Month: February 2025

Categories
Acquisitions

Berkshire’s Marmon Aerospace & Defense Acquires Marine Tech Wire & Cable

(BRK.A), (BRK.B)

Marmon Aerospace & Defense Group, a division of Marmon Holdings, Inc. and a Berkshire Hathaway company, has successfully acquired Marine Tech Wire & Cable, Inc., a specialized manufacturer of circuit integrity cables used in U.S. Navy ships.

Founded in 2000 and based in York, PA, Marine Tech enhances Marmon A&D’s portfolio with its expertise in power, specialty, lightweight, low smoke, silicone, and watertight cabling for mission-critical shipboard applications. The acquisition strengthens Marmon’s ability to provide high-performance solutions with increased capacity and reduced lead times.

Charles Clement, President of Marmon A&D Group, highlighted the benefits of the acquisition, stating that it complements their newly opened Hooksett, NH marine power cable facility. Senior Vice President Robert Canny emphasized that Marine Tech’s expertise aligns perfectly with Marmon’s shipboard product line, enhancing support for Navy ship contracts.

Marine Tech owners Mark Lindsay and Kostanis Contanious expressed enthusiasm for joining Marmon, noting that the partnership will add value for customers. Both will remain with the business to support its ongoing growth.

© 2025 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

Berkshire’s Jazwares Partners with Yo Gabba Gabba! for Global Toy Launch

(BRK.A), (BRK.B)

Berkshire Hathaway’s Jazwares, a leading toy company, has announced a multi-year global licensing agreement to produce an extensive range of toys, costumes, and accessories inspired by the beloved children’s franchise Yo Gabba Gabba!. The agreement was signed with franchise owner Gabbacadabra LLC—co-owned by Yo Gabba Gabba, LLC and WildBrain—and facilitated by Golden Sombrero Licensing.

Under this deal, Jazwares will hold the global master toy rights for Yo Gabba Gabba!, including figures, plush toys, playsets, musical instruments, and Squishmallows, as well as a new line of pet toys and accessories. Additionally, Jazwares will manage North American costume rights for all ages, covering seasonal and dress-up costumes. The new Yo Gabba Gabba! product line is set to launch in 2025.

First premiering in 2007, Yo Gabba Gabba!—created by Christian Jacobs and Scott Schultz—has captivated generations with its mix of music, colorful characters, and animation. Its latest series, Yo Gabba GabbaLand!, debuted in August 2024 on Apple TV+, introducing a fresh world of fun and adventure.

“Yo Gabba Gabba! has inspired millions of kids worldwide, and we’re honored to be part of its next chapter,” said Sam Ferguson, Senior VP of Global Licensing at Jazwares. Co-creator Christian Jacobs added, “Jazwares is an innovative leader, and we couldn’t think of a better partner to bring our characters into kids’ hands.”

With this major partnership, fans can look forward to playing at home with Yo Gabba Gabba! favorites like Muno, Brobee, Foofa, Toodee, and Plex once again.

© 2025 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
Minority Stock Positions

Why Warren Buffett is More Bullish Than Ever on Japanese Stocks

(BRK.A), (BRK.B)

Warren Buffett’s confidence in Japanese stocks remains strong, as Berkshire Hathaway will continue increasing its investments in Japan. In his 2025 annual letter to shareholders, Buffett highlighted Berkshire’s growing commitment to the country, calling it a “small but important exception” to the company’s traditional U.S.-focused investment strategy.

Berkshire’s involvement in Japan began in July 2019, when it first purchased shares in five major Japanese trading houses: ITOCHU, Marubeni, Mitsubishi, Mitsui, and Sumitomo. These firms operate in a manner similar to Berkshire itself—owning stakes in a wide range of businesses both in Japan and globally. Initially attracted by their low valuations, Buffett and Berkshire’s Vice Chairman of Berkshire – Non-Insurance Operations, Greg Abel, have grown increasingly impressed with their capital allocation strategies, management discipline, and shareholder-friendly policies.

A key factor in Berkshire’s admiration for these companies is their prudent approach to capital deployment. Buffett noted that the five firms increase dividends when appropriate, conduct share buybacks when sensible, and exhibit more restrained executive compensation practices compared to their U.S. counterparts. As a result, Berkshire has committed to being a long-term investor and an active supporter of their boards.

While Berkshire originally agreed to keep its ownership stake in each company below 10%, the firms have since agreed to moderately relax this limit, paving the way for further investment. At the end of 2024, Berkshire’s total cost basis in the five firms stood at $13.8 billion, while the market value of its holdings had grown to $23.5 billion—a testament to their strong performance.

In addition to stock investments, Berkshire has also steadily increased its yen-denominated borrowings at fixed interest rates, maintaining a currency-neutral position. While Berkshire does not speculate on future exchange rate movements, GAAP accounting rules require it to recognize currency gains and losses. In 2024 alone, Berkshire recorded $850 million in after-tax gains due to the strengthening U.S. dollar, contributing to a cumulative $2.3 billion currency gain.

