Month: September 2025

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Lessons From Warren Buffett

Lessons From Warren Buffett: How to Judge a Company’s Management

For long-term business success, few factors are as important as the quality of a company’s management. Warren Buffett believes that investors should focus on two key areas when evaluating leadership.

At the 1994 Berkshire Hathaway Annual Meeting, Buffett explained, “You judge management by two yardsticks: how well they run the business, and how well they treat their shareholders.”

The first involves understanding the business and assessing how management has performed over time—especially how they’ve allocated capital compared to competitors. It’s essential to consider the conditions they inherited and how effectively they’ve handled them.

The second measure is shareholder treatment. According to Buffett, good managers tend to act in the best interest of owners, while poor ones often neglect shareholders.

In Buffett’s experience, these two traits usually go hand in hand: managers who perform poorly often show little regard for shareholders. For investors, that’s a red flag worth watching.

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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Lubrizol

Lubrizol Expands Partnership with Arihant Innochem into Nutraceuticals

(BRK.A), (BRK.B)

Berkshire Hathaway’s Lubrizol Corporation has expanded its partnership with India’s Arihant Innochem to include its Nutraceuticals portfolio, extending a collaboration that has lasted more than 30 years.

The move gives Lubrizol broader access to India’s fast-growing health and wellness market, while Arihant adds to its distribution network in Health, Home, and Personal Care.

“The partnership combines Lubrizol’s expertise in science-backed Nutraceutical solutions with Arihant’s distribution capabilities to support continued expansion,” said Jayesh Vithalani, Senior Manager at Lubrizol.

Arihant Managing Director Jinesh Shah said the addition positions the firm to build a niche in the country’s wellness space.

Lubrizol operates more than 100 facilities worldwide and employs over 7,000 people.

© 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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Kraft Heinz

Kraft Heinz to Split Into Two Independent Companies

(BRK.A), (BRK.B)

The Kraft Heinz Company (Nasdaq: KHC) has announced plans to separate into two independent, publicly traded companies through a tax-free spin-off. The move, unanimously approved by its Board of Directors, is aimed at simplifying operations and unlocking long-term growth by giving each business sharper focus and resources aligned with its strategy.

The two new entities will be:

Global Taste Elevation Co. – A global leader in sauces, spreads, seasonings, and shelf-stable meals with about $15.4 billion in 2024 net sales and $4.0 billion in adjusted EBITDA. Its portfolio will include Heinz, Philadelphia, and Kraft Mac & Cheese, with strong positions in both emerging markets and the Away From Home segment.

North American Grocery Co. – A North America-focused portfolio of grocery staples with $10.4 billion in 2024 net sales and $2.3 billion in adjusted EBITDA. Led by current CEO Carlos Abrams-Rivera, the business will feature well-known brands such as Oscar Mayer, Kraft Singles, and Lunchables, generating steady cash flow and pursuing growth in core and adjacent categories.

Executive Chair Miguel Patricio said the separation will reduce complexity and allow each company to better allocate capital, focus on growth, and deliver long-term shareholder value. Abrams-Rivera added that the move “will unleash the power of our brands and unlock the potential of our business.”

Kraft Heinz emphasized that both companies are expected to maintain investment-grade capital structures, preserve the current dividend level, and retain financial flexibility for organic growth, shareholder returns, and strategic opportunities.

The separation follows a strategic review launched in May 2025, with the company concluding that creating two standalone businesses provides the best path to maximize value for shareholders.

© 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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McLane

McLane Opens Austin Tech Hub to Accelerate Digital Transformation

(BRK.A), (BRK.B)

McLane Company Inc., a Berkshire Hathaway subsidiary and one of the nation’s largest distributors, has opened a new technology hub in Austin, Texas, to support its growing Information Technology & Digital (IT&D) team and accelerate its AI-driven strategy.

The Austin hub will house about 100 specialists in cyber, data, AI, and cloud engineering, giving McLane access to the city’s deep tech talent pool. The move reflects the company’s push to strengthen its digital foundation through automation, frictionless experiences, and real-time visibility.

Leading the effort is Chief Information & Digital Officer Murat Genc, who joined McLane in September 2024 after senior roles at Whirlpool and Procter & Gamble. “Our investments in digital supply chain, cloud, data and AI are laying the groundwork for a future-ready logistics, retail and food services model,” Genc said.

McLane has also expanded its leadership team with four seasoned executives:

Tanya Coutray, VP & Retail CIDO, with experience at AWS, Walmart, and T-Mobile.

Nick Elizondo, VP of Enterprise & Supply Chain Platforms, formerly with PepsiCo and Keurig Dr Pepper.

Juan Gomez-Sanchez, VP of Cybersecurity, recognized among the nation’s top CISOs.

Sid Kulkarni, VP of Data, Analytics & AI, with leadership experience at Intel, Lowe’s, Oracle, and FICO.

With its Austin expansion and strengthened IT&D leadership, McLane is positioning itself as a digital-first supply chain and distribution powerhouse.

© 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.