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Insurance

Berkshire Hathaway Denies Ownership Stake in IRB Brasil Re

(BRK.A), (BRK.B)

Berkshire Hathaway has taken the unusual step of refuting rumors of an ownership stake in a company.

In a release, the company said:

There have been recent stories in the Brazilian press that Berkshire Hathaway Inc. is a shareholder of IRB Brasil Re (“IRB”). Those stories are incorrect. Berkshire Hathaway Inc. is not currently a shareholder of IRB, it has never been a shareholder of IRB and it has no intention of becoming a shareholder of IRB.

© 2020 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 HomeServices

Top 100 Real Estate Producer Sharp Group Atlanta Joins Berkshire Hathaway HomeServices Georgia Properties

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices Georgia Properties has announced that Sharp Group Atlanta has joined our Alpharetta/ North Fulton Office. Led by Phoenix Award recipient Ann-Marie Sharp, the team brings over 50 years of combined real estate experience.

“I am honored to welcome Sharp Group Atlanta to the Berkshire Hathaway HomeServices network,” said Dan Forsman, President and CEO Berkshire Hathaway HomeServices Georgia Properties. “The exceptional value and service delivered by Ann-Marie and her team plus the iconic Berkshire Hathaway HomeServices brand and our advanced marketing & technology will create a very powerful combination to take their business to a higher level.”

Ann-Marie began her career as an on-site new construction agent and then moved into the resale market. During the real estate recession, she shifted gears and developed her expertise in short sales and foreclosures. With 15 years of experience, she and her team have proven experience in all aspects of residential real estate and are ready to help their clients and customers in Greater Metro Atlanta find the right place to love and call home.

Ann-Marie and her team pride themselves on delivering a client-centered approach that goes beyond typical real estate transactions. Her mission is to transform the client engagement into a gratifying and stress-free experience, catering to every client’s unique needs, and establishing personal relationships that last forever.

Sharp Group Atlanta has significant experience living and working on both sides of the perimeter which allows them to better advise clients across the greater metro Atlanta area. In 2019, Ann-Marie was named one of Atlanta’s Top 100 Producers by The Atlantan magazine.

“My team and I are delighted to be joining Berkshire Hathaway HomeServices Georgia Properties at the company’s state-of-the-art office in downtown Alpharetta,” said Ann-Marie Sharp, Team Leader of Sharp Group Atlanta. “We look forward to offering our clients an elevated level of service, award-winning marketing, and new strategic resources. In addition to Residential Real Estate, my team is now able to offer Property Management, Commercial Services, and New Development Services. I have always admired the Berkshire Hathaway HomeServices organization, culture, and professional approach to real estate. On day one, they did not disappoint. The entire Marketing Department welcomed us with a ready-to-go suite of beautiful materials already personalized for our team. We have always provided our clients with the highest level of service. We are excited to have now aligned our team with a brokerage with the same standard of excellence and superior level of marketing and technology. We are ready to go full speed ahead into the busy spring market.”

“We are so pleased to have Sharp Group Atlanta as a member of our Alpharetta/ North Fulton office family,” said Mary Wargula, Senior Vice President and Managing Broker Alpharetta/North Fulton Office. “Ann-Marie Sharp and her team are highly professional sales associates who have an unprecedented work ethic to deliver excellence for their clients and customers.”

© 2020 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

Berxi Enters Strategic Alliance with Vizient Insurance Services to Offer Medical Malpractice Insurance to Members

(BRK.A), (BRK.B)

Berxi, a part of Berkshire Hathaway Specialty Insurance, has entered into a strategic alliance with Vizient Insurance Services, LLC, a subsidiary of Vizient, Inc., to offer medical malpractice insurance products to Vizient member allied health professionals through an enhanced digital experience.

The agreement with Vizient, the nation’s largest member-driven health care performance improvement company, became effective Jan 1.

A feature of the agreement is Berxi’s ability to provide Vizient members with fast, efficient digital access to affordable high-quality medical malpractice insurance. Members can choose from a range of limits and take advantage of noteworthy coverage features, such as defense costs that are paid in addition to the insurance limits. Quotes are available online in minutes at berxi.com/vizient.