Buffett sees Berkshire’s Japanese investments as a long-term commitment, expecting Greg Abel and future successors to hold and expand these positions for decades. Looking ahead, Berkshire also anticipates exploring new ways to collaborate productively with the five companies, strengthening its presence in Japan’s corporate landscape.

With Berkshire’s growing stake and its disciplined investment philosophy, Buffett’s bet on Japan continues to pay off—solidifying his reputation as one of the world’s most patient and strategic investors.

© 2025 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
Financial Reports

Buffett’s Empire Thrives: Berkshire Hathaway Posts $47.4B in Earnings

(BRK.A), (BRK.B)

Berkshire Hathaway, the conglomerate led by Warren Buffett, reported a substantial increase in its annual earnings for 2024, driven by strong performance in its insurance businesses and foreign currency gains. The company’s operating earnings surged to $47.4 billion, marking a significant rise from $37.35 billion in 2023.

The standout performer was the insurance underwriting segment, which saw its profits jump to $9.02 billion, up from $5.43 billion the previous year. This increase was fueled by improved underwriting results and disciplined risk management. Additionally, insurance investment income rose sharply to $13.67 billion, compared to $9.57 billion in 2023, benefiting from higher interest rates and strong investment performance.

Berkshire’s railroad subsidiary, BNSF, remained relatively stable, generating $5.03 billion in earnings, slightly down from $5.09 billion in 2023. Meanwhile, Berkshire Hathaway Energy posted an impressive rise, contributing $3.73 billion, up from $2.33 billion, thanks to improved utility earnings and renewable energy investments.

Among Berkshire’s other controlled businesses, including manufacturing, retail, and services, earnings held steady at $13.07 billion, a marginal decrease from the previous year’s $13.36 billion. However, earnings from non-controlled businesses, which include stakes in Kraft Heinz and Occidental Petroleum, declined to $1.52 billion from $1.75 billion.

A notable boost came from foreign currency exchange gains, which added approximately $1.1 billion to the bottom line in 2024, compared to just $211 million in 2023. This helped drive a category labeled “Other” from a loss of $175 million in 2023 to a positive $1.4 billion in 2024.

Berkshire’s operating earnings were particularly strong in the fourth quarter, soaring 71% compared to the same period in 2023. Additionally, the company’s cash position reached an all-time high of $334 billion, reflecting Buffett’s disciplined approach to capital allocation and the firm’s strong cash flow generation.

Berkshire Hathaway’s strong performance in 2024 underscores its ability to capitalize on interest rate movements, sound investment strategies, and operational efficiencies across its diverse business portfolio. With a robust balance sheet and a disciplined approach to capital allocation, the conglomerate remains well-positioned for future growth.

© 2025 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
Duracell

Battery Giant Duracell to Open State-of-the-Art R&D Facility in Atlanta

(BRK.A), (BRK.B)

Berkshire Hathaway’s Duracell, a global leader in battery manufacturing, will move its Research and Development (R&D) headquarters to Atlanta, Georgia. The new facility, set to open in Summer 2026, will be housed in the cutting-edge Science Square Labs, a state-of-the-art research hub developed by Trammell Crow Company.

“This move is a significant milestone for Duracell as we continue to drive innovation in battery technology,” said Dr. Liben Hailu, Chief Technology Officer at Duracell. “We’re excited about the opportunities Atlanta will bring and confident that this new chapter will strengthen our position as an industry leader.”

The facility will feature advanced laboratories, modern collaborative workspaces, and cutting-edge technology infrastructure to support research and innovation. The relocation is expected to create over 100 jobs, boosting Atlanta’s growing technology sector.

Georgia Tech President Ángel Cabrera welcomed Duracell’s move, emphasizing the benefits of industry-academia collaboration. “This partnership fosters an environment where innovation thrives and leads to groundbreaking advancements,” he said.

Governor Brian Kemp also praised the decision, highlighting Georgia’s strong business environment. “Duracell’s move confirms that our state offers the ideal conditions for companies to grow and succeed,” he said.

Duracell plans to support employees throughout the transition while maintaining high engagement and morale. “Atlanta’s vibrant tech ecosystem and access to top-tier talent will enhance our ability to innovate efficiently and deliver superior products,” added Dr. Hailu.

The move marks a major step in Duracell’s ongoing commitment to innovation and industry leadership.

© 2025 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
Dairy Queen

Dairy Queen Franchisee Closes 25 Texas Stores, Holds Auction

(BRK.A), (BRK.B)

This coming summer will be a bit sadder in a whole bunch of small Texas towns. Famous for its beloved Blizzard® Treat and Dilly® Bar, Dairy Queen has long been a favorite among ice cream and fast-food lovers. However, 25 DQ restaurants in Texas closed last week and 24 were put up for auction by the franchise owner.

Founded in 1940, the first Dairy Queen® restaurant in Joliet, Illinois, and has since become a global brand owned by Berkshire Hathaway.

