Month: November 2024

Categories
Lessons From Warren Buffett

Lessons From Warren Buffett: When It Comes to Banks, Strong Management Matters

When it comes to investing in the banking sector, it’s important to recognize that not all banks should be treated the same. Warren Buffett, the renowned investor, has often highlighted this point. He emphasizes the idea that while there are many banks, not all are led by strong management.

Buffett explained that many banks have been poorly managed, leading to their downfall. However, this mismanagement can also create investment opportunities for those who are more discerning. Investors should, therefore, carefully evaluate the leadership and management of banks before making investment decisions.

“We’ve also seen all kinds of banks ruined. I think it was, what was the fellow? M.A. Schapiro, who came up with the statement, he said, ‘There are more banks than bankers,’” Warren Buffett said at the 2002 Berkshire Hathaway Annual Meeting, quoting investment banker Morris Schapiro. “And if you think about that a bit, you’ll see what I mean. There have been a lot of people that have run banks in a very injudicious manner, but that’s made for opportunities for other people.”

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
BYD

BYD and Azerbaijan Partner to Build eBus Manufacturing Plant

(BRK.A), (BRK.B)

At COP29, BYD, backed by Berkshire Hathaway, and the Government of Azerbaijan signed a landmark Project Implementation Agreement to establish an electric bus manufacturing facility in the Sumgait Industrial Park. This initiative aims to boost local production capabilities while advancing sustainable transportation in the region. The collaboration underscores a shared commitment to green innovation and economic growth.

BYD’s bus manufacturing plants span the globe, with facilities in Lancaster, California; Newmarket, Ontario; Komárom, Hungary; Beauvais, France; Changsha and Dalian, China; Campinas, Brazil; and Bangna, Bangkok, Thailand.

© 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.

Categories
Warren Buffett

Warren Buffett Reflects on Wealth and Philanthropy, Transfers Berkshire Shares to Family Foundations

(BRK.A), (BRK.B)

On November 25, Warren E. Buffett converted 1,600 Berkshire Hathaway Class A shares into 2.4 million Class B shares, gifting them to four family foundations. The Susan Thompson Buffett Foundation received 1.5 million shares, while The Sherwood Foundation, The Howard G. Buffett Foundation, and the NoVo Foundation each received 300,000 shares. This move reflects Buffett’s long-term commitment to philanthropy and his gradual transfer of wealth.

Buffett now holds 206,363 Class A shares, marking a 56.6% reduction since his 2006 pledge to give away most of his wealth. In 2004, before the passing of his first wife, Susie, the couple owned 508,998 shares, intending to distribute their fortune through philanthropy. After her death, Susie’s $3 billion estate largely funded their family foundation, with $10 million left to each of their three children.

Buffett emphasized his belief in leaving children “enough so they can do anything but not enough that they can do nothing.” Over the years, his children, Susie Jr., Howard, and Peter, have grown into capable philanthropists, managing foundations and overseeing significant charitable efforts. Buffett trusts them to handle the future distribution of his remaining Berkshire holdings, representing 99.5% of his wealth.

At 94, Buffett acknowledges the inevitability of aging but remains confident in his children’s ability to carry out his philanthropic vision. He also plans for potential successors to ensure the responsible deployment of his fortune. Reflecting on his life, Buffett expressed gratitude for his good fortune and reaffirmed his commitment to using wealth to create equal opportunities for others, rather than perpetuating dynastic riches.

Buffett concluded with advice for parents: discuss wills openly with children to avoid misunderstandings and foster unity. His own family has embraced his values, prioritizing philanthropy and simple living over materialism. As Buffett continues his journey, he takes pride in the enduring impact of his wealth and the shared commitment of his family to giving back.

© 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
Lubrizol

Lubrizol Collaborates with Lore Cycle to Revolutionize 3D-Printed Cycling Shoes

(BRK.A), (BRK.B)

Lubrizol, a Berkshire Hathaway company, has partnered with Lore Cycle to develop custom 3D-printed cycling shoes that redefine comfort and performance. Using Lubrizol’s advanced thermoplastic polyurethane (TPU) materials and expertise in additive manufacturing through its Avid 3D Printing brand, the collaboration delivers footwear tailored to each rider’s unique foot shape.

