Categories
BNSF

BNSF’s Record On-Time Performance and Safety in Southern California

(BRK.A), (BRK.B)

BNSF Railway, a subsidiary of Berkshire Hathaway, has set a remarkable milestone at its Los Angeles Hobart Intermodal Facility in 2023. Handling the world’s largest quantity of domestic intermodal freight, the facility achieved an impressive on-time departure record of 94%, surpassing the previous high of 86% set in 2012. What makes this achievement even more remarkable is that it was accomplished during the safest year on record for accidents and injuries.

Richard Dennison, BNSF California Division General Manager, attributes this success to the strong execution of the local team, a commitment to continuous improvement, and ongoing investments in Southern California.

To further enhance its capabilities, BNSF has expanded capacity at the Hobart facility by 500 spaces and introduced new crane stacking technology. Moreover, the company is dedicated to increasing efficiency at its San Bernardino intermodal facility and has strategically positioned 100 locomotives across the West Coast and other key network locations to mitigate potential service disruptions.

In a significant infrastructure development, BNSF completed a project in 2023 to add approximately 45 miles of triple track between Barstow and Needles, CA. Additionally, the company is progressing with the Barstow International Gateway, a groundbreaking master-planned rail facility expected to revolutionize logistics in the U.S. Upon completion, this facility will drive down supply chain costs, reduce carbon emissions, and offer a more cost-effective rail move compared to traditional truck transportation.

BNSF is also investing in cleaner technologies, including electric hostlers, as well as implementing advanced systems like Load Plan Optimizer and Automated Yard Checks to boost efficiency.

Looking ahead, Dennison emphasizes BNSF’s commitment to adapting to the evolving supply chain landscape through new service offerings and continued capital investments. With a focus on accommodating the growth in Southern California and across its network, BNSF Railway remains at the forefront of innovation in the transportation industry.

© 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

Categories
Lessons From Warren Buffett

Lessons From Warren Buffett: How to Judge Management

In the world of investing, the quality of a company’s management plays a pivotal role in its long-term success. While providing quality goods or services is essential, effective management is equally crucial in charting a course to profitability. Warren Buffett, renowned investor and CEO of Berkshire Hathaway, offers valuable insights into evaluating management quality, emphasizing two key yardsticks.

Buffett’s perspective, shared during the 1994 Berkshire Hathaway Annual Meeting, revolves around assessing how well management runs the business and how they treat shareholders, or “owners” as Buffett refers to them.

Firstly, evaluating how well management runs the business involves a comprehensive analysis of their performance and strategic decisions. Buffett suggests delving into what management has accomplished, along with benchmarking against competitors. Understanding the capital allocation decisions made over time provides insights into management’s effectiveness in maximizing shareholder value. This entails examining the context in which management operated and assessing their ability to navigate challenges while leveraging opportunities within the industry.

Moreover, Buffett underscores the importance of comprehending the business’s intricacies, as not all industries are equally understandable to every investor. Identifying industries or companies where one can grasp the dynamics allows for a more accurate assessment of management’s performance in executing their strategies.

Secondly, Buffett highlights the significance of how well management treats shareholders. This aspect reflects the company’s commitment to aligning its interests with those of its owners. Shareholders entrust management with their investments, expecting transparency, accountability, and fair treatment. Evaluating management’s attitude towards shareholders involves analyzing their communication practices, dividend policies, corporate governance structures, and commitment to creating long-term value.

In essence, Buffett’s approach to evaluating management quality emphasizes a holistic assessment that combines understanding the business dynamics with observing management’s performance and their treatment of shareholders. This approach aligns with Buffett’s renowned investment philosophy, which prioritizes long-term value creation and prudent capital allocation.

Investors seeking to evaluate management quality can draw valuable insights from Warren Buffett’s approach. By focusing on how well management runs the business and how they treat shareholders, investors can make more informed decisions, contributing to their long-term investment success.

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.

Categories
Minority Stock Positions

Berkshire-Backed Mitsubishi Corporation Launches Record Share Buyback Program

(BRK.A), (BRK.B)

Berkshire Hathaway-backed Mitsubishi Corporation, Japan’s largest trading company, has unveiled its largest-ever share buyback initiative, amounting to a staggering ¥500 million. This move, announced during its recent third quarter earnings call, underscores the company’s commitment to enhancing shareholder value and capitalizing on growth opportunities.

Mitsubishi shares hit a new all-time high on the news.

During the earnings call, Mitsubishi Corporation highlighted the availability of approximately ¥1 trillion in additional funds for both strategic investments and returns to shareholders within the current midterm plan. This substantial allocation signals the company’s proactive approach to leveraging its financial resources for sustained growth and profitability.