The contents of the shuttered Texas restaurants are now up for auction, with bidding set for Thursday, February 20, at 12:00 PM CT. Winning bidders must remove their purchases by February 25.

A spokesperson for American Dairy Queen Corporation shared, “We can confirm that 25 DQ restaurants in the Texas Panhandle, North Texas, and West Texas/South Plains–owned by a single franchise owner–closed last week. The franchise owner continues to own and operate other DQ restaurants in Texas. It was this franchise owner’s decision to participate in an online auction.”

The spokesperson further noted that the closures were an isolated event, and that the company refrains from publicly sharing contract terms.

International

Dairy Queen, a subsidiary of Berkshire Hathaway since its $585 million acquisition in 1997, has expanded significantly to over 7,700 DQ restaurants in more than 20 countries, with notable growth in China.

© 2025 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: Keeping Your Head in a Market Bubble

Warren Buffett acknowledges that stock market prices can sometimes drift far from their underlying fundamentals. For him, these moments present both risks and opportunities.

“People get captivated simply by the notion of rising prices without going back to the underlying rationale,” Buffett said during the 1997 Berkshire Hathaway Annual Meeting. “That’s when you get very dangerous conditions in terms of possible bubbles.”

This disconnect isn’t limited to price surges. According to Buffett, market extremes occur both in booms and busts, driven by emotional reactions. “People behave in extreme ways in markets,” he observed. “And over time, that’s very good for people that keep their heads.”

Buffett’s advice? Stay grounded, focus on fundamentals, and take advantage of market misjudgments when others lose perspective.

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2025 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
Minority Stock Positions

Berkshire Hathaway Trims DaVita Stake in Planned Share Repurchase

(BRK.A), (BRK.B)

Berkshire Hathaway, DaVita’s largest institutional investor, has sold 203,091 shares of the dialysis provider, reducing its ownership stake to 45%, according to a regulatory filing on Thursday. The transaction is part of an ongoing share repurchase agreement established between the two companies in April 2024.

Under the agreement, DaVita repurchases shares on a quarterly basis to ensure Berkshire’s stake remains at 45%. These buybacks are executed at a volume-weighted average price based on shares acquired from public investors during the period.

Over the years, Berkshire’s long-term ownership stake had been gradually increasing as DaVita continued its stock repurchases. This structured agreement provides an orderly mechanism for Berkshire to reduce its holdings while allowing DaVita to manage its capital structure effectively.

© 2025 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
Marmon Group UTLX

Berkshire Hathaway’s Railcar Giants Merge Forces for Greater Efficiency

(BRK.A), (BRK.B)

Union Tank Car Company (UTLX) and Procor Limited, both subsidiaries of Marmon Holdings, Inc., a Berkshire Hathaway holding company, have announced a strategic consolidation of operations across North America. This initiative aims to streamline processes, enhance collaboration, and improve customer service.

Under the new structure, UTLX and Procor will operate as a unified entity, aligning resources and expertise to better meet the evolving demands of the rail industry. “By consolidating our operations and realigning our leadership team, we are strengthening our ability to deliver consistent, high-quality products and services to our customers across North America,” said Neil Finn, President of UTLX and Procor.

Key Leadership Appointments:

Kate Suprenuk, President of Leasing and Manufacturing: With extensive experience in railcar leasing and finance, Suprenuk will oversee UTLX and Procor’s leasing and manufacturing operations, including key production facilities.

Jeremy DeLacerda, President of Engineering, Quality, and Repair: DeLacerda will lead engineering, quality, and repair operations across the network, leveraging over 20 years of industry experience.

Randy Pocrnick, Senior Vice President of Leasing Sales and Marketing: A veteran of Procor, Pocrnick will drive sales, marketing, and customer experience initiatives.

The transition is already in motion, with a strong focus on minimizing disruptions for customers and employees. UTLX and Procor remain committed to maintaining the highest standards of safety, quality, and operational excellence.

Together, UTLX and Procor operate a fleet of approximately 120,000 railcars, serving key industries such as chemical, petrochemical, energy, and agriculture. With this transformation, the companies aim to deliver even greater value and efficiency to their customers across North America.

© 2025 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: Barriers to Entry and Business Longevity

New businesses emerge constantly, reflecting the dynamic nature of the entrepreneurial world. However, for long-term investors like Warren Buffett, the focus is on businesses with high barriers to entry—features that protect them from being overwhelmed by competition.

At the 2012 Berkshire Hathaway Annual Meeting, Buffett emphasized the importance of these barriers. “There are some industries that are just never going to have barriers to entry,” he noted. “In those industries, you better be running very fast because there are a lot of other people…looking at what you’re doing and trying to figure out…what they can do a little bit better.”

In industries with low barriers, businesses must innovate and adapt quickly to stay ahead, making them less appealing for long-term investment. Buffett’s advice underscores the importance of choosing enterprises that are shielded from relentless competition.

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2025 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.