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Berkshire Hathaway Specialty Insurance

BHSI Comes to Italy, Opens Office in Milan

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance (BHSI) has opened an office in Milan and named Leonardo Castrichino to oversee its business in Italy as Country Manager, along with several additional leadership appointments.

“Since opening our first European offices in 2016, BHSI has been growing thoughtfully and strategically across the region, always with an eye on bringing sustainable, long-term solutions to the marketplace,” said Alessandro Cerase, Head of Europe, BHSI. “We are pleased to now expand into Italy with Leo leading our business, building a team with exceptional talent, and bringing the BHSI brand, balance sheet, and service to the marketplace.”

Leo comes to BHSI with nearly three decades of experience in the European insurance market, where he has held numerous country and regional level leadership positions and amassed deep knowledge across multiple commercial lines and business segments. He was most recently Chief Operating Officer for the Europe, Middle East and Africa Region (EMEA) at another insurer.

© 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.

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Lessons From Warren Buffett

Lessons From Warren Buffett: Can Truly Great Companies Be Overvalued?

Are some companies so outstanding that it’s worth paying any price for them? This question becomes particularly relevant when stock prices reach stratospheric heights.

In his 1997 Chairman’s Letter to Berkshire Hathaway’s shareholders, Warren Buffett highlighted Coca-Cola and Gillette as “The Inevitables.” He described these companies as ones that “will dominate their fields worldwide for an investment lifetime.” However, during that year’s annual meeting, Buffett clarified that even these “Inevitable” companies can be overpriced.

“You can pay too much, at least in the short run, for businesses like that,” Buffett said at the 1997 Berkshire Hathaway Annual Meeting. He emphasized that no matter how wonderful a business is, there’s always a risk of paying a price so high that it takes years for the business to catch up with the stock. Essentially, the stock can outpace the business itself.

Hear Buffett’s full explanation

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© 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.

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Jazwares

Crocs partners With Berkshire’s Squishmallows

(BRK.A), (BRK.B)

Squishmallows fans can now slip into the world’s most iconic 13-hole footwear! Berkshire Hathaway’s Jazwares, one of the world’s leading toy companies, and Crocs, a global leader in innovative casual footwear, are partnering to bring everyone’s favorite ultra-soft plush, Squishmallows, a full line of unique Crocs™ shoes and Jibbitz™ charms. Combining Squishmallows colorful personality with cute and comfy styling, the collection features three vibrant designs available now at your favorite Crocs retailer and online on Crocs.com.

This new collaboration with Crocs is such an exciting way for fans to step into style and show off their love of Squishmallows at the same time. This truly diversifies and elevates our offering for the brand to a new level that will connect with consumers of all ages,” said Gerhard Runken, Executive Vice President of Brand & Marketing, Jazwares.

Matias Infante, Crocs’ Vice President of Global Marketing, added, “This partnership brings together two iconic brands that are passionate about celebrating the spirit of fandom. Like Crocs, Squishmallows has become a beloved staple for those seeking style and comfort. We can’t wait for our fans to experience the ultimate in cozy comfort with this exciting new collection.”

© 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.

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Lubrizol

Lubrizol Expands Production of Solsperse™ Hyperdispersants at Avon Lake Facility

(BRK.A), (BRK.B)

Berkshire Hathaway’s Lubrizol is expanding operations at its Avon Lake, Ohio, facility to double the production capacity of its Solsperse™ Hyperdispersants. These hyperdispersants, essential for pigment dispersant performance in coatings and inks, have been produced at the facility since 2014. This latest investment marks the next phase in Lubrizol’s continued capacity growth at Avon Lake, with plans for further expansion in 2025.

By boosting local production, Lubrizol aims to better serve its North American customers, improve supply chain efficiency, and reduce the carbon footprint associated with long-distance transportation. “Production in North America for North America enables faster response times and reduces transportation needs,” said Luis Carthery, Senior Director of Performance Coatings at Lubrizol.

This expansion underscores Lubrizol’s commitment to supporting the coatings market in North America. Earlier this year, the company announced a $20 million investment to expand capacity at its Gastonia, North Carolina, facility for acrylic emulsion technologies. These strategic investments reflect the company’s dedication to helping customers meet both growth and sustainability targets.

“Our investments solidify our commitment to our customers as partners in progress,” said Marco Fay, Vice President of Performance Coatings at Lubrizol. “We are helping them bring new coating innovations to life, from sustainable dispersants to high-performing additives for industrial coatings.”

© 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.

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Lessons From Warren Buffett

Lessons From Warren Buffett: The Eureka Moments of Great Minds From Archimedes to Buffett

Throughout history, pivotal moments of insight have often emerged in the most unexpected of places. Just as the ancient Greek mathematician Archimedes famously exclaimed “Eureka!” upon his realization in a bath, so too did Warren Buffett find inspiration while soaking in his tub.

In the depths of the Great Recession in 2011, when investing in banks seemed perilous, Buffett made a bold move. His “Eureka moment” led him to invest $5 billion in Bank of America, a decision that raised eyebrows at the time but ultimately proved to be immensely profitable. Over the years, this investment brought Buffett over $22 billion in returns.

Yet, Buffett himself is quick to downplay the significance of the bathtub in his revelation. Speaking at the 2013 Berkshire Hathaway Annual Meeting, he attributed his moment of clarity not to the water around him, but to the vast reservoir of knowledge he had accumulated over decades. He recalled reading “Biography of a Bank” more than 50 years prior, a book chronicling the history of banking and the likes of A.P. Giannini, the founder of Bank of America. This foundational understanding of the industry, cultivated over half a century, laid the groundwork for his inspired investment.

