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Pilot Flying J

Pilot Flying J Expanding

(BRK.A), (BRK.B)

One of Berkshire Hathaway’s newest acquisitions, travel center company Pilot Flying J, is adding locations.

The company will be opening three new locations in Arizona, Florida and Texas.

The new Pilot Flying J store in Tucson, Arizona, will feature nine truck parking spots, a Subway restaurant, four diesel fuel lanes, and in a nod to the emergence of electric cars, 10 Tesla charging stations.

The new Bartow, Florida, location will feature 38 truck parking spots, six diesel fuel lanes, three showers, and an Arby’s restaurant.

And the Pilot Flying J that will open in Odessa, Texas, will be the largest of all. The location will feature 93 truck parking spots, eight diesel fuel lanes, seven showers, and a Dunkin’ Donuts Express.

“We’re thrilled to serve the communities of Bartow, Odessa and Tucson with the expansion of our network this month to deliver convenience, quality, great service and added value to local residents and professional drivers traveling the nation’s highways,” Ken Parent, president of Pilot Flying J, said.

Pilot Flying J gives truck drivers access to 72,000 parking spaces at 750 Pilot and Flying J Travel Centers across North America.

In October 2017, Berkshire Hathaway made a $2.76 billion investment for a minority share in Pilot Travel Centers with the goal of becoming the majority owner in five years.

© 2018 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
Minority Stock Positions Stock Portfolio

BYD Plays Major Role in UK Energy Storage System

(BRK.A), (BRK.B)

BYD is in a lead role of supplying, operating and maintaining two energy storage systems for its key UK customer, Zenobé Energy Ltd. BYD supplied 49MW energy storage systems at Aylesford in Kent and Claredown in Essex to Zenobé.

“BYD’s focus on UK energy storage market started very early, around 4 years ago. We’ve so far contracted more than 350MW energy storage projects in this country alone, and are the No.1 battery storage system supplier in the UK.” said Bin Guo, BYD Energy Storage Global Director, “We think that the UK has a lot more potential and we will continue to provide first class support to visionary partners like Zenobé Energy to meet the growing demand of reliable and bankable energy storage solutions in the UK.”

The assets were utilized by National Grid’s Systems Operator (‘SO’) to supply 24MWh of energy within half an hour enabling the SO to move the frequency on the UK transmission system significantly.

Apart from being the largest energy storage owner and operator in the UK with 63MW of BYD batteries commissioned and operational, Zenobé is also the first owner-operator to raise senior debt on batteries from Santander Bank.

“The outstanding performance of this system proves that our decision of working closely with BYD is absolutely correct.” said Nicholas Beatty a Director and Founder of Zenobé Energy. “BYD was able to work with us and our other suppliers to deliver the system and commission the plants in record times of less than 6 months from signing of contracts.”

“Without doubt, the recent ASDP (Ancillary Services Dispatch Platform) dispatch of these assets by the SO demonstrates the speed of response of the batteries compared to traditional thermal generation equipment. It also evidences the flexibility batteries provide to the SO and other customers.” said Steven Meersman, a fellow Founder of Zenobé.

The UK SO has announced its plans to continue pushing the ASDP platform into the Short-Term Operational Reserve (STOR) market and replace the existing dispatch system with a “flexible, scalable and secure platform”. Over the next 5-10 years, the growing share of renewables will gradually increase the need for flexibility providers such as energy storage.

BYD has delivered nearly 150MW of energy storage projects in the UK to date. BYD’s 1.26MW/1.34MWh standard container energy storage products fit perfectly into the UK’s climate and power grid environment, along with the requirements for new energy power generation.

As the world leading energy storage solution provider, BYD is present in more than 200 cities around the world and was the number one global seller of new energy vehicles between 2015 and 2017.

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.

© 2018 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
Acquisitions Berkshire Hathaway HomeServices

Berkshire Hathaway HomeServices Florida Adds Charity & Weiss International Realty

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices Florida Realty has acquired Charity & Weiss International Realty, LLC, expanding into the Sarasota & Manatee Counties.

