Berkshire Hathaway Specialty Insurance (BHSI) has appointed Pedro Mairos as Head of Marine, and Sean Mannion as Head of Property, for the UK and Ireland.
“With Pedro and Sean leading our teams, we are bringing to market marine and property solutions built with deep local expertise, and grounded in stellar financial strength and claims service,” said Chris Colahan, Head of UK and Europe, BHSI. “Our new line of flexible marine products marks an important advance in providing broad, multi-line solutions for customers and brokers in the UK and Ireland.”
Pedro comes to BHSI with nearly two decades working in marine insurance around the globe. He was most recently UK Deputy Chief Underwriting Officer and Head of Marine Cargo Underwriting, UK Branch, at AXA Corporate Solutions. He also held marine insurance roles at Axa in Paris, Hong Kong and Dubai.
Sean takes the reins as Head of Property, UK and Ireland, with more than 35 years of industry experience. He was most recently Head of Property & Energy Lines, Commercial Insurance UK, at Zurich. Prior to that he was Senior Vice President and Global Property Executive at AIG UK. Sean is a Fellow of the Chartered Insurance Institute.
Pedro and Sean are based in BHSI’s office in London.
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.
Kraft Heinz’s Springboard, a brand innovation platform launched by the company in 2016 to nurture, scale, and accelerate growth of disruptive brands, has announced its second Incubator Program class.
The program was created to help nurture and develop the next generation of food & beverage brands, while staying close to entrepreneurs, new ideas and consumer trends.
The second Incubator class continues the vision and includes Blake’s Seed Based, BRAMI, Ka-Pop! Ancient inGRAINed Snack Co™, Origin Almond®, and Tiny Giants.
All Incubator teams fall strongly within at least one of the Springboard committed growth pillars: Natural & Organic, Specialty & Craft, Health & Performance, and Experiential brands. Over the course of the next 16 weeks, the selected startups will participate in a dynamic program composed of learning, funding, infrastructure access, and mentorship in Chicago, IL.
Springboard is also announcing the application period for the third incubator class is open now until June 14th for the fall program which will take place August 5th through November 22nd.
Keep an eye out for:
Growing up with a deathly nut-allergy, Founder, Blake Sorensen, was frustrated with the lack of allergen-free snack options on the market. So, he began to make bars in his kitchen, using seeds instead of nuts. Blake quickly realized people with and without food allergies enjoyed them. Blake’s Seed Based mission is to make seed based, Top 8 Allergen-Free snacks accessible to everyone. Blake’s Seed Based products are not only delicious and safe for most eat, but they also donate a bar to a school in need for every box purchased. All great reasons to try Blake’s today!
https://www.blakesseedbased.com/
In their Brooklyn test-kitchen, BRAMI reimagined lupini beans, a fresh legume snack beloved in the Mediterranean since Ancient Roman times. BRAMI beans are packed with plant protein and fiber with a fraction of the calories, carbs, fat and sugar of other snacks, so you can satisfy your hunger without compromising your diet. Marinated and packaged fresh out of the pickling barrel, BRAMI offers one of the few shelf-stable snacks that isn’t baked, dried or fried, and something totally differentiated to the growing functional snack category.
https://bramisnacks.com/
Ka-Pop! Ancient inGRAINed Snack Co™ has the mission to always be tasty, nutritious, and satisfying. Founder, Dustin, was tired of compromising taste for boring, empty, better for you snacks, so he created his own. Ka-Pop! is delicious and powered by ancient grains to bring fun and nutrition together. Ka-pop! wants you to save your snack time from boring “good for you” snacks that don’t deliver on taste and to replace those empty calories with protein, fiber, omega-3s, potassium, and vitamins. Take that regular snacks, and try Ka-Pop!
https://kapopsnacks.com/
Origin Almond® believes the first step to better health is the reduction of excess sugars, especially the hidden sugars found in perceived healthy foods such as fruit juices. Founder, Jake Deleon, had a unique solution: Juice almonds instead of sugary fruits! Origin Almond® uses cold-press technology to extract the liquid essence of almonds. This Cold-Pressed Almond Juice offers the fresh & lightly sweetened taste of premium fruit juices minus the excess sugar & carbs. Each flavor contains as low as 1g of sugar per bottle and is infused with a rainbow of superfoods and adaptogens to provide added functional benefits. Love juice again with Origin Almond® and see why almonds make for better juice! Origin Almond® is a certified Minority Business Enterprise (MBE).