In essence, both Archimedes and Buffett exemplify the power of preparation meeting opportunity. While the setting may differ, the common thread remains: a deep understanding of their respective fields paved the way for their moments of genius. Whether it’s a bathtub or a boardroom, the lesson endures—the path to enlightenment is often paved with knowledge and experience.

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.

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BYD

BYD Launches in Suriname: A Milestone in South American Growth

(BRK.A), (BRK.B)

Berkshire Hathaway-backed BYD has officially expanded into Suriname with the opening of its first dealership in the capital city, Paramaribo. The grand opening, a key step in the company’s South American growth, attracted nearly 300 attendees, including Suriname’s Vice President, Ronnie Brunswijk, and other local political and business leaders.

At the event, BYD introduced four electric vehicle models to the Surinamese market: the DOLPHIN, SEAL, YUAN PLUS, and SONG PLUS. These models offer eco-friendly transportation solutions with driving ranges from 400 to 1,100 kilometers, catering to the country’s growing demand for efficient, sustainable vehicles.

The company recently opened its first showroom in Dubai, inaugurated its Thailand plant in Rayong, and produced its 8 millionth new energy vehicle.

BYD’s new energy vehicles are now available in 88 countries and regions. The company has established passenger car production bases not only in Thailand but also in Brazil, Hungary, and Uzbekistan.

© 2024 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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Berkshire Hathaway Specialty Insurance

BHSI Announces Key Leadership Appointments to Drive Growth in Canada

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance (BHSI) has announced key leadership appointments in Canada as part of its continued growth in the region. Andrew Knight has been named Country Manager, while Amanda Sorsak has been appointed Head of Claims, and Paul Emerson will serve as Head of Customer & Broker Engagement.

Sanjay Godhwani, Head of North America at BHSI, praised the company’s growth in Canada, crediting the brand’s strength and the expertise of its team. “Andrew, Amanda, and Paul have been instrumental in our success, and their new roles will help us further enhance our offerings and relationships with customers and brokers,” he said.

Andrew Knight, who joined BHSI in 2016, will continue to lead the Executive & Professional Lines division while also overseeing BHSI’s expansion into new markets and product lines across Canada. Based in Toronto, Knight brings over 20 years of industry experience to his expanded role.

© 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.

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Lessons From Warren Buffett

Lessons From Warren Buffett: Key Lessons from “The Intelligent Investor”

If you’re searching for a book to guide you to financial success, Warren Buffett recommends Benjamin Graham’s “The Intelligent Investor” as the essential read.

At the 2012 Berkshire Hathaway Annual Meeting, Buffett highlighted two chapters as particularly crucial: “Chapters 8 and 20 are really all you need to do to get rich in this world.”

In Chapter 8, Graham introduces the concept of “Mr. Market,” a metaphor for the stock market’s volatility. Buffett explained, “In the market, you’re going to have a partner named ‘Mr. Market,’ and the beauty of him as your partner is that he’s kind of a psychotic drunk. He will do very weird things over time, and your job is to remember that he’s there to serve you, not to advise you.”

Buffett emphasized the importance of maintaining a rational perspective: “If you can keep that mental state, then all those thousands of prices that Mr. Market is offering you every day on every major business in the world, practically, he is making lots of mistakes. He makes them for all kinds of weird reasons. All you have to do is occasionally oblige him when he offers to either buy or sell from you at the same price on any given day, any given security.”

By understanding and applying these principles, investors can leverage market fluctuations to their advantage and achieve financial success.

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.

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Berkshire Hathaway Energy

BHE Renewables and Powin Partner on Landmark Solar Microgrid in West Virginia

(BRK.A), (BRK.B)

Berkshire Hathaway’s BHE Renewables has partnered with Powin, a global energy storage leader, to develop one of the largest solar and storage microgrids in Ravenswood, West Virginia. This innovative project will supply renewable energy to Titanium Metals Corporation (TIMET), a Berkshire subsidiary, to support titanium production for the aerospace industry.

Powin will provide a 50 MW Centipede™ Stack800 battery system as part of the microgrid, which also includes a 106 MW solar array. The battery system can discharge energy continuously for 10 to 12 hours, highlighting the capability of lithium-ion phosphate batteries for long-duration use. This is one of Powin’s first projects that align with domestic content requirements under the Inflation Reduction Act, supporting U.S. economic growth.

The microgrid project will be completed in phases, with initial deliveries in 2025 and full capacity by 2027. This is the second collaboration between Powin and BHE Renewables, further advancing renewable energy solutions and economic revitalization in the U.S.

© 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.

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Berkshire Hathaway Energy

Biden Administration Greenlights NV Energy’s Major Transmission Project

(BRK.A), (BRK.B)

The Biden administration has approved Berkshire Hathaway’s subsidiary, NV Energy, to move forward with the Greenlink West project, a major transmission initiative aimed at boosting Nevada’s energy infrastructure. This project is part of a broader plan to enhance energy reliability, support renewable energy development, and promote economic growth across the state.

Greenlink West, a 525 kV line, will span approximately 350 miles from Las Vegas to Yerington, with construction slated to begin in early 2025. It is expected to be operational by May 2027.

Another part of the initiative, which is still in the permitting stage, Greenlink North, will stretch 235 miles from Ely to Yerington and is set to be completed by December 2028. Additionally, three 345 kV lines will connect Yerington to the Reno area.

The Greenlink project will significantly improve energy reliability by allowing NV Energy to efficiently transport electricity across the state. This expanded infrastructure will help Nevada meet growing energy demands driven by its rapid population and business growth.

Greenlink will also unlock access to over 4,000 megawatts of untapped renewable energy resources, enabling Nevada to expand its renewable energy portfolio and meet its decarbonization goals. Economically, the project is expected to generate $690 million in economic activity and create nearly 4,000 jobs, many of which will be unionized and located in rural areas.

© 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.