The expansion will allow the new company and affiliation to gain access to Berkshire Hathaway HomeServices’ Global Network Platform for lead generation, marketing support, video production and social media—along with access to listing distribution, relocation referrals, professional education and the Luxury Collection marketing program for high-end listings.

Charity & Weiss International Realty, LLC—founded in 2006 by Broker/Owners Gabriele Charity and Ruediger Weiss—specializes in international and domestic real estate, property management and commercial sales.

Charity and Weiss will stay on as team leaders of the group at Berkshire Hathaway HomeServices Florida Realty.

“Charity & Weiss and its sales professionals are perfect additions to our operations in the Sarasota/Manatee area,” said Rei L. Mesa, president and CEO of Berkshire Hathaway HomeServices Florida Realty, in a statement. “The firm is known for their strong leadership, exceptional customer service and a high level of professionalism. We’re proud to welcome Gabi, Rudi and their dedicated team to our Family of Services.”

“We are excited to have the professional and well-respected, multi-lingual Charity & Weiss team join our company and to continue their long-standing tradition of growth with exceptional service—now coupled with our brand, tools and global resources,” remarked Elaine Glandon, regional vice president of Berkshire Hathaway HomeServices Florida Realty.

“We view our network membership as an investment in our sales professionals,” said Charity. “These resources alone will help our sales professionals take their businesses and service to new heights. Ultimately, that’s great news for real estate consumers throughout the region.”

“Berkshire Hathaway HomeServices Florida Realty’s core values, active global expansion, vision and technology platform are an excellent match for our team. We believe that the Berkshire Hathaway HomeServices Florida Realty brand will resonate extremely well with our customers and sales professionals alike,” commented Weiss.
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© 2018 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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Commentary Minority Stock Positions Stock Portfolio Todd Combs and Ted Weschler

Commentary: With Investment in India’s Paytm, Berkshire Moving Beyond Technology Aversion

(BRK.A), (BRK.B)

Insurance, manufacturing, transportation, retail, these are all things Berkshire Hathaway are known for but not technology.

Warren Buffett’s famed aversion to technology has been fading with Berkshire’s $46.6 billion stake in Apple, and now comes word that the company has taken a 3-4% stake in One97 Communications Ltd, the parent of Indian digital payments company Paytm.

In just eight years, Paytm has become India’s leading digital payments platform in country where digital payments are projected to grow five-fold by 2023.

The investment was actually made by Berkshire portfolio manager Todd Combs, and the main thing it shows is that the next generation of Berkshire’s investment management may not stick to a strictly value investing strategy.

“I have been impressed by Paytm and am excited about being a part of its growth story, as it looks to transform payments and financial services in India,” Combs said.

In addition to the investment, Combs will also join the eight-member board of the company, which includes Alibaba co-founder and executive chairman Joseph Tsai, Shardul Amarchand Mangaldas & Co managing partner Pallavi Shroff, Ant Financial CEO Eric Jing, and Goldman Sachs Asia chairman Mark Schwartz.

“Berkshire’s experience in financial services, and long-term investment horizon is going to be a huge advantage in Paytm’s journey of bringing 500 million Indians to the mainstream economy through financial inclusion,” Paytm’s founder and CEO Vijay Shekhar Sharma noted.

For a company the size of Berkshire, the $356 million investment in One97 Communications Ltd hardly makes a dent in its mountain of cash, which totaled $111 billion at the end of the second quarter. In fact, it represents just over a week’s profit at the rate Berkshire is currently generating it. However, the investment, while small, shows that Berkshire is both looking beyond the U.S. for investment opportunities and beyond its traditional investment parameters.