This announcement comes on the heels of Mitsubishi Corporation’s earlier buyback worth ¥100 billion in May 2023, which formed part of its fiscal year’s shareholder return strategy. Additionally, the company declared a 1-for-3 stock split and raised its dividend to ¥70 per share in November of the same year, further solidifying its commitment to rewarding shareholders.

Regarding future capital allocation and strategic mergers and acquisitions (M&A), a company spokesman hinted at significant endeavors, stating, “I cannot elaborate any further, but it’s going to be quite sizable.” This statement reflects Mitsubishi Corporation’s strategic vision and ambition in pursuing value-enhancing opportunities in the marketplace.

The interest in Japanese stocks among international investors received a significant boost in 2020 when Warren Buffett’s Berkshire Hathaway invested in Japan’s top five trading companies, including Mitsubishi, Mitsui, Sumitomo, Marubeni, and Itochu. This move not only underscored the attractiveness of Japanese equities but also spotlighted the potential for long-term growth and stability in the Japanese market.

© 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.

Categories
Berkshire Hathaway HomeServices

Berkshire Hathaway HomeServices Expands in Arkansas

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices, a prominent global residential real estate brokerage franchise network, is excited to announce its latest venture in the United States with the establishment of Berkshire Hathaway HomeServices Arkansas Realty. Leading this endeavor is Robin J. Miller, a seasoned professional with over 35 years of experience in the central Arkansas real estate scene.

Christy Budnick, CEO of Berkshire Hathaway HomeServices, expressed enthusiasm about the expansion, stating, “We warmly welcome Robin J. Miller and her team to Berkshire Hathaway HomeServices. Robin’s extensive knowledge of the local real estate landscape, coupled with her exceptional leadership skills and dedication to customer service, positions her as an excellent ambassador for our brand in Arkansas.”

Miller and her team bring a wealth of expertise catering to diverse clientele, including first-time homebuyers, veterans, luxury buyers and sellers, those seeking relocation services, new construction, and commercial real estate solutions.

Robin J. Miller, CEO/Broker/Owner of Berkshire Hathaway HomeServices Arkansas Realty, shared her excitement about affiliating with the network, saying, “I hold Berkshire Hathaway HomeServices in high esteem. Joining forces with this esteemed network enables us to harness the global brand’s reputation for quality, innovation, and reliability. Additionally, we gain access to a wide array of resources, tools, and technology designed to support agents in navigating any market condition.”

Miller emphasized her admiration for Berkshire Hathaway HomeServices’ reputation, values, and culture, affirming her commitment to cultivating a robust team. She is dedicated to assisting real estate agents in realizing their entrepreneurial aspirations and empowering them to effect positive changes in their professional lives.

Currently active in various real estate and community organizations, Miller is a member of the Little Rock REALTORS® Association, Arkansas REALTORS® Association, and National Association of REALTORS®. Additionally, she contributes to the Little Rock Chamber of Commerce as a Board and Executive Committee member and is actively involved in Geyer Springs First Baptist Church.

The launch of Berkshire Hathaway HomeServices Arkansas Realty marks an exciting chapter in the company’s expansion strategy, reflecting its commitment to providing top-notch real estate services and fostering growth opportunities in diverse markets across the United States.

© 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.

Categories
Jazwares

Jazwares Enhances UK Leadership Team Amid Record-Breaking Growth

(BRK.A), (BRK.B)

Berkshire Hathaway’s Jazwares, a prominent global toy company, and the maker of the toy sensation Squishmallows, is reinforcing its UK leadership team by appointing Lucy Whitamore as Sales Director, UK, and Adelle Engelbrecht as Operations Director, UK.

Lucy Whitamore, who transitioned from Tesco to Jazwares in 2019, has consistently showcased her commercial acumen and talent. In her new capacity, Lucy will spearhead the UK and Ireland sales team across all Jazwares brands, driving the formulation and execution of sales strategies aligned with the company’s regional growth objectives. Lucy expressed her enthusiasm, stating, “Leading such an exceptional team is truly a privilege, and I eagerly anticipate steering our continued success and expansion in 2024.”

Adelle Engelbrecht, who joined Jazwares in 2020, has played a pivotal role in the company’s rapid growth trajectory. As Operations Director, Adelle will oversee customer operations, warehouse management, and inbound/outbound logistics teams, focusing on strategic growth initiatives and implementing process enhancements to optimize productivity and efficiency. Adelle shared her excitement, stating, “I am thrilled to extend my journey with Jazwares, leveraging past achievements alongside an outstanding team. Over the past few years, we have doubled our UK team and achieved remarkable success across our brands while fostering strong partnerships across all business domains. I am eager to continue this upward trajectory into 2024 and beyond.”