“We look forward to supporting Vizient member health professionals in their insurance needs through this agreement,” said Adam Yasan, Managing Director of Berxi. “Many health care professionals are looking for more insurance protection and the Berxi digital sign-up experience provides ease of access, speed and choice in coverage to meet these needs.”

Vizient provides solutions and services that improve the delivery of high-value care by aligning cost, quality and market performance for more than 50% of the nation’s acute care providers, which includes 95% of the nation’s academic medical centers, pediatric facilities, community hospitals, integrated health delivery networks and more than 20% of ambulatory providers.

© 2020 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
BNSF

BNSF Railway Releases 2019 Economic Development Results

(BRK.A), (BRK.B)

BNSF Railway Company (BNSF) has reported investments from customers served by the freight rail provider in 2019 totaled approximately $1.2 billion.

Large investments from customers including Ag Processing Inc., SeaCa Packaging and Hostess Brands, LLC contributed to the sum.

As a result of customer investments, BNSF projects the creation of more than 2,000 new jobs in local communities. This marks the ninth consecutive year that BNSF customers and local economic development organizations have invested more than $1 billion in a calendar year for new or expanded facilities.

“BNSF strives to offer unique supply chain solutions that fit our customers’ logistical needs and help maximize their investments,” said Colby Tanner, assistant vice president, economic development. “The flexibility of our rail development program allows our customers to reach new growing markets while saving time and money.”

In 2019, new developments supported a wide variety of commodities including consumer, agricultural and industrial products in more than 100 communities across the BNSF network. Highlights of supply chain solutions BNSF helped its customers achieve in 2019 include:

• Ag Processing Inc. – A $300 million investment led to the opening of its 10th soybean processing location in Aberdeen, S.D. Ag Processing Inc.’s newest facility is expected to process more than 50 million bushels of soybeans annually and create 60 new jobs.

• Hostess Brands, LLC – Located in Edgerton, Kan., the new distribution center supports 200 new jobs. The $35 million investment strengthens the company’s distribution strategy with a direct connection to the nation’s supply chain through Logistics Park Kansas City.

• SeaCa Packaging – A subsidiary of Seattle-Tacoma Box Company, the plastics manufacturer invested $18 million in opening its first plant location in Surprise, Ariz., creating boxes for agriculture products and gaining access to demand in the Southwest region.

© 2020 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 HomeServices

Berkshire Hathaway HomeServices Begins Franchise Operations in Canada

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices has begun operating in Canada, as Toronto-based Blue Elephant Realty joined the globally acclaimed brokerage network. Blue Elephant will begin operating as Berkshire Hathaway HomeServices Toronto Living Realty next month.

Blue Elephant Realty, founded in 2015 by Blair Johnson and Mark Wadden, has more than 100 innovative real estate professionals and has rapidly evolved into one of Toronto’s most sought after and respected luxury residential real estate firms.

Blue Elephant Realty agents have a well-earned reputation for providing their customers with unprecedented, personalized service, coupled with a comprehensive array of marketing services. Their agents focus on the Greater Toronto Area and will seek to rapidly expand through the new relationship.

The addition of Canada furthers Berkshire Hathaway HomeServices’ global reach, who over the past three years has added franchisees in London (Kay & Co.); Dubai (Gulf Properties); Madrid and Barcelona (Larvia); Lisbon (Portugal Property); Milan (Maggi Properties); and Berlin and Frankfurt (Rubina Real Estate).

“Establishing a franchise presence in Canada has been a major focus of our network’s global expansion,” said Gino Blefari, chairman of Berkshire Hathaway HomeServices. “To that end, we are delighted to have innovative market leaders like Blair (Johnson), Mark (Wadden) and their team join the Berkshire Hathaway HomeServices network and we look forward to supporting their continued growth.”