The innovative process begins with a 3D scan of the customer’s foot, enabling the creation of personalized components that provide unmatched fit, support, and durability. Lubrizol TPU is used to craft lightweight and robust shoe uppers, ensuring durability without compromising on comfort or performance.

“This collaboration exemplifies how Lubrizol’s 3D printing technology disrupts traditional manufacturing processes, enabling onshoring and delivering unprecedented levels of personalization,” said Gert-Jan Nijhuis, General Manager of Lubrizol 3D Printing.

The Lore Two cycling shoe, Lore Cycle’s latest innovation, is a prime example of this groundbreaking technology. CEO Stephan Drake highlighted its unique features, such as a carbon shell that conforms to the sole, relieves pressure, and optimizes biomechanics.

This partnership showcases the potential of additive manufacturing to transform footwear design, blending cutting-edge technology with material science for truly customized performance gear.

© 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
Lessons From Warren Buffett

Lessons From Warren Buffett: The Key to Investing Isn’t Just Going Against the Crowd

Warren Buffett is well-known for his advice, “Be fearful when others are greedy and greedy when others are fearful,” but he cautions against simply adopting a contrarian mindset.

At the 2006 Berkshire Hathaway Annual Meeting, Buffett clarified that success in investing doesn’t come from merely going against the crowd. He emphasized that what truly matters is having the right facts and reasoning. “Being contrarian has no special virtue over being a trend follower,” Buffett explained. Instead, the key to sound investing is ensuring that your decisions are based on accurate information and thoughtful analysis.

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
Forest River

Peter J. Liegl, Founder of Berkshire’s Forest River, Inc., Has Passed Away

(BRK.A), (BRK.B)

Peter J. Liegl, the founder of Berkshire Hathaway’s Forest River, Inc., has passed away. Liegl was a driving force behind the transformation of the RV industry and one of Indiana’s most respected citizens and philanthropists. He is best known for founding Forest River in 1996 and for selling the company to Warren Buffett’s Berkshire Hathaway in 2005, but his legacy in the RV world began long before that.

Liegl’s journey to success began from modest beginnings. After holding various sales and management positions in the RV industry, he co-founded Cobra Industries, a company that went public but saw him ousted. Undeterred, Liegl built his first RV by hand in a barn and sold it outside a Louisville lamp post, marking the beginning of “Where the forest meets the river.” This drive to succeed led him to establish Forest River in Elkhart, Indiana, with a vision to meet a wide range of consumer needs.

Under his leadership, Forest River grew into North America’s largest manufacturer of recreational vehicles, cargo trailers, pontoon boats, and commercial vehicles, including buses and trucks. Headquartered in Elkhart, Indiana, the company employs over 14,000 people across more than 100 facilities.

His management philosophy emphasized empowering employees and always prioritizing the consumer’s needs. As Liegl once said, “We don’t take ourselves too seriously, but we’re very serious about what we do.”

Despite planning a succession for the company, Liegl remained hands-on in the business well into 2024, leading innovation and growth at Forest River.

A proud Elkhart native, Liegl’s philanthropic efforts supported education, healthcare, conservation, and local 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
Lubrizol

Lubrizol and Polyhose Partner to Build State-Of-The-Art Medical Manufacturing Facility

(BRK.A), (BRK.B)

Lubrizol, a Berkshire Hathaway company and global leader in specialty chemicals, has signed a Memorandum of Understanding (MoU) with Polyhose, a global leader in fluid conveyance systems, to bolster innovation in India’s medical sector. The agreement was formalized in the presence of Tamil Nadu Industries Minister Dr. T.R.B. Rajaa and Industries Secretary V. Arun Roy.

The partnership aims to establish a state-of-the-art medical manufacturing facility in Tamil Nadu, increasing Lubrizol’s local medical tubing production by five times. This expansion will cater to domestic and international markets, producing high-quality tubing for critical neurovascular and cardiovascular applications such as balloon and minimally invasive catheters.

“This collaboration introduces precision manufacturing to India, opening new opportunities to serve critical care markets locally and globally,” said Bhavana Bindra, Lubrizol’s Managing Director for India, the Middle East, and Africa. The facility will use Lubrizol’s advanced thermoplastic polyurethane (TPU), known for its biocompatibility and high performance, and comply with ISO 13485 standards.