Holly Oldham, Managing Director of UK & European Distributors, lauded the promotions, stating, “As we advance on our growth trajectory in the UK, we are scaling up, and I cannot think of two individuals better suited to lead the charge than Lucy and Adelle. Both possess a fervent passion and unwavering motivation, making them ideal candidates to drive our continued success in the region.”

© 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.

Categories
Lessons From Warren Buffett

Lessons From Warren Buffett: The Case for Simplicity

Investors often fall into the trap of believing that complexity is a key virtue in successful investing. However, legendary investor Warren Buffett challenges this notion, asserting that simplicity can be a more effective approach to achieving exceptional results.

At the 1994 Berkshire Hathaway Annual Meeting, Buffett emphasized that one doesn’t have to resort to intricate strategies to attain extraordinary outcomes. He debunked the misconception that navigating through complex investment landscapes is a prerequisite for success.

According to Buffett, the belief that jumping over a metaphorical seven-foot bar in investing will yield more lucrative rewards than stepping over a one-foot bar is a misconception. He dismisses the idea that complexity equates to higher financial gains in the investment world.

Buffett’s perspective highlights the importance of clarity and straightforwardness in investment strategies. Rather than seeking out convoluted methods, investors may find greater success by focusing on fundamental principles and avoiding unnecessary complexities. In essence, Buffett encourages investors to prioritize practicality over complexity, emphasizing that exceptional results can be achieved through a simpler and more straightforward approach to investing.

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.

Categories
IPS

Berkshire’s IPS Expands European Presence with Second Location in the UK

(BRK.A), (BRK.B)

Berkshire Hathaway’s IPS-Integrated Project Services, LLC, a leading provider of engineering, procurement, construction management, and validation services (EPCMV) for the biotechnology and pharmaceutical industries, has opened its second office in the United Kingdom.

Situated in the dynamic Glasshouse at Alderley Park, Macclesfield, this strategic move underscores the company’s dedication to expanding its presence and catering to the growing client base in the UK and Europe.

With a workforce of over 420 professionals spread across seven offices in Europe, including 170 in the UK, IPS’s narrative is one of remarkable growth.

Glen Slaymaker, Senior UK Director, remarks, “Our expansion in the UK and Europe speaks volumes about our team’s dedication to excellence. The Alderley Park office not only expands our physical footprint but also reinforces our commitment to closer client relationships and leveraging talent in the Northwest of England.”

Alderley Park, renowned for its innovation ecosystem, emerged as the ideal location for IPS’s second UK office. The Glasshouse, a cutting-edge facility, serves not only as a physical expansion but also fosters creativity and collaboration, aligning with IPS’s ethos of innovation and excellence.

Jim Stephanou, CEO of IPS, emphasizes the significance of this milestone, stating, “Our journey exemplifies the power of people, innovation, and collaboration. In just eight years, IPS has witnessed extraordinary growth. Our presence in Alderley Park underscores our commitment to exceptional service delivery and strengthening client partnerships.”

This strategic expansion sets the stage for further advancements, solidifying IPS’s position as a leader in the European market. The company looks forward to contributing to the thriving community at Alderley Park, pushing boundaries in the life sciences industry.

About IPS: IPS, a Berkshire Hathaway Company, is a global leader in providing innovative solutions for the biotechnology and pharmaceutical industries. Offering consultancy services, architecture, engineering, project controls, construction management, and compliance services, IPS enables clients to develop and manufacture life-impacting products. With the recent acquisition of Linesight, specializing in project management services across various sectors, IPS boasts over 3,200 professionals in 45 offices across 17 countries worldwide.

© 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.

Categories
Forest River

Forest River Acquires School Bus-Maker Collins Bus

(BRK.A), (BRK.B)

In a move signaling its continued growth and leadership within the transportation industry, Forest River Bus, LLC., a subsidiary of Berkshire Hathaway-owned Forest River, Inc., has acquired Collins Bus, one of the oldest and most esteemed school bus builders in the United States.

The deal was for $303 Million in cash.

A subsidiary of REV Group, Collins Bus boasts a storied legacy spanning over half a century, originating in 1967 in Kansas City, Missouri, before relocating to Hutchinson, Kansas. Recognized for its unwavering dedication to safety, durability, and reliability, Collins Bus revolutionized the industry with its pioneering development of the Type A school bus. This innovation catalyzed a succession of advancements, solidifying Collins buses as the epitome of versatility and trustworthiness nationwide.