“We are very pleased that this extraordinary team of professionals are our brokerage network’s entrée into Canada,” said Chris Stuart, CEO of Berkshire Hathaway HomeServices. “Combining the Berkshire Hathaway HomeServices brand with their well-established reputation for innovation and customer service is a win/win for their customers and Toronto’s real estate market as a whole.”

“We are excited about this next stage in our evolution as industry leaders,” said Stephanie Newlands, senior VP of sales. “By joining the Berkshire Hathaway HomeServices network, which carries the name of one of the world’s most respected companies, we will have the capabilities for providing our clients with an unparalleled level of resources and personalized services.”

“Blue Elephant Realty is a well-respected company with outstanding leadership and we are very proud that they will be a part of our real estate brokerage network family,” added Blefari.

The company also gains access to Berkshire Hathaway HomeServices’ ‘FOREVER Cloud’ technology suite powered by Salesforce including lead generation, marketing support, social media content, video production/distribution support and more. In addition, Berkshire Hathaway HomeServices provides global listing syndication, professional training and the exclusive Luxury Collection marketing program for premier listings.

© 2020 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

Berkshire Hathaway Specialty Insurance Expands Team in Spain

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance (BHSI) has announced two appointments in Spain, naming Alejandro Lovera as Head of Executive and Professional Lines and Silvia Sanchez as Head of Operations.

“We are pleased to continue to expand our team in Spain with these two highly experienced professionals. Alejandro will oversee our financial lines underwriting, bringing policies backed by BHSI’s stability and financial strength to customers in Spain, while Silvia will enhance our ability to provide excellent and efficient service,” said Ignacio Almazan, Country Manager, Spain, BHSI.

Alejandro has spent nearly 15 years in the commercial insurance industry, most of it specializing in financial lines. Before joining BHSI, he was Financial Lines Manager, Iberia & Portugal at Chubb European Group in Spain. He holds a law degree from the Universidad Complutense in Madrid.

Silvia comes to BHSI with 15 years of experience in operations, legal and compliance in the commercial insurance industry, most recently as Operations Director for RSA in Spain. Silvia holds a law degree from the Universidad Complutense in Madrid.

Alejandro and Silvia are based in BHSI’s office in Madrid.

© 2020 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
McLane

McLane Promotes Jeff Hayes to VP of Sales and Business Development of McLane Foodservice

(BRK.A), (BRK.B)

Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice solutions, announced that Jeff Hayes has been promoted to vice president of sales and business development of McLane Foodservice.

Hayes is responsible for leading the business development and customer relationship management of the entire McLane Foodservice portfolio of 33 leading restaurant brands. In this role, Hayes will ensure alignment with the needs of strategic partners and seek to enable the growth potential for McLane Foodservice and its customers.

“Jeff Hayes is a proven leader who values relationships and partnerships with our customers,” says Susan Adzick, executive vice president and chief operating officer of McLane Foodservice. “He is a strategic thinker who will continue to grow the McLane Foodservice brand, and he will champion the culture that remains at the core of our success.”

Hayes has been with McLane Foodservice for more than 26 years, holding various roles within the finance and national accounts teams. Most recently, he served as vice president of national accounts and was responsible for many collaborative relationships with strategic partners.

Prior to joining McLane Foodservice, Hayes held financial management roles in both the software and business network industries. He began his distribution career with PepsiCo Food Systems as part of the finance team, and he progressed through roles of increasing scope after transitioning to the national accounts team. Hayes holds an undergraduate degree in finance and MBA from the University of Louisville.

“It’s an exciting time to move into this role and to build upon all the great work the team has done in recent years,” says Hayes. “I believe McLane Foodservice is well-positioned to support the needs of our customers today, as well as be the strategic partner they expect in the future.”

© 2020 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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Minority Stock Positions Stock Portfolio

BYD Receives Record-Breaking Bus Order for Los Angeles

(BRK.A), (BRK.B)

Los Angeles mayor Eric Garcetti has announced that the Los Angeles Department of Transportation (LADOT) placed the largest single order for electric buses in U.S. history.

The order is for 134 BYD electric buses to be manufactured at BYD’s plant in Lancaster, California.

