, strengthening our partnerships with FBOs, and offering an exclusive facility at Teterboro, we continue to help our Owners reach across the country with ease.”

© 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
Mouser Electronics

Mouser Awarded the Electronics Division Distributor Partnership Award from Eaton

(BRK.A), (BRK.B)

Berkshire Hathaway’s Mouser Electronics, Inc., a leading global distributor of the latest electronic components and industrial automation products, has received the 2023 Electronics Division Distributor Partnership Award for the Americas from Eaton, a prominent global manufacturer of power management solutions. This award recognizes Mouser’s exceptional partnership with Eaton.

“Eaton is proud to present Mouser with our 2023 Partnership Award,” said John Janis, VP and General Manager of the Electronics Division at Eaton. “Mouser has earned this award through their unyielding commitment to collaboration and promoting innovative solutions to our joint customers. With the rapid expansion of Eaton’s product portfolio, we look forward to another successful year with Mouser.”

“We are incredibly honored to receive this prestigious award and thank Eaton for recognizing the outstanding efforts of our team,” said Tom Busher, Mouser Vice President of Supplier Management. “Eaton is an industry leader and a valued business partner. We look forward to our continued mutual success.”

© 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: Don’t Bet on Turnaround Stories

When seeking promising investment opportunities, it’s wise not to rely on once-great companies that have since faltered, advises Warren Buffett. The legendary investor emphasizes that it is extremely rare for a company to regain its competitive edge once it has been lost.

Buffett illustrated this point at the 2003 Berkshire Hathaway Annual Meeting, stating, “In terms of competitive advantage and then regain — lost and then regained — there aren’t many examples of that.” He shared an anecdote about a friend who repeatedly invests in struggling companies with hopes of turning them around. Buffett’s response to such optimism is a simple but pointed question: “Where in the last hundred years have you seen it happen?”

In essence, Buffett’s advice underscores the importance of focusing on companies that currently possess strong competitive advantages, rather than hoping for a turnaround in those that have lost their way.

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.