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Berkshire Hathaway Specialty Insurance

Berkshire Hathaway Specialty Insurance Enters Surety Market in Spain

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance (BHSI) has entered the surety market in Spain and appointed Jesús Barbero to lead the product line as Head of Surety.

“We are excited to lead BHSI’s entry into the European surety market,” said Constanza Gállegos, Country Manager, BHSI in Spain. “By bringing BHSI’s long-view commitment, credit rating and financial strength to the surety market in Spain, we are answering an expressed need of our customers and brokers.”

BHSI will build and provide different surety solutions for a variety of projects and risks in Spain.

Jesús has more than 20 years of experience specializing in surety bonds. Jesús most recently spent 15 years leading surety at another major insurer. He is based in Madrid.

© 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.

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Jazwares

Jazwares and Sony Bring Cobra Kai to the Roblox Gaming Experience

(BRK.A), (BRK.B)

Berkshire Hathaway’s Jazwares, a leading global toy company and renowned game studio, has partnered with Sony Pictures Consumer Products to launch the official Cobra Kai: Karate Legends gaming experience on Roblox.

Timed to coincide with the season six release of Cobra Kai on Netflix this summer, Cobra Kai: Karate Legends on Roblox allows players to build and level up their own dojo, training to become the best karate sensei. Players can explore a vast open map set in Cobra Kai’s San Fernando Valley, complete missions to recruit characters from the show, learn epic karate moves, and challenge others in tournaments. The game aims to capture the thrilling action and martial arts of the series.

Judd Karofsky, Executive Vice President at Jazwares, expressed excitement about the project, stating, “Jazwares Game Studio has a proven track record of bringing some of the world’s biggest entertainment franchises to life on Roblox, and we’re thrilled Cobra Kai: Karate Legends is joining the ranks. We’re huge Cobra Kai fans and have focused on creating an authentic experience that captures the heart-pounding action of the series.”

Cobra Kai: Karate Legends, developed by Jazwares Game Studio, will also offer players the chance to purchase virtual merchandise to customize their Roblox avatars. For added excitement, the Cobra Kai Johnny Lawrence figure, available for a limited time at Target stores, includes a virtual code for an exclusive in-game item.

Stacey Kerr, SVP of Worldwide Licensing at Sony Pictures Entertainment, remarked, “We’re looking forward to working with Jazwares Game Studio to bring the Cobra Kai universe to a new generation of fans. This collaboration helps us deliver an immersive gaming experience that will excite fans for the upcoming season.”

All six seasons of Cobra Kai are now streaming on Netflix, with the sixth and final season having premiered on July 18.

© 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.

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Lessons From Warren Buffett

Lessons from Warren Buffett: Embracing Market Volatility

When stocks experience sharp declines, news outlets often criticize the resulting market volatility. However, Warren Buffett views volatility as a significant advantage for investors.

“Volatility is a huge plus to the real investor,” Buffett remarked at the 1997 Berkshire Hathaway Annual Meeting. He referenced Ben Graham’s concept of “Mr. Market,” where the stock market is likened to an obliging partner who daily offers to buy or sell shares at a fluctuating price. In a private business, such daily buy-sell offers are unheard of, but the stock market provides this unique opportunity.

Buffett explained that this partner, “Mr. Market,” is akin to a “heavy-drinking manic depressive.” The more unpredictable and erratic the market behaves, the greater the chances for investors to profit from mispriced stocks. For those not on margin, volatility is a welcome phenomenon, presenting numerous opportunities for smart investments.

Buffett’s full explanation on volatility

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.

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NetJets

NetJets Expands Real Estate Footprint with New Facility at Teterboro Airport

(BRK.A), (BRK.B)

NetJets, a global leader in private aviation and a subsidiary of Berkshire Hathaway, is expanding its real estate footprint with over a dozen projects across the United States. Key markets for these new investments include the New York tri-state area and Arizona.

This expansion includes the development of both existing and new facilities, such as NetJets Service Hubs™, to provide Owners with a personalized brand experience and seamless access to their aircraft.