Lubrizol President and CEO Rebecca Liebert emphasized the company’s commitment to India’s growth, noting the country’s strategic role in its global operations. “This investment strengthens our local-for-local and local-for-global approach, ensuring access to world-class medical solutions,” she said.

The collaboration with Polyhose builds on a seven-year partnership and leverages Tamil Nadu’s industrial growth. Shabbir Y J, Managing Director of Polyhose, highlighted the state’s conducive environment for innovation and expansion.

The project is part of Lubrizol’s broader $350 million investment in India, which includes a Global Capability Center in Pune and major facilities in Gujarat and Aurangabad. Groundbreaking for the Tamil Nadu site is planned for 2025, with operations commencing in 2026.

© 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
Lessons From Warren Buffett

Lessons From Warren Buffett: Buffett’s Journey from Failure to Legendary Investor

Warren Buffett, the legendary investor, wasn’t always the success story we know today. Many assume his investing prowess came naturally, but in reality, his early attempts were far from fruitful.

At the 2002 Berkshire Hathaway Annual Meeting, Buffett reflected on his early struggles. “From eleven to nineteen, I read every book on investing—Garfield Drew, Edwards and Magee, Gerald M. Loeb—and I didn’t do well at all,” he said. “I had no real investment philosophy and tried many things without making money.”

Everything changed in 1949 when Buffett read The Intelligent Investor by Benjamin Graham while studying at the University of Nebraska. “It changed my whole view of investing,” Buffett noted. “It taught me to think about a stock as part of a business, which now seems obvious, but it was my Rosetta Stone.”

This shift in perspective laid the foundation for Buffett’s later success, proving that even the most legendary figures in finance have their learning curves.

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
Benjamin Moore

Benjamin Moore Partners with Roadie to Offer Same-Day Paint Delivery

(BRK.A), (BRK.B)

In response to rising demand for quick delivery, Berkshire Hathaway’s Benjamin Moore, a leading paint and coatings company, has partnered with Roadie to provide same-day delivery, ensuring projects aren’t delayed. This collaboration helps independent retailers and painting contractors offer superior service, benefiting customers with faster access to high-quality paints and coatings.

The move has proven advantageous. According to Roadie, companies offering same-day delivery have seen boosts in customer satisfaction (80%), sales (70%), and retention rates (66%). Since Benjamin Moore’s partnership with Roadie began in 2020, they’ve expanded delivery services to a wider network of retailers, helping them meet increased consumer demand.

Many retailers using the Roadie network have enhanced customer satisfaction by delivering paint products within a 20-mile radius in as little as three hours. “Getting a project done on time is critical, whether you’re a professional or a parent preparing a nursery,” said Roadie CEO Marc Gorlin. “Our partnership helps Benjamin Moore reach customers where they are, delivering color to their door one gallon at a time.”

Roadie’s extensive network of over 200,000 drivers reaches 97% of U.S. households, making same-day delivery accessible and convenient. This partnership model exemplifies how brands can help independent retailers meet consumer expectations for speed and service, ultimately driving loyalty and preference in a competitive 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
Berkshire Hathaway Specialty Insurance

Berkshire Hathaway Expands Italian Team with New Heads of Claims and Cyber

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance (BHSI) has expanded its leadership team in Italy with two key appointments. Vincenza “Cinzia” Viele has been named Head of Claims, while Alessandro Majerna will serve as Head of Professional Indemnity (PI) and Cyber for Executive & Professional Lines. Both will be based in Milan.

Country Manager Leonardo Castrichino expressed enthusiasm for the additions, highlighting BHSI’s commitment to providing top-tier claims service. “With our ‘CLAIMS IS OUR PRODUCT’ philosophy, it is particularly exciting that Vincenza is joining our leadership team to oversee delivery of our all-important product, exceptional claims service,” he stated.

Marco Vantellino, Head of Executive & Professional Lines for BHSI in Italy, shared his confidence in Majerna’s expertise in PI and cyber. “Alessandro brings outstanding experience and a passion for his work that will serve our business, our customers, and our brokers well in Italy and beyond,” he said.

Cinzia joins BHSI with over 24 years of experience in claims management, overseeing complex property and casualty cases for large corporate and multinational clients. Alessandro brings more than 15 years of expertise in professional indemnity and cyber insurance, making him well-suited to help BHSI grow in this sector.

© 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.