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Insurance

Gen Re Founding Member of InsurLab Germany

(BRK.A), (BRK.B)

Berkshire Hathaway’s Gen Re is one of the founding members of InsurLab Germany, as the insurance industry is embracing digitalization at an ever-faster pace, both in Germany and elsewhere.

InsurLab Germany is open to companies in the insurance industry along with start-ups and related service providers. Gen Re is one of eight founding members with an insurance background; other co-founders include the Cologne Chamber of Commerce and Industry, the University of Cologne and TH Köln University of Applied Sciences. Ulrich Pasdika, Head of Region Germany and Research & Development Life & Health at Gen Re, was elected to the association’s board along with two other representatives from the insurance industry.

Dr Winfried Heinen, Chairman of the Board of Executive Directors at General Reinsurance AG, said: “We are delighted about this initiative and are happy to actively support it. We believe it strengthens Cologne as an insurance hub and we can make a significant contribution to the discussions with our international expertise. As a top ten reinsurer with a global network, we have a strong interest in promoting collaboration between start-ups and the insurance industry – to the benefit of both sides.”

Gen Re has been involved in various initiatives dedicated to the digital future of the industry for some time now. One of the fields it focuses on within this area is data science. In addition to this, Gen Re is working with external partners to find practical solutions to the highly dynamic pace of change affecting the insurance industry as it tackles rapid technological progress and changing consumer behaviour.

Ulrich Pasdika commented: “We firmly believe that cooperation between insurers and reinsurers on the one hand and a wide range of InsurTechs on the other, offers huge potential for innovative approaches. Provided the industry maintains this collaboration in a smart, consistent way, digitalization represents a massive opportunity for it.

Cologne’s InsurLab is the latest in a long line of international initiatives and projects relating to technology and innovation which we have established around the world, and it offers us another outstanding opportunity to help shape these major changes.”

© 2017 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 Delivers First 60-Foot Pure Electric Bus in North America

(BRK.A), (BRK.B)

Chinese battery and vehicle maker BYD, the world’s largest manufacturer of electric vehicles, has delivered North America’s first 60-foot articulated battery-electric transit bus to the Antelope Valley Transit Authority (AVTA) in Los Angeles County, California.

The bus, part of AVTA’s plan to fully electrify its fleet by 2018, was also built with local labor in BYD’s factory in Lancaster, just miles from the AVTA office. It is the first delivery from AVTA’s order of thirteen 60’ BYD buses.

“The Antelope Valley Transit Authority is leading the North American transit market with its electrification commitment, and so it’s only fitting that they should have the first bus of its kind in North America,” said Macy Neshati, Senior Vice President of BYD Heavy Industries. “This bus runs longer and holds more passengers than any other commercially available battery-electric bus, and I know it will serve the people of the Antelope Valley well.”

Len Engel, Executive Director of the Antelope Valley Transit Authority, added, “We’ve been proud to be at the forefront of the smart business of electrification, protecting our air, saving money, and creating local jobs here in the Antelope Valley. Having the first 60-foot articulated electric transit bus on the continent is a feather in the cap of the people of Lancaster, Palmdale, and the other communities we serve.”

The 60-foot BYD bus seats up to 60 people and provides a range of 200 miles on a single charge with full charging completed in two to three hours. It will join the rest of the AVTA fleet in serving the half million residents of northern Los Angeles County.

Nearly 600 Californians are employed at the BYD factory in Lancaster. Workers there recently completed a card-check vote, an important step towards unionization.

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 is now worth roughly $1.8 billion.

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

© 2017 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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Benjamin Moore

Benjamin Moore Introduces First Scuff-Resistant Paint

(BRK.A), (BRK.B)

Berkshire Hathaway’s Benjamin Moore has introduced Ultra Spec SCUFF-X – the first-of-its-kind, one-component interior latex paint engineered specifically to resist scuffmarks in high-traffic, commercial environments.

According to the company, SCUFF-X provides superior scuff-resistance to two-component coatings, without the strong odor, pre-mixing, short pot-life and application difficulties associated with similar products.