© 2018 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
Minority Stock Positions Stock Portfolio

BYD Selected as a Supplier for Georgia’s Statewide Contracts for Mass Transit

(BRK.A), (BRK.B)

BYD has been successfully selected as one of the suppliers for the State of Georgia’s Statewide Contracts for Public Mass Transit & Transportation Vehicles, specifically for battery-electric buses.

The resulting statewide contract will be a “convenience” source for all State of Georgia governmental entities, including but not limited to state offices, agencies, departments, boards, bureaus, commissioners, institutions, colleges, universities, as well as local government, municipalities, cities, townships, counties and other political subdivisions of the State of Georgia.

The statewide contract will also be available to other Governmental entities outside of the State of Georgia.

By leveraging the state’s purchasing power, local governments and transit agencies can benefit from the convenience and competitive pricing of these pre-established contracts. Under the purchasing contract, entities can buy BYD:

• Coaches – the 23-foot C6M, the 35-foot C8M, the 40-foot C9M, and the 45-foot C10M;
• Buses – the 30-foot K7M, the 35-foot K9S, the 40-foot K9M, and the 60-foot K11M.

In addition, BYD has been successfully selected as one of the suppliers for the City of Atlanta’s purchasing contract for electric vehicles, which includes battery-electric heavy duty trucks, support/taxi fleet vehicles, and buses. Departments from the City of Atlanta will be able to purchase from this contract, which will ensure competitive pricing and quicker deployment of the zero-emission battery-electric vehicles.

Furthermore, outside agencies will be able to purchase vehicles under a co-operative agreement with the City. Vehicles in this agreement include the following:

• Buses – 30-foot K7M, 35-foot K9S, 40-foot K9M, 60-foot K11M;
• Coaches – 23-foot C6M, 35-foot C8M, 40-foot C9M;
• Trucks/Vans – 5F (Class 5), 6F (Class 6), 6D (Class 6) Step Van;
• Support and Taxi Fleet – e6 Five-Door Sedan

BYD’s medium and heavy duty all-electric vehicles will help Atlanta achieve its goal of reducing greenhouse gases by 20% from 2009 levels by 2020 and by 40% by 2030.

“BYD is excited to be working with customers in Georgia and we look forward to growing our presence in the state and improving the air quality for Georgians, “stated Bobby Hill, Vice President of North America, BYD Coach and Bus.

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.

© 2018 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
Duracell

Duracell to Benefit from Growth of Alkaline Battery Market

(BRK.A), (BRK.B)

The trusty alkaline battery will continue to play a major role in the world’s battery needs according to a report released by KD Market Insights, “Alkaline Battery Market.”

Berkshire Hathaway’s Duracell, and other battery manufacturers, including Panasonic, Toshiba, Energizer Holdings, Zhongyin (Ningbo) Battery Co.Ltd., GPB, International Limited, Spectrum Brands Holding, Sony, Samsung, and Fujitsu should see a CAGR of 1.3% during 2018-2023.

According to the report, the market is anticipated to reach USD 8,468.7 Million by the end of 2023 from USD 7,946.6 Million in 2017.

Benefits and advantages cited for the alkaline battery include higher energy density, easy availability and lower cost will power the growth of alkaline battery market.

Just a few decades ago, flashlights and toys were the primary uses of disposable batteries, but today, alkaline batteries are used in a host of applications, including everything from wireless mice to medical devices.

© 2018 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
Minority Stock Positions Stock Portfolio

Chattanooga Now Rolling With BYD Electric Buses

(BRK.A), (BRK.B)

BYD has announced that the Chattanooga Regional Transportation Authority (CARTA) has taken delivery of their first three BYD K9 electric buses this week.

“We’re excited about receiving all three vehicles, and getting them out on the streets and tested,” said Lisa Maragnano, CARTA Executive Director. “We’re pleased about the enhanced service CARTA will to provide to the City of Chattanooga and Hamilton County through our partnership with BYD and Momentum Dynamics. Our new electric buses charge fast, efficiently and run emissions free all day. We look forward to the expansion of our electric vehicle fleet.”