NetJets has long held the largest market share of flight volume in New York. Recognizing the importance of this location, the company plans to renovate and rebrand its primary fixed-base operator (FBO) at Teterboro Airport in New Jersey. In collaboration with Signature Aviation, the enhanced space will be accessible exclusively to NetJets Owners. The new facility will feature a private ramp and hangar space, an Owner lounge, VIP conference rooms, a refreshment station, dedicated parking, and other amenities to ensure smooth arrivals and departures starting in 2025.

This summer, NetJets will also open an exclusive-use Service Hub in Scottsdale, Arizona. This marks the company’s first new-build Service Hub, operated in partnership with Jet Aviation. The Scottsdale hub will offer proactive aircraft maintenance, VIP conference rooms, a private lobby, an outdoor patio with mountain views, vehicular ramp access, and covered parking. Additionally, NetJets plans to break ground on a new facility in Las Vegas this year, set to open in 2027. The two-hangar Las Vegas FBO will include a dedicated terminal, lobby, and parking. Other projects are underway in Eagle, CO; Atlanta, GA; Bedford, MA; Austin, TX; and Dallas, TX.

“We are proud to announce our latest investments to grow our real estate footprint with renovated FBOs and NetJets Service Hubs in key markets,” said Patrick Gallagher, President of Sales, Marketing, and Service at NetJets. “By introducing new Service Hubs in the West, strengthening our partnerships with FBOs, and offering an exclusive facility at Teterboro, we continue to help our Owners reach across the country with ease.”

© 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.

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Mouser Electronics

Mouser Awarded the Electronics Division Distributor Partnership Award from Eaton

(BRK.A), (BRK.B)

Berkshire Hathaway’s Mouser Electronics, Inc., a leading global distributor of the latest electronic components and industrial automation products, has received the 2023 Electronics Division Distributor Partnership Award for the Americas from Eaton, a prominent global manufacturer of power management solutions. This award recognizes Mouser’s exceptional partnership with Eaton.

“Eaton is proud to present Mouser with our 2023 Partnership Award,” said John Janis, VP and General Manager of the Electronics Division at Eaton. “Mouser has earned this award through their unyielding commitment to collaboration and promoting innovative solutions to our joint customers. With the rapid expansion of Eaton’s product portfolio, we look forward to another successful year with Mouser.”

“We are incredibly honored to receive this prestigious award and thank Eaton for recognizing the outstanding efforts of our team,” said Tom Busher, Mouser Vice President of Supplier Management. “Eaton is an industry leader and a valued business partner. We look forward to our continued mutual success.”

© 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.

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Lessons From Warren Buffett

Lessons from Warren Buffett: Don’t Bet on Turnaround Stories

When seeking promising investment opportunities, it’s wise not to rely on once-great companies that have since faltered, advises Warren Buffett. The legendary investor emphasizes that it is extremely rare for a company to regain its competitive edge once it has been lost.

Buffett illustrated this point at the 2003 Berkshire Hathaway Annual Meeting, stating, “In terms of competitive advantage and then regain — lost and then regained — there aren’t many examples of that.” He shared an anecdote about a friend who repeatedly invests in struggling companies with hopes of turning them around. Buffett’s response to such optimism is a simple but pointed question: “Where in the last hundred years have you seen it happen?”

In essence, Buffett’s advice underscores the importance of focusing on companies that currently possess strong competitive advantages, rather than hoping for a turnaround in those that have lost their way.

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.

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Berkshire Hathaway Specialty Insurance

Berkshire Hathaway Specialty Insurance Expands into Nordic Market

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance (BHSI) has expanded its reach into the Nordic countries with the opening of a new office in Stockholm. The company has appointed Anna Green as Head of Nordics, Karin Bryner as Head of Executive & Professional Lines, and Anton Holmgren as Head of General Property for the region.

Andreas Krause, Head of DACH at BHSI, highlighted the significance of this expansion as a continuation of BHSI’s global growth. “We will continue to expand our local team and capabilities, and look forward to bringing the certainty of BHSI’s financial strength, underwriting acumen, and ‘CLAIMS IS OUR PRODUCT’ philosophy to customers and distribution partners throughout Sweden, Denmark, Norway, and Finland,” he said.

Effective immediately, BHSI’s Nordic office is underwriting Executive & Professional Lines, General Property, Energy, and Construction.