“The clean transportation revolution is not a distant dream — it’s happening on L.A.’s streets right now,” said Los Angeles Mayor Eric Garcetti, who spoke to dozens of LA reporters and city workers after quietly arriving at the Department of Transportation in a 30-foot battery-electric BYD K7M.

“Seeing these zero-emission buses rolling down our roads in the years ahead will bring us one step closer to realizing our vision of cleaner air, lower emissions, healthier communities, and a more sustainable future for all Angelenos,” Garcetti said as he stood in front of two of the four BYD buses that have already been delivered to the city. In all, Los Angeles will have 134 BYD buses, Garcetti said.

The record-breaking order helps advance the core goals of Mayor Garcetti’s recently signed Executive Directive — “L.A.’s Green New Deal: Leading By Example” — which includes measures to make LADOT’s bus fleet entirely emissions-free in time for the opening ceremonies of the 2028 Olympic and Paralympic Games.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value almost ten-fold, and is now worth roughly $1.96 billion.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2020 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
Financials

Berkshire Hathaway Operating Results For Q4 2019 & Full Year 2019

(BRK.A), (BRK.B)

Berkshire’s operating results for the fourth quarter and full year of 2019 and 2018 are summarized in the following paragraphs. However, we urge investors and reporters to read our 2019 Annual Report, which has been posted at www.berkshirehathaway.comThe limited information that follows in this press release is not adequate for making an informed investment judgment.

Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the fourth quarter and full year of 2019 and 2018 are summarized below. Earnings are stated on an after-tax basis. (Dollar amounts are in millions, except for per share amounts).

Fourth Quarter

Full Year

2019

2018

2019

2018

Net earnings (loss) attributable to Berkshire shareholders

$

29,159

$

(25,392

)

$

81,417

$

4,021

Net earnings (loss) includes:

Investment and derivative gains (losses) –

Investments (1)

$

24,527

$

(27,613

)

$

56,272

$

(17,500

)

Derivatives

212

(476

)

1,173

(237

)

Impairment of intangible assets (2)

(3,023

)

(3,023

)

Operating earnings

4,420

5,720

23,972

24,781

Net earnings (loss) attributable to Berkshire shareholders

$

29,159

$

(25,392

)

$

81,417

$

4,021

Net earnings per average equivalent Class A Share

$

17,909

$

(15,467

)

$

49,828

$

2,446

Net earnings per average equivalent Class B Share

$

11.94

$

(10.31

)

$

33.22

$

1.63

Average equivalent Class A shares outstanding

1,628,138

1,641,648

1,633,946

1,643,795

Average equivalent Class B shares outstanding

2,442,207,505

2,462,471,575

2,450,919,020

2,465,692,368

(1) Due to a change in Generally Accepted Accounting Principles (“GAAP”) in 2018, we are required to include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our earnings statements. In the table above, investment gains/losses in 2019 include gains of approximately $23.6 billion in the fourth quarter and approximately $53.7 billion for the full year and in 2018 include losses of approximately $28.1 billion in the fourth quarter and approximately $20.6 billion for the full year due to changes during the fourth quarter and for the full year in the unrealized gains that existed in our equity security investment holdings. Investment gains/losses also include after-tax realized gains on sales of investments of approximately $1.0 billion and $0.8 billion during the fourth quarters of 2019 and 2018, respectively, and gains of approximately $2.6 billion and $3.1 billion for the full year of 2019 and 2018, respectively.

The amount of investment gains/losses in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules.

(2) Attributable primarily to Berkshire’s equity interest in Kraft Heinz. The comparable amount in 2019 is approximately $435 million and it is included in operating earnings.

An analysis of Berkshire’s operating earnings follows (dollar amounts are in millions).

Fourth Quarter

Full Year

2019

2018

2019

2018

Insurance-underwriting

$

(857

)

$

(225

)

$

325

$

1,566

Insurance-investment income

1,443

1,161

5,530

4,554

Railroad, utilities and energy

1,874

1,736

8,321

7,840

Other businesses

2,230

2,339

9,372

9,364

Other

(270

)

709

424

1,457

Operating earnings

$

4,420

$

5,720

$

23,972

$

24,781

At December 31, 2019, insurance float (the net liabilities we assume under insurance contracts) was approximately $129 billion at December 31, 2019, an increase of $6 billion since yearend 2018.