As an early adopter of electric vehicle technology, CARTA has paved the way for a cleaner, smarter and more sustainable future in the transportation industry.

Earlier this year they received a “Smart City” award for their innovative electric vehicle charging and car share project. The integration of more electric buses will help CARTA achieve their goal of having a zero-emissions fleet.

Chattanooga is aggressively pursuing non-traditional transportation planning and infrastructure.

Momentum Dynamics developed a 200-kilowatt wireless charging system to support zero-emission transit buses in Chattanooga. The system automatically charges as passengers load and unload.

“We thrilled to partner with such a forward-thinking transit agency as CARTA. We believe our zero-emission buses are a perfect fit for their plans to use clean technology vehicles to serve their customers and help keep their region’s air clean,” said Bobby Hill, Vice President of BYD North America, Coach and Bus.

BYD North America also recently announced its joint venture with Generate Capital, Inc., a leading financier, owner, and operator of distributed infrastructure, to launch the first electric bus leasing program of its kind in the United States. The firm is also the first electric bus manufacturer with a unionized workforce at its cutting-edge facility of more than 800 employees in Lancaster, California.

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.

© 2018 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
Kraft Heinz

Kraft Heinz Putting £20 Million into UK Facility

(BRK.A), (BRK.B)

Kraft Heinz is putting £20 million into its production facility in Kitts Green near Wigan, UK.

According to Kraft Heinz, the investment expands the production capacity for its canned good products, including soups, baked beans, spaghetti, and its Snap Pots microwavable, quick-serve products.

The upgraded facility adds a high-speed production line capable of filling 1,200 cans with beans or soup a minute, and a new triple-pack can packaging line and a high-speed weigh filling line.

The Kitts Green site is already one of the largest canned food production facilities in Europe, and produces 383,000 tons of products every year even before the expansion.

© 2018 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 Opens New Logistics Center

(BRK.A), (BRK.B)

BNSF Railway has opened its newest logistics center in Moore, Okla., near Oklahoma City.

Logistics Center Oklahoma City is located within the city limits of Oklahoma City and Moore and is designed to accommodate manifest and unit train customers in addition to a site for storage.

“Logistics centers are just one way BNSF offers more choices, flexibility and efficiency for new, potential and existing customers,” said Colby Tanner, assistant vice president, economic development. “Logistics Center Oklahoma City provides unrivaled access to the state’s largest population center and one of our nation’s most prominent energy centers.”

The 195-acre site is located due east of BNSF’s Flynn Yard – an ideal location for both rail and highway access. A double-ended industry lead track will connect to the main line to serve customers at this location. Unit trains can arrive from either direction and without impeding access to manifest sites. All customers’ sites at Logistics Center Oklahoma City are customizable to fit their needs.

BNSF Logistics Centers focus on offering direct rail service in multi-customer, multi-commodity business parks. BNSF invests directly in the development of the facility to create sites in under-served, strategic, end-user markets. These facilities can service carload, unit train customers, or both.

© 2018 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 Expands Florida Distribution Center

(BRK.A), (BRK.B)

Berkshire Hathaway’s McLane Company is constructing roughly 300,000-square-foot addition to its distribution center in Northwest Ocala, Florida.

McLane Company is reportedly spending more than $26.5 million to enlarge the facility.

McLane will add 125 new jobs in Ocala when the expansion is completed.

McLane is one of the largest supply chain services leaders, providing grocery and foodservice supply chain solutions for convenience stores, mass merchants, drug stores and chain restaurants throughout the United States. McLane, through McLane Grocery and McLane Foodservice, operates over 80 distribution centers across the U.S. and one of the nation’s largest private fleets. The company buys, sells and delivers more than 50,000 different consumer products to nearly 110,000 locations across the U.S. In addition, McLane provides alcoholic beverage distribution through its wholly owned subsidiary, Empire Distributors, Inc.

© 2018 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.