Anna Green, with over 20 years of industry experience spanning the Nordics, Europe, the UK, and the Asia Pacific region, expressed enthusiasm about the launch. “We look forward to building a strong team in the Nordics and bringing BHSI’s commitment to excellent technical underwriting and highly responsive service to the market. We have already had great response from brokers and customers,” she said.

Green was most recently the CEO of the Sweden Branch of another global insurer and has deep expertise in Specialty and Environmental underwriting. She is based in Stockholm.

© 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.

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BYD

BYD Announces Plans for Vehicle Plant in Turkey

(BRK.A), (BRK.B)

Berkshire Hathaway-backed BYD, China’s largest electric vehicle manufacturer, is set to build a vehicle manufacturing plant in Turkey. This strategic move aims to avoid the increasing EU tariffs on vehicles imported directly from China.

The new facility, expected to be operational by the end of 2026, will have an annual production capacity of up to 150,000 vehicles and will create approximately 5,000 jobs. This follows BYD’s recent inauguration of a plant in Rayong, Thailand, which was completed in just 16 months.

BYD’s global expansion is rapidly progressing. The company recently celebrated the production of its 8 millionth new energy vehicle. In 2023, BYD achieved a 337% year-on-year increase in exports, reaching a total of 243,000 vehicles. In the first half of this year alone, BYD sold 1.607 million new energy vehicles worldwide, marking a 28% year-on-year growth, with over 203,000 of these vehicles being exported, a 173.8% year-on-year increase.

BYD’s new energy vehicles are now available in 88 countries and regions. The company has established passenger car production bases in Thailand, Brazil, Hungary, and Uzbekistan, with plans for another in Mexico.

© 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.

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BYD

BYD Celebrates 8 Million NEV Milestone and Thailand Expansion

On July 4, Chinese automaker BYD, backed by Berkshire Hathaway, achieved two significant milestones. The company inaugurated its Thailand plant in Rayong and produced its 8 millionth new energy vehicle.

BYD completed its Thailand plant in an impressive 16 months. With an annual capacity of 150,000 vehicles, the facility covers stamping, painting, welding, final assembly, and car component production. This ambitious project is expected to create 10,000 jobs. Notably, BYD unveiled the Dolphin model as its 8 millionth new energy vehicle during the inauguration.

BYD’s success in Thailand is remarkable. For eighteen months within the past two years, it has held the title of pure electric vehicle sales champion. Currently, one out of every three electric vehicles sold in Thailand bears the BYD brand. Looking ahead, BYD plans to introduce more pure electric and plug-in hybrid models in the Thai market.

Global Leadership in New Energy Vehicles

BYD’s global expansion is evident. In 2023, the company achieved a staggering 337% year-on-year increase in exports, totaling 243,000 vehicles. During the first half of this year, BYD sold 1.607 million new energy vehicles worldwide—a 28% year-on-year growth. Impressively, over 203,000 of these vehicles were exported, reflecting a remarkable 173.8% year-on-year increase.

BYD’s new energy vehicles are now available in 88 countries and regions. The company has established passenger car production bases not only in Thailand but also in Brazil, Hungary, and Uzbekistan.

As an industry leader in new energy vehicles, BYD continues to drive innovation and sustainable transportation on a global scale.

© 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.

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Lessons From Warren Buffett

Lessons From Warren Buffett: Don’t Be a Mortician Waiting for the Market to Get Sick

When you’ve identified a great company that promises significant growth and returns over the next 20-30 years, the temptation to wait for a price decline before adding it to your portfolio can be strong. However, is this the best strategy?

Warren Buffett addressed this very question at the 1996 Berkshire Hathaway Annual Meeting. “I think it’s better just to own them,” he advised. He likened the strategy of waiting for a market panic to buy a great company to a mortician waiting for a flu epidemic, implying that such an approach may not be very effective.

Buffett’s insight suggests that when you find a high-quality company, it’s generally better to invest in it rather than waiting for a potential price drop. However, this doesn’t mean you should buy at any price. Buffett himself cautions against purchasing stocks at “egregious prices.” Therefore, while it’s important not to delay your investment unnecessarily, it’s equally crucial to ensure that the price you’re paying is reasonable relative to the company’s value.

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.