https://www.originalmond.com/
Danielle Calabrese, mom of two and CPG entrepreneur, enlisted help from friend and Chef, Gregg Drusinsky to create a delicious and sustainable plant based snack brand for future-forward kids and parents. Together, they built a fun and empowering brand to fuel the superheroes of tomorrow. Their first product is a plant based yogurt that is certified organic and non GMO with no added sweeteners. Tiny Giants believes that healthy bellies equals happy kids and they are on a mission to change the way kids snack.
https://tinygiantsfood.com/#shopify-section-1534600654784
“We had an incredibly competitive group of applicants. All five companies in our second Incubator class offer delicious products that cater to the better-for-you offerings consumers are demanding,” said Kelly Reinke, Springboard Incubator Lead. “Springboard exists to help shape the future of food, and we are confident our next class does just that.”
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.
China’s BYD, a world leader and pioneer in battery and zero-emission vehicles, has proposed building its SkyRail monorail to ease congestion in one of Los Angeles’s busiest and most congested freeway corridors.
Is this the one proposal that could save Los Angeles billions in construction costs and shave decades off the construction timeline? It just may be.
It’s not just speculation. The idea is already under consideration. BYD’s SkyRail proposal is one of LA Metro’s four new refined concepts for the Sepulveda Transit Corridor.
The goal is to create a high-capacity transit line between the San Fernando Valley and the Westside through the Sepulveda Pass that would move some 100,000 people a day off the I-405 Freeway, which is already ranked as one of the most traveled urban highways in the nation.
According to LA Metro, over 400,000 people currently travel through this area every day to commute to work, school, and other destinations along the freeway and beyond.
LA Metro’s four concepts include three standard rail projects, similar to its current Red Line subway, and would either be underground or a combination of underground and above ground, and BYD’s SkyRail Monorail.
The Sepulveda Transit Corridor project would link San Fernando Valley and LAX, including connections to existing and planned Metro bus and rail lines, including the Orange, Purple, and Expo Lines, and is part of the Measure M expenditure plan, with approximately $5.7 billion for new transit service to connect the San Fernando Valley and the Westside, which is scheduled to open by 2035.
Passed in November 2016, Measure M is a voter approved countywide half-cent sales tax increase, which funds a $120 billion mass transit expansion plan.
Approximately $3.8 billion is already allocated to extend that service from the Westside to LAX with a 2057 opening date.
The Elephant in the Room
With public transit, the two biggest factors are always cost and time of construction. Certainly the biggest factor in LA’s case is cost. The standard heavy rail projects would cost tens of billions.
For example, LA’s currently under construction 9-mile Purple extension of the underground rail system that runs from the current Wilshire/Western station is budgeted at $8.2 billion and will take to decades to build.
The project broke ground in November 2014 and is not scheduled to be fully completed until 2035.
However, unlike a subway, BYD is proposing to build its SKY Rail monorail, which would run in a corridor down the middle of the I-405 freeway, saving billions in tunneling costs and environmental concerns.
SkyRail would be a fully integrated, driverless, state-of-the-art straddle type monorail that is far advanced from the monorails people are familiar with at theme parks such as Disney World and Disneyland.
Most importantly, BYD notes that its SkyRail is only one fifth the cost of a subway, and using BYD’s prefabricated track beams can in some cases mean a construction schedule as short as 2 years. That’s not to say LA’s system would be built that fast, but it certainly wouldn’t take decades.
As a public transit alternative to subways, BYD’s SkyRail delivers numerous benefits, including: capital expenditure 80% lower than subways, a construction period two-thirds shorter than subways, excellent topographic adaptability due to higher climbing ability and smaller turning radius, reduced noise to allow travel through architectural complexes, visual integration into the cityscape thanks to transparent bridges and independent right of way, flexible management to allow for capacity between 10,000 to 30,000 passengers an hour (each way) and a high speed of up to 80km/h.
The company notes that SkyRail is an effective complement to large cities’ subway networks, and BYD already has construction contracts in China for Shenzhen, Shantou, Xi’an, Bengbu, Guang’an, Jilin, Tianjin, and others.
Not Just a Concept
BYD put its first SkyRail in service in 2016 with a 5.4-kilometer trial line that connects BYD’s headquarters in Shenzhen with a nearby high-speed railway station.
BYD has landed contracts to build SkyRails outside of China, as well.
BYD is set to construct its first Latin American monorail in the Brazilian city of Salvador. Construction will commence in 2019 with the goal of being operational by 2021.