“Our proprietary scuff-resistant technology minimizes repainting, retouching and cleaning, while offering easy application, low odor and quick dry-time,” said Alfredo Valiente, Benjamin Moore Brand Manager. “The Ultra Spec line of coatings is the trusted solution for commercial contractors and introducing SCUFF-X to the portfolio will dramatically improve how professionals maintain the busiest areas of their facilities.”

Recommended areas for use include high-traffic, commercial spaces such as hallways, stairwells, lobbies, offices, gymnasiums, locker rooms, public restrooms, retail fitting rooms and much more. The cutting-edge formulation enables the coating to be low-VOC, eligible for LEED® v4 credit, and CHPS certified.

© 2017 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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Lubrizol

Lubrizol Investing $60 Million to Expand Particle Sciences, Vesta and Other Facilities in 2017

(BRK.A), (BRK.B)

The Lubrizol Corporation’s LifeSciences business is continuing to invest in its key capabilities through a variety of planned expansions.

During this latest phase, a $60 million investment will focus on new product solutions, capacity expansion and additional cGMP manufacturing. These investments will strengthen the excipients, polymers, drug formulation and manufacturing, and medical device contract manufacturing capabilities at Lubrizol LifeSciences’ global facilities.

Commercial drug product manufacturing will be added at the company’s Particle Sciences facility in Bethlehem, PA. Leveraging the company’s knowledge in complex formulations and production, the facility will be adjacent to the existing development and clinical trial manufacturing site, offering customers a seamless flow from development through manufacturing. This new space, which is expected to be operational in the fourth quarter of 2017, will accommodate both sterile and non-sterile products, highly potent compounds, and organic solvent processing.

Additionally, LifeSciences is investing to expand its global facilities for excipients, polymers and contract manufacturing, with a focus on quality and efficiency. This capital investment will impact multiple sites to increase in-house engineering capacity across the LifeSciences portfolio of medical and pharmaceutical applications. This includes new investments in design, manufacturing and sterilization technologies for the production of interventional catheters and long-term implantable devices, an area of strategic importance to the medical device segment.

“We have significantly enhanced our capabilities through the combination of strong polymer technology, application know-how and world-class manufacturing,” states Deb Langer, vice president, Lubrizol Personal Home and Health Care.

“As healthcare companies look for total solution providers, we continue to invest in the right areas to provide valuable offerings where our customers are experiencing the most growth.”

© 2017 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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BNSF

Rise in Carloads Show Good News for BNSF

(BRK.A), (BRK.B)

Higher carload numbers are continuing to bring good news to BNSF Railway when compared to 2016.

Slumping volumes in 2016 saw the total intermodal and carload volumes down 4.94% from 2015 levels, with coal shipments slumping 20.88% from 2015 levels.

This time, coal is leading the way in the recovery, with shipments up a strong 22.56% year-to-date through May 27, as compared to the same period in 2016.

Also up a solid 4.55% are intermodal shipments.

While petroleum shipments continue to slide, with year-to-date numbers down 13.07%, the combined intermodal and carloads numbers are up 7.53% in the aggregate.

© 2017 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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HomeServices of America

Real Living Real Estate Touts Industry-Leading Customer Satisfaction Rating

(BRK.A), (BRK.B)

Berkshire Hathaway’s Real Living Real Estate has announced that its agents received a 97% customer satisfaction rating for 2016, according to independent ratings service, Quality Service Certification, Inc.
(QSC).

This is the second consecutive year the brokerage network scored 97%.

Through Real Living’s innovative Real Living 360 Service® program, the network asks customers to candidly rate the performance of their sales agent. QSC administers and validates these customer service satisfaction results following closed transactions for participating agents.

“The high ratings are a real win for our brand, especially when coupled with Real Living Real Estate recently being named Real Estate Agency Brand of the Year and Most Trusted Real Estate Brand in the 2017 Harris Poll EquiTrend® Study,” said Robert McAdams Jr., president of Real Living. “We are most trusted because of the industry-leading
service we consistently provide to buyers and sellers.”

