Month: June 2025

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Lessons From Warren Buffett

Lessons From Warren Buffett: The Importance of Liquidity

Warren Buffett is always on the lookout for undervalued stocks and businesses, but he never forgets the importance of maintaining liquidity. No matter how attractive an investment opportunity may seem, ensuring sufficient cash reserves is key to financial stability.

At the 2012 Berkshire Hathaway Annual Meeting, Buffett emphasized this principle: “We know we don’t want to go broke… And we know you can’t go broke if you’ve got a fair amount of liquid reserves around and you don’t have any near-term debts.”

This highlights a fundamental rule of investing—having liquidity protects against unforeseen downturns and allows investors to seize opportunities without financial strain. No matter the market conditions, maintaining a strong cash position is a strategy that ensures long-term success.

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.

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Berkshire Hathaway Specialty Insurance

BHSI Launches Tailored Management Liability Insurance for Australia’s Life Sciences Sector

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance (BHSI) has unveiled a new Management Liability Insurance Policy designed specifically for Life Science, Biotech, and Pharmaceutical (LBP) companies in Australia. The policy addresses the unique risks faced by this fast-growing sector, particularly early-stage and R&D-focused businesses.

“The new LBP Management Liability Policy reflects our commitment to Australia’s thriving life sciences community and our deep understanding of the challenges start-ups face at every stage of their journey,” said Jessica Jefferies, Underwriting Manager at BHSI Australia.

The policy offers enhanced coverage not typically included in standard management liability products. It protects Directors, Officers, and members of Scientific and Medical Advisory Boards, and includes critical features such as coverage for private capital raisings and protection in the event of company insolvency. Importantly, it also offers options to extend coverage to U.S. exposures, acknowledging the common pursuit of FDA approvals by Australian firms.

This launch builds on BHSI’s strong position in the Directors and Officers insurance market for ASX-listed life sciences companies and supports its broader strategy to deliver tailored solutions across the life sciences value chain—from start-up to scale.

© 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.

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Lubrizol

Berkshire’s Lubrizol’s Apisolex™ Polymer Excipient-Enabled Drug Formulation in Phase 1 Clinical Trials

(BRK.A), (BRK.B)

Berkshire Hathaway’s Lubrizol has announced a significant milestone: a drug formulation enabled by its Apisolex™ polymer excipient has entered Phase 1 clinical trials. Launched in 2022, Apisolex is a polyamino acid-based polymer designed to dramatically enhance the solubility of challenging active pharmaceutical ingredients (APIs), specifically those classified as BCS Class II and IV.

Manufactured according to Good Manufacturing Practices (GMP), Apisolex is suitable for a variety of dosage forms, including parenteral administration. Its unique formulation has demonstrated the ability to increase the solubility of certain APIs by up to 50,000 times, making it a valuable tool for the development of hard-to-formulate drugs across multiple therapeutic areas and delivery routes.

Apisolex is currently being evaluated in several programs worldwide, supporting the delivery of APIs that have previously posed significant formulation challenges. Kevin Song, Senior Director of Lubrizol’s Global Pharmaceutical and Nutraceutical Business, emphasized the importance of this development: “The progression to clinical trials of a medicinal product formulated with Apisolex polymer excipient demonstrates its ability to provide differentiated solutions to solubility and bioavailability challenges in parenteral formulations.”

Lubrizol is committed to expanding the global reach of Apisolex and strengthening collaborations with drug manufacturers facing solubility hurdles, paving the way for more effective therapies in the future.

© 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.

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Benjamin Moore

Benjamin Moore and Williams-Sonoma Join Forces in Multi-Year Partnership

(BRK.A), (BRK.B)

Benjamin Moore, the iconic paint and coatings company owned by Berkshire Hathaway, has announced a multi-year partnership with Williams-Sonoma, Inc., the world’s largest digital-first and design-led home retailer. The collaboration spans across Williams-Sonoma’s portfolio brands: Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, and Rejuvenation.

This strategic alliance brings together Benjamin Moore’s renowned paint quality and color expertise with the elevated style of Williams-Sonoma’s home furnishings. Together, the brands will develop seasonal, curated color palettes designed to complement furniture and décor collections, enhance in-store experiences, and inspire customers to create cohesive, personalized spaces.

“Benjamin Moore is proud to partner with Williams-Sonoma, Inc. to bring exceptional design and unmatchable color to customers looking to elevate their spaces,” said Dan Calkins, Chairman and CEO of Benjamin Moore.

Laura Alber, President and CEO of Williams-Sonoma, Inc., added, “Partnering with Benjamin Moore enhances our collective customer experience. Their unmatched color expertise gives our customers new ways to bring their vision to life.”

The partnership will also feature branded digital and social content, showcasing the collaboration through expertly styled photography using Benjamin Moore paints. In-store design teams at the participating Williams-Sonoma brands will also be equipped with Benjamin Moore tools to offer personalized color consultations and design advice.

© 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.

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Lessons From Warren Buffett

Lessons From Warren Buffett: Why Speculation Dooms Investors

Excessive speculation has repeatedly led to the downfall of investors and markets. As Warren Buffett explains, it often begins with early investors identifying a genuine, overlooked opportunity. However, as word spreads, the investment loses its connection to fundamentals and turns into pure speculation—inevitably leading to a crash.

At the 2006 Berkshire Hathaway Annual Meeting, Buffett summed it up succinctly: “What the wise man does in the beginning, the fool does in the end.” He pointed out that asset classes initially driven by strong fundamentals eventually attract speculative interest, which can spiral out of control. A classic example is the infamous tulip mania in Holland in the 17th century, where the initial value of tulips was rational but soon became wildly inflated due to speculative frenzy.

This cycle repeats throughout history: early investors profit based on fundamentals, but as greed and envy take hold, speculation dominates, and the bubble bursts. The lesson? Investors must remain cautious and avoid being swept up in speculative manias detached from intrinsic value.

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
Berkshire Hathaway Specialty Insurance

BHSI Launches New Insurance Products in Italy

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance (BHSI) has expanded its offerings in Italy with the introduction of Miscellaneous Professional Indemnity and Public Offering of Securities Insurance. These additions follow the December 2024 launch of BHSI’s proprietary Directors & Officers Liability Insurance in the country.

“Launching our proprietary policy wordings in Italy underscores our commitment to leading both domestic and international insurance programs,” said Marco Vantellino, Head of Executive and Professional at BHSI Italy. “Our approach prioritizes clarity, flexibility, and contract certainty for customers.”

BHSI writes business on a net capacity basis, allowing for tailored coverage and swift local decision-making across underwriting and claims. The company’s service ethos, embodied in its CLAIMS IS OUR PRODUCT philosophy, highlights its focus on delivering excellent claims support.

Leonardo Castrichino, BHSI Italy’s Country Manager, emphasized the company’s growth ambitions: “This launch marks another milestone in our expansion. We aim to continue growing by hiring top talent, launching innovative products, entering new segments, and broadening our presence across Italy.”

The new insurance policies are now available throughout Italy.

© 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.