Like the LA proposal, the system will integrate with other mass transit. Salvador’s SkyRail will move a projected 15,000 passengers a day, connecting them to the public metro network that currently serves over 2.9 million people.
Will SkyRail be the choice of LA Metro? We will know more in roughly six months, as the 20-month study is expected to conclude by fall 2019.
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.
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.
Todd Combs and Ted Weschler, the former hedge fund managers that Warren Buffett hired to manage a portion of Berkshire Hathaway’s stock portfolios, have continued to see their portfolios grow.
Combs was hired in 2010, and Weschler was hired in 2011, and each was initially given a billion dollar portfolio to separately manage. Over the past five years, Buffett has increased their portfolios as he has grown confident in their abilities. The portfolios have now reached $13 billion each, according to Buffett’s recent comment on CNBC.
Berkshire’s total stock holdings total a whopping $183 billion, according to its most recent 13-F filing.
As Warren Buffett’s handpicked protégés, Buffett has praised their success, noting that “They have made Berkshire billions already that we wouldn’t have otherwise made,” he said on CNBC in 2014. “They both have a fundamental combination of soundness and brilliance.”
While Buffett notes that this past year “Overall, they are a tiny bit behind the S&P, each, by almost the same margin,” Buffett acknowledged to Becky Quick on CNBC’s “Squawk Box” that they were still doing better than he was.
More than Just Portfolio Managers
In addition to portfolio management, Combs sits on the Boards of companies that Berkshire holds sizable stakes in. Combs is on the Board of JPMorgan Chase & Co., and Paytm, and he also is playing a key role in the Amazon, Berkshire Hathaway and J.P. Morgan Chase healthcare joint venture, having been charged with finding the project’s CEO.
It was also Combs’s belief in aerospace manufacturer Precision Castparts that directly led to Buffett’s $32 billion acquisition of the company.
“You have to give Todd Combs credit for the deal,” Buffett said, noting that he had never heard of the company before Combs brought it to his attention. ”Todd told me a lot about it, and over the last few years I have become familiar with it,” he added.
Another winner was Combs and Weschler’s positions in DirecTV in 2014. The satellite broadcaster’s acquisition by AT&T brought an over $3 billion windfall for Berkshire, as its 4.5 million shares were purchased at roughly half the tender price of $95 per share offered by AT&T.
When the day come that the entire Berkshire portfolio is in Todd Combs and Ted Weschler’s hands, Berkshire’s shareholders will be able to sleep well at night knowing it is well-managed.
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.
Berkshire Hathaway Insurance Group has announced that Berkshire Hathaway European Insurance DAC (BHEI) has been granted a Certificate of Authorization by the Central Bank of Ireland to operate as an insurer in Ireland and the European Economic Area (EEA).
Incorporated in the Republic of Ireland and based in Dublin, BHEI will operate as a Designated Activity Company, providing service to the company’s customers and brokers in Ireland and, using European freedom of services rights, across the EEA.
BHEI will be the insurance company utilized by a number of Berkshire Hathaway’s insurance brands operating in the EEA, including Berkshire Hathaway Specialty Insurance, MedPro, and Faraday.
Where necessary or required, EEA business previously transacted through BHEI’s UK based direct parent Berkshire Hathaway International Insurance Limited (BHIIL) will be transferred from BHIIL to BHEI, in accordance with applicable law, to achieve a smooth transition for its customers and brokers upon the UK leaving the European Union. BHIIL, however, will continue to operate its significant general insurance business in the UK market and overseas under its existing licenses. BHEI intends to commence writing business by the end of March 2019.
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.
Berkshire Hathaway HomeServices, part of the HSF Affiliates LLC family of real estate brokerage franchise networks, has announced that a top-producing real estate team from Keller Williams Realty Tacoma, has joined its network and formed a brokerage. The team now operates as Berkshire Hathaway HomeServices South Sound Properties, specializing in new-home sales.
South Sound Properties, which represents homebuilders in Pierce and Thurston counties, is owned and operated by Gary and Pam Hendrickson. The brokerage joins one of America’s fastest-growing real estate brokerage networks now counting nearly 50,000 agents and 1,450+ offices in just over five years as a brand.
Berkshire Hathaway HomeServices Chairman Gino Blefari welcomed South Sound Properties to the brand.
“This company is by no means a startup operation,” said Blefari. “Gary is so well respected among local homebuilders and the team he and Pam have assembled brings a wonderful mix of experience, skill, diversity and enthusiasm. Their success in new-home sales and the trust they’ve established among builders and real estate consumers will keep South Sound Properties growing for years.”