Use of Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures. The reconciliations of such measures to the most comparable GAAP figures in accordance with Regulation G are included herein.

Berkshire presents its results in the way it believes will be most meaningful and useful, as well as most transparent, to the investing public and others who use Berkshire’s financial information. That presentation includes the use of certain non-GAAP financial measures. In addition to the GAAP presentations of net earnings, Berkshire shows operating earnings defined as net earnings exclusive of investment and derivative gains/losses.

Although the investment of insurance and reinsurance premiums to generate investment income and investment gains or losses is an integral part of Berkshire’s operations, the generation of investment gains or losses is independent of the insurance underwriting process. Moreover, as previously described, under applicable GAAP accounting requirements, we are now required to include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our periodic earnings statements. In sum, investment gains/losses for any particular period are not indicative of quarterly business performance.

About Berkshire

Berkshire Hathaway and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.

Cautionary Statement

Certain statements contained in this press release are “forward looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guaranties of future performance and actual results may differ materially from those forecasted.

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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Minority Stock Positions Stock Portfolio

BYD Buses to Make West London’s Route 94 Fully Electric

(BRK.A), (BRK.B)

BYD Europe and Alexander Dennis Limited (ADL) have jointly announced that one of West London’s best-known bus services, route 94, is going fully electric with the delivery of 29 pure electric, 100% emissions-free BYD ADL Enviro400EV double decks.

The vehicles go into service this week with operator London United – a subsidiary of RATP Dev. BYD is a global leader in batteries, energy management and electric mobility, while ADL, the UK’s best-selling bus manufacturer, is a subsidiary of leading independent global bus manufacturer NFI Group Inc. (NFI).

Route 94 provides a 24-hour service for West London residents, from Acton Green to Piccadilly Circus via Westfield, Notting Hill and Oxford Street. With an overall 67-seat capacity (24 in lower saloon, 43 in upper saloon), the 10.9-metre BYD ADL Enviro400EV achieves up to 160 miles on a single charge.

Power is delivered through BYD’s pure-electric drivetrain comprising the electric motor and 382 kWh Iron-Phosphate batteries. Double deck bodywork from ADL features a striking glazed staircase, long wheelchair bay and an automatic wheelchair ramp at the rear doors.

This latest delivery from the BYD ADL Partnerships sees the total number of its electric buses in service climb to 269, including 200 BYD ADL Enviro200EV single decks. The new vehicle are also fitted with the new Acoustic Vehicle Alerting System which generates sound at speeds below 12mph to alert pedestrians and vulnerable road users.

Speaking at a launch event, Catherine Chardon, Managing Director of RATP Dev London, said, “These new buses will support TfL and London’s strategy for a greener city. It is the second step in our garage network electrification strategy”. Mehdi Sinaceur, Chairman of RATP Dev UK at RATP Dev, added, “Electrification is one of the key transformations that RATP Dev is helping our London companies with, leveraging our Group experience”.

“Today, we have 234 BYD ADL electric buses operating in the capital – we’re delivering a cleaner London,” said Frank Thorpe, Managing Director at BYD (UK), “RATP Dev is one of the city’s main Transport for London operators, and a 29-vehicle delivery is not only a ringing endorsement for emissions-free mobility for the people of London, but also for the BYD ADL partnership and its combination of world-renowned electro-mobility technology and British manufacturing ingenuity.”

ADL Chief Executive, Colin Robertson, said: “RATP Dev’s route 94 is the second double decker route in London to go electric with the BYD ADL Enviro400EV, with more to follow this year. Red double decker buses keep London moving, and having already supplied hybrid buses to the capital since 2008, ADL is delighted to be a leading partner in their transformation to zero emissions.”

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value almost ten-fold, and is now worth roughly $1.96 billion.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2020 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.