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MiTek

MiTek Inks North American Sales and Distribution Agreement with OZCO Building Products

(BRK.A), (BRK.B)

Berkshire Hathaway’s MiTek has signed a North American sales and distribution agreement with OZCO Building Products.

OZCO Building Products is best known for originating the Ornamental Wood Ties hardware category, offering superior-quality structural connectors for use in decks, pergolas, benches, fences, gates, posts, gardens, planters, and more. OZCO is equally renown for setting the highest standards in retail displays, product installation training, and product knowledge.

As part of this new partnership, OZCO and its products will have access to MiTek’s North American sales force, and will be available through MiTek’s large footprint of retail and pro-dealer customers. OZCO products will now have access to the broad range of US & Canadian dealer locations that work closely with MiTek, while also tapping into the ever-growing MiTek customer base that has been converting to MiTek’s award-winning software, connectors, fasteners, and adhesives.

“Recently, OZCO Building Products has enjoyed tremendous growth, primarily because of our high-quality products combined with our top-tier dealer network,” said OZCO’s Ian Hill. “Now, in our never-ending quest to set higher standards as the leader in the Ornamental Wood Ties category, we couldn’t have asked for a better partner than MiTek. MiTek’s corporate culture and vision are a great fit for OZCO.”

© 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 Surpasses 20,000 E-Bus Orders

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With Tesla focusing primarily on the passenger car market, Chinese new energy company BYD has positioned itself as the world leader in pure electric bus design and development. The company is rapidly moving the e-bus from an experimental novelty to the next generation of reliable urban mass transit.

BYD recently stated that had a confirmed bus orderbook of more than 20,000 buses at the end of 2016.

BYD’s strength in the United States market is growing rapidly. In July, the Board of Los Angeles Metro, one of the largest transportation systems in the United States, voted today to award a contract for 60 40-foot all-electric buses to local manufacturer BYD. This was among the largest single contracts for electric buses in US history.

The buses are being assembled in BYD’s factory in Lancaster, California, and will enable the company to add 59 employees.

BYD has been increasing its manufacturing capability around the world, opening assembly plants in Argentina, Hungary, and France.

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.

Categories
Berkshire Hathaway Energy

Rocky Mountain Power Adding Wind Power in $3.2 Billion Investment

(BRK.A), (BRK.B)

Berkshire Hathaway’s Rocky Mountain Power will add approximately 1,100 megawatts of new wind generation as part of its planned new 140-mile Gateway West transmission segment. Most of the new investments will be in Wyoming.

“These investments will provide significant long-term benefits to our customers and bring substantial economic benefits to rural communities where the facilities will be located,” said Cindy A. Crane, Rocky Mountain Power President and CEO.

The company first announced the wind and transmission investments in April as part of its broader long-term energy plan. Additional filings and regulatory approvals will be needed for the projects to be built and serving customers by 2020 as planned.

The Energy Vision 2020 projects were chosen by the company as the most cost-effective option to meet customers’ energy needs over the next 20 years. By moving to complete the projects by 2020, the company will be able to use federal production tax credits to provide a net cost savings to customers over the life of the projects.

In making the wind and transmission investments, the project will also create between 1,100 and 1,600 construction jobs in Wyoming, and add approximately $120 million in tax revenue from construction.
The post-construction annual tax revenues will start at approximately $11 million in 2021 and growing to $14 million annually by 2024.

Rocky Mountain Power is also planning to add solar power generation, as well.

© 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 B-Box to Compete with Tesla’s Powerwall in U.S. Market

(BRK.A), (BRK.B)

Going head to head with Tesla’s Powerwall, Chinese new energy technology company BYD is looking to capitalize on the success of its B-Box home power storage system and will introduce the device in the US later this year.

The company will initially focus on east and west coast states, as well as Hawaii, where conventional electricity costs are high, and grid constraints make storage applications attractive.

BYD’s B-Box systems are already on sale in Germany, where it uses nine battery modules for a combined capacity of 11.52 KWh. The modular design enables the capacity of the B-Box system ton be further expanded as required. Up to five systems in total can be connected in parallel.

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.

Categories
GEICO Insurance

GEICO’s Catastrophe Response (CAT) Teams on the Job in Florida

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GEICO’s Catastrophe Response (CAT) teams are now on the ground in Florida.

The CAT teams include auto damage adjusters, supervisors, managers, and IT personnel that are ready to assist policyholders in the wake of Hurricane Irma.

Georgia, South Carolina, and Tennessee adjusters are also ready to assist in those areas.

GEICO is staffing drive-in claims centers throughout Florida. At the same time several hundred associates around the country are taking loss reports and answering incoming calls. As roads open and areas become more accessible GEICO adjusters are expected to see several thousand vehicles through the week.

Berkshire Hathaway’s GEICO is the top auto insurer in Florida, and has the most at risk with Hurricane Irma possibly headed for landfall on the state’s east coast.

In 2016, GEICO had a 20.68% market share of all auto policies in Florida.

© 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 to Supply Solar Modules for Power Stations in U.S.

(BRK.A), (BRK.B)

Chinese new energy technology company BYD continues to make inroads in the United States. The company has won a multi-million-dollar contract to supply 170-MW solar modules for PV power plant projects in the U.S

BYD will supply 170-MW solar modules to NextEra Energy, a US-based renewable energy project developer.