The latest results from QSC place Real Living at the top of the real estate industry for customer satisfaction, based on responses from thousands of home buyers and sellers. A full 92% of buyers reported being very satisfied with the buying process and service provided by Real Living network professionals, while 89% of sellers said they were very satisfied with the selling process. In the latest report from the National Association of REALTORS®, only 60% of buyers said they were very satisfied with the buying process and service provided by their real estate professional while 61% of sellers said they were very satisfied with the selling process.

“Sharing performance guidelines and expectations speaks volumes about how genuinely we care about giving everything we can to our buyers and sellers,” said Lou Ann Pittman, director of relocation services at Real Living Pittman Properties. “Real Living 360 Service is not just a trade tool; it is a lifestyle our agents have developed and continue to improve upon each and every day in order to be the very best in the industry.”

Gino Blefari, CEO of HSF Affiliates, congratulated Real Living on the network’s industry-leading scores. “As the latest numbers show, Real Living network agents continue to deliver quality service year after year,” said Blefari. “This 97% overall satisfaction rating further proves the network’s dedication to only the very best in customer
care.”

Real Living Real Estate is a network brand of HSF Affiliates LLC, which is majority owned by Berkshire Hathaway’s HomeServices of America, Inc.

© 2017 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 Adds 20 More Cars to Ecuador’s Pure Electric Taxi Fleet

(BRK.A), (BRK.B)

After the delivery of the largest e-taxi fleet in Ecuador last month, Chinese new energy technology company BYD has delivered twenty more of its pure electric e6 taxi to Uruguay’s capital city, Montevideo.

The BYD pure electric taxi fleet was launched in 2015, as the country’s pioneering initiative towards electrified public transportation.

Key to the program is that the e6’s operational cost is 6-8 times lower than that of a traditional gasoline taxi.

The Uruguayan government is supporting the move to electrified transportation. The government offers unprecedented subsidies and advantages to potential buyers: 60,000 USD subsidy for a pure electric taxi license, which is 50% less as compared to a conventional taxi; owners will also be exempted of the 23% import tax on the vehicles; as well as a 5,000 USD subsidy for installing the charger, totaling up to 100,000 USD in incentives.

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 is now worth roughly $1.8 billion.

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

© 2017 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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Mouser Electronics

Mouser Electronics and Macnica Announce New Japan Strategic Partnership

(BRK.A), (BRK.B)

Berkshire Hathaway’s Mouser Electronics, Inc. and Macnica, Inc. have announced a new strategic partnership to deliver the highest levels of service and support to Japanese design engineers.

With the partnership, Macnica and Mouser are introducing a new co-branded website.

Macnica is the leading Japanese semiconductor distributor focused on offering technical support and the continuous advancement of its technological capabilities. Macnica has been successfully differentiated its position in the market by focusing on design in activities since its inception in 1972. Its geographical expansions to Asia, EU, and Americas started in 2008 to develop business with local customers beyond Japan.

Mouser is the industry’s leading New Product Introduction (NPI) distributor with an e-commerce model that makes it easy for engineers and buyers to find engineering quantities of the newest products for their designs. In addition, Mouser offers instant availability of both development tools and semiconductor products from the leading manufacturers.

“The online business has become increasingly important to our business. Mouser is a world-class e-commerce company focused on engineering quantities and new product introductions,” said Kiyoshi Nakashima, President and CEO of Macnica. “This joint partnership with Mouser will allow us to better serve our customers by offering an online presence combined with vast inventory, world-class fulfillment and Macnica’s technical support. We look forward to offering new value to Japanese customers and supporting them throughout their design cycle challenges.”

Through the partnership, customers in Japan can speed time-to-market by taking advantage of Macnica’s and Mouser’s complementary distribution models. Mouser will handle new product content and engineering quantities for prototype development, while Macnica will focus on volume distribution and technical support for engineers across Japan.

“We are excited to partner with Macnica and leverage our e-commerce and NPI expertise to serve engineering customers in Japan,” said Glenn Smith, Mouser President and CEO. “We will be able to maximize our strengths for mutual benefit and serve Japanese engineers with the highest levels of service while increasing our brand presence in this important market.”