Pete Liegl, President and CEO of Forest River, Inc., commented on the acquisition, stating, “The addition of Collins Bus to the Forest River Bus family signifies another milestone in our continued growth and industry leadership. Our Bus and Van division is a beacon of success for Forest River, and this acquisition further elevates our standards.”

David Wright, President of Forest River Bus, expressed excitement about the union, emphasizing, “We are delighted to welcome Collins Bus into the Forest River family. This acquisition merges the strengths and legacies of two industry titans. Collins Bus brings with it a remarkable history, an unwavering commitment to excellence, and a team of dedicated professionals. We cherish their heritage and anticipate building upon their achievements.”

Wright underscored the significance of prioritizing both products and people, stating, “Our focus extends beyond manufacturing to encompass our valued employees. The skilled and passionate individuals at Collins Bus are invaluable assets, and we eagerly anticipate collaborating with them to deliver superior school buses that prioritize student safety and well-being.”

Forest River’s acquisition of Collins Bus underscores a shared dedication to upholding the highest standards in manufacturing, customer service, and product innovation. Forest River pledges to honor Collins Bus’s legacy while integrating its own innovative approaches to enhance product offerings.

REV Group announced it will be exiting transit bus manufacturing by winding down operations at its ElDorado National-California business, which is expected to be substantially completed by the end of fiscal year 2024, once existing customer orders are completed and delivered.

© 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.

Categories
Lubrizol

Lubrizol and BASF Strike Licensing Deal for Industrial Lubricants

(BRK.A), (BRK.B)

Berkshire Hathaway-owned The Lubrizol Corporation and BASF Corporation have inked a significant licensing agreement for the production and distribution of select EMGARD® and Plurasafe® industrial lubricant products. Effective April 1, 2024, these licensed products will be seamlessly integrated into Lubrizol’s CPI Fluid Engineering brand.

The agreement encompasses a range of BASF products, including EMGARD 2946; EMGARD CL 4046, 4068; EMGARD EP WG 680; EMGARD HT CL 5220, 5320; Plurasafe CL 6032, 6046, 6068; Plurasafe P 44; and Plurasafe WGF 200 E. This collaboration marks a strategic move for both companies to better cater to specific customer requirements in the industrial lubricant market.

Brian Lieberman, Vice President of Fuel and Lubricant Solutions at BASF, expressed confidence in partnering with Lubrizol, citing the company’s expertise and ability to address niche customer needs. Meanwhile, Michael Brubaker, Vice President of Lubrizol Fluid Engineering, emphasized the agreement’s significance in bolstering Lubrizol’s extensive portfolio of Industrial Lubricants, further underscoring the company’s commitment to quality and customer satisfaction.

With Lubrizol boasting over 95 years of experience in researching, developing, and manufacturing specialty high-performance lubricants and BASF’s global presence, the collaboration is poised to deliver enhanced solutions to industrial lubricant customers worldwide.

BASF has taken proactive measures to ensure a smooth transition for affected customers, providing ordering and delivery details for related products. This seamless integration underscores the commitment of both organizations to prioritize customer satisfaction and market leadership in the industrial lubricant sector.

© 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.

Categories
Lessons From Warren Buffett

Lessons From Warren Buffett: Distinguishing Between Investing and Gambling

In the world of finance, there exists a fine line between investing and plain gambling, a distinction that renowned investor Warren Buffett finds almost inevitable for a particular type of investor. So, who are these investors? They are the ones constantly fixated on someone else’s portfolio.

During the 2017 Berkshire Hathaway Annual Meeting, Buffett shared his perspective on this phenomenon, stating, “There’s nothing more agonizing than to see your neighbor, who you think has an IQ about 30 points below you, getting richer than you are by buying stocks. And whether it’s internet stocks or whatever… and people succumb to it.” Buffett’s candid observation sheds light on the allure of trying to match or surpass the success of others in the stock market.

Buffett goes on to explain that during periods of a hot market, with new issues performing well and individuals leveraging their investments, many are drawn not only to speculation but what he describes as outright gambling. The temptation to chase after quick profits and follow the crowd can lead investors down a risky path.

The key takeaway from Buffett’s insight is the importance of staying true to sound investment principles rather than succumbing to the allure of others’ seemingly successful strategies. The comparison game in the market, driven by the fear of missing out, may often lead to speculative behavior that resembles more of a gamble than a calculated investment.

In conclusion, Warren Buffett’s wisdom serves as a reminder for investors to resist the urge to engage in speculative and impulsive actions driven by the success of others. Instead, a focus on informed and disciplined investing is crucial for building long-term wealth and financial stability.

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.