“We wanted to form our own brokerage for some time and considered many brand options,” said Gary Hendrickson. “We chose Berkshire Hathaway HomeServices for its name appeal and lineage, and for its philosophy on growth. The brand chooses network members who want to grow, and it supports them with top-quality tools and resources. South Sound Properties is ready to grow from the start.”
With a new-home sales dream team in place, Gary Hendrickson said he will build an existing-home sales operation by recruiting top, local agents. Broker Michael Dattilo, with extensive experience in new- and existing-home sales, has already joined the brokerage.
As part of their network membership, South Sound Properties agents gain access to Berkshire Hathaway HomeServices’ Global Network Platform, a powerful tool suite driving lead generation, marketing support, social media, video production/distribution and more. In addition, the network provides global listing syndication, relocation referrals, professional education and the exclusive Luxury Collection marketing program for high-end listings.
South Sound Properties also joins Berkshire Hathaway HomeServices’ active client-referral and relocation networks.
“Fellow network members operate across America and in Berlin, Germany; London, England; Milan, Italy and other regions,” said Pam Hendrickson. “We look forward to additional business through these channels and for the global exposure our listings will receive through our network and its listing-syndication programs.”
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.
BYD (Build Your Dreams), a world leader and pioneer in battery and zero-emission vehicles, has announced that its year-on-year electric car sales rose almost 300% for the month of January 2019 over January 2018.
BYD’s official number is 292%.
The company sold 28,005 electric cars in China in January, which is its third highest month ever.
The robust sales are in great part due to the continued success of its BYD Yuan, which set its eighth consecutive month of record sales with 10,093 vehicles.
The Yuan ranks #1 in the plug-in electric car segment in China.
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.
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.
GEICO’s regional offices in Macon, Georgia, are hiring hundreds of employees. They have immediate openings for Emergency Roadside Service Representatives, Title Processing Specialists, Claims Service Representatives and Customer Service Representatives; all four positions have a starting salary of at least $15 an hour. Training is provided and no prior insurance experience is necessary.
Full-time associates are offered the wide-ranging Total Rewards Program, which includes a comprehensive benefits package, college tuition reimbursement and health and wellness incentives. GEICO provides a friendly work environment that supports career growth and development.
“More than 6,700 members of the Middle Georgia community are already a part of our GEICO family,” said Regional Vice President Franklin Silva. “We are proud to invite even more area residents to join GEICO and help us continue to offer the top-notch customer experience that we are known for.”
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.
Berkshire Hathaway HomeServices Indiana Realty, one of the state’s market share leaders for real estate transactions and sales volume, set a company production record by generating $1.05 billion in sales volume in 2018 on nearly 5,200 transactions.
The brokerage crossed the billion-dollar threshold for the first time and its CEO anticipates another strong year across the board for real estate in Indiana.
“2018 was a banner year for our team,” said Craig West, Indiana Realty CEO. “The market grew in response to favorable market conditions and our team stepped up to serve a significant amount of the business in Central and Southern Indiana. We’re proud of the work and prouder to have nearly 5,200 satisfied homebuyers and sellers.”
Indiana Realty’s sale volume rose 7% over 2017 totals. The brokerage’s average sales price at $202,748 rose 9.4% over the previous year and was 8.3% ahead of the state’s average sales price in 2018. “Our sales professionals work hard for their clients and achieve top dollar for their listings,” West said.
Indiana will likely see another strong year for real estate sales, West explained. The state’s economy will grow at about a 3% clip this year, according to the Kelley School of Business at University of Indiana, and job growth will be strong. “Jobs in the Indy Metro area grew 21% in 2018 and based on the percolating economy, I don’t see that slowing down. These are the fundamentals of another solid year for real estate.”
West said Indiana home sales were hampered in 2018 by a general lack of re-sale inventory in the state. “Demand outstripping supply,” he said. Yet with new-home sales driving the local market, particularly around the Indy Metro region, West believes more re-sale homes will come to market in 2019, easing the inventory challenges.
“Most people buying new homes have a home to sell,” West said. “With more homes coming to market this year there will be less upward pressure on home prices across the state, so I predict a leveling off of home prices in 2019. Greater balance in the market is good for everyone.”
Mortgage rates, which backed off recent highs established in the second half of 2018, should remain below 5% for a 30-year conforming mortgage, West added. “This should help many homebuyers.”
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.