© 2017 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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Berkadia

Berkadia Completes One of the Largest Multifamily Sales in San Diego History

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced the completion of one of San Diego County’s largest apartment transactions to date—the $232 million sale of Pacific Ridge.

Managing Directors Ed Rosen and John Chu, as well as Directors Kyle Pinkalla and Erin Dammen, completed the property’s sale on behalf of a San Francisco-based entity, which was purchased by American Assets Trust, Inc, a San Diego-based REIT.

“Pacific Ridge was a high-profile deal in an extremely desirable location,” noted Rosen. “Our data shows that asking rents in San Diego are up 4.9 percent from Q1 2016. We anticipate that this increase coupled with the property’s prime location across the street from the University of San Diego’s campus will help create long-term stabilization and rent growth for the property.”

Berkadia also reports metro San Diego has the third-lowest unemployment rate among major metro areas in California, behind only San Francisco-Oakland and San Jose-Santa Clara.

“Renters and investors alike find themselves attracted to this area given the numerous opportunities,” added Chu. “The metro unemployment rate was 4.3 percent at the end of January, which was 60 basis points below the rate recorded during the same time period in 2016, and it was also 80 basis points below the California rate. Strong employment and apartment fundamentals help fuel a steady market.”

The Class A luxury community, located at 5945 Linda Vista Road, was built in 2013 and offers 533 units with floor plans ranging from studio to three-bedroom. Situated on more than 15 acres with unobstructed ocean views, the resort-style Pacific Ridge boasts Moroccan-styled indoor and outdoor retreats, sun-drenched lounges, two saltwater pools and spas, and an outdoor grill and dining pavilion.

About Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation, Berkadia is a third-party commercial mortgage servicer, as well as an approved lender for Fannie Mae, Freddie Mac, and HUD/FHA.

The company is among the top Freddie Mac and Fannie Mae multifamily lenders.

Berkadia owes its origins to GMAC Commercial Mortgage Corporation, which was acquired in 2009 by Kohlberg Kravis Roberts & Co., Five Mile Capital Partners LLC, and Goldman Sachs Capital Partners. Christened Capmark Financial, the company had $10 billion of originations in 2008 and a servicing portfolio of more than $360 billion before running into bankruptcy in October 2009.

In a deal approved by the bankruptcy court, Capmark sold its mortgage loan and servicing to the newly formed Berkadia in a deal worth $515 million.

The deal brought Berkshire into the heart of the commercial loan serving business, and the company has one of the largest commercial real estate servicing portfolios.

© 2017 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’s Pure Electric Buses Now on the Job in Canada

(BRK.A), (BRK.B)

Chinese battery and vehicle maker BYD has debuted its first three pure electric buses in St. Albert, Canada.

The buses are the first electric buses BYD has sold in Canada, and the three BYD K9 buses are the first of seven electric buses for the city.

The order represents a conversion of a full 10% of the city’s bus fleet to electric, which will be fulfilled by the end of the year and shows its commitment to migrating its fleet to next-generation fuels.

Of particular note is the performance of the buses in cold weather. The buses are hardy enough to perform in extreme cold weather that can drop down to -35°C in the winter.

The city of Edmonton has also tested BYD’s buses and found that two of BYD’s K9 electric buses tested against two brand new diesel buses were more reliable in the extreme cold temperatures than the diesel buses.

The buses cost $970,000 Canadian dollars each, and are part of the province’s Green Transit Incentives Program, which supports new and existing public transport infrastructure technology. The project’s ultimate aim is to reduce the number of vehicles on the province’s roads and lower greenhouse gases.

BYD Canada Vice President Ted Dowling said the introduction of the 10.6 meter long battery powered buses were exciting. “Many more Canadian cities and provinces will be under pressure to buy electric buses soon because they cannot be led by the oil province.” Alberta has the world’s third largest oil reserves.

Provincial and federal politicians in Canada have actively promoted green transport solutions in the country as part of the country’s commitment to mitigating climate change.

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 is now worth roughly $1.8 billion.

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

© 2017 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.