BYD completed several rounds of quality and performance tests to win the contract.
Speaking at the Solar Power International convention, Tom Zhao, Managing Director of BYD Solar Division, described how the development of BYD’s integrated PV and energy storage program, especially the commercial operation of the world’s first integrated PV and energy storage project in the UK, helped set the stage for the company’s recent breakthrough in the U.S.

“The U.K. project provided real proof that solar can provide power comparable with conventional energy sources,” Tom Zhao said. “BYD not only successfully enables the commercial operation of solar power we also are proactively exploring possibilities in wind power.”

Since its installation a year ago, BYD’s energy storage system powering the 60-MWh project in the UK has operated smoothly, responding quickly to the grid’s demand, matching over 99 percent of aggregate demand with five to six cycles every day. This frequency regulation project is the biggest of its kind in the U.K.

Tom Zhao added that BYD is also in discussions with several global new energy companies about introducing EV-charging infrastructure and other solutions to help create a zero-emission closed loop system, from power generation to energy storage for sustainable consumption.

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.

Categories
Insurance

Travel Insurance Benefits from Recent Hurricanes

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While Hurricanes Harvey and Irma have damaged or slowed many businesses, one area that is seeing an increase in demand is travel insurance.

Berkshire Hathaway Travel Protection has seen a 35% increase in calls and 6% increase in visits to BHTP.com since August 25 – the day before Harvey made landfall,” said BHTP President Dean Sivley. “Hurricane season always heightens the interest in travel insurance because storms can unfortunately ruin vacations that have been planned for months.”

The terms of travel insurance vary, travelers with existing travel insurance policies may be covered for delays, cancellations and interruptions, which may also cover non-refundable trip payments for the following reasons:

• Inclement weather causing delay or cancellation of travel
• Named hurricane causing cancellation or interruption of travel
• Traveler’s destination made uninhabitable or inaccessible
• Traveler or travel companion must cancel because their primary residence is made uninhabitable or inaccessible.

Generally, once a storm is named, travelers can still purchase travel insurance for their trip, but they will not be eligible for coverage for losses caused by travel delays, cancellations or interruptions due to that storm. BHTP advises travelers to contact their travel insurance provider to confirm and understand the coverage purchased.

© 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
Dairy Queen

NFL Player’s Contract Dispute Gives Dairy Queen Unanticipated Publicity Windfall

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An NFL football player’s contract dispute has given an unanticipated publicity windfall to Berkshire Hathaway’s Dairy Queen.

Pittsburgh Steelers running back Le’Veon Bell, who had been in a contract dispute with the Steelers, submitted an application to work at Dairy Queen while trying to come to terms on a long-term contract with the Steelers.

On Tuesday, customers at the Dairy Queen in New Kensington, Pennsylvania discovered that Le’Veon Bell was taking their orders and serving fans, at least for the day.

Bell’s stint at the Dairy Queen came about after he tweeted a photo of himself filling out the application.

Dairy Queen tweeted back: “We’re always looking for top talent to join our team. Send us a DM and we’ll set up an interview.” Bell took Dairy Queen up on its offer, and fans of the Steelers and Dairy Queen were the beneficiaries.

In August, Bell resolved his contract dispute, which came during training camp, but he stepped behind the counter on his day off as part of his love for DQ.

© 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 Warren Buffett

Shareholders Put the Kibosh on Berkshire Hathaway’s Additional Home Capital Investment

(BRK.A), (BRK.B)

Berkshire Hathaway’s plan to make an additional investment in Canadian lender Home Capital Group in exchange for shares priced well-below the market price has been soundly rejected by Home Capital’s shareholders.

The investment would have increased Berkshire’s stake from 20% to 38.4% in exchange for shares priced at C$10.30 per share.

Home Capital’s Chairwoman Brenda Eprile announced the results of a special meeting of shareholders had 88.79% of the votes cast rejected the proposal with only 11.21% voting for it.

In June, Berkshire through its wholly-owned subsidiary, Columbia Insurance Company, made an initial investment of C$153,225,739 to acquire 16,044,580 common shares on a private placement basis, representing an approximate 19.99% equity stake in Home Capital on a post-issuance basis (25% on a pre-issuance basis).

The shareholders rejection does not effect a C$2 billion credit facility that Berkshire supplied to shore up the lender after a run on deposits in may left it on the verge of collapse.

© 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
Acquisitions HomeServices of America

HomeServices of America Acquires Largest Private Residential Real Estate Company in the United States

(BRK.A), (BRK.B)

Berkshire Hathaway’s HomeServices of America, Inc. has acquired The Long & Foster Companies, Inc., the largest private residential real estate company in the United States by sales volume.

The acquisition includes Long & Foster’s family of companies, including Long & Foster Real Estate and its market-leading affiliated business lines in mortgage, settlement services, insurance, and property management. Financial terms of the transaction were not disclosed.

In 2016, Long & Foster Real Estate had nearly $29 billion in sales volume and more than 81,000 home sale transactions; Prosperity Mortgage originated $3.3 billion in home loans, representing nearly 12,000 mortgages; Long & Foster’s settlement services companies closed over 20,000 title and escrow transactions; and Long & Foster Insurance issued approximately 8,300 property and casualty insurance policies.

Headquartered in Chantilly, Virginia, Long & Foster Real Estate is the largest independent residential real estate brand by volume and the second largest independent brand by units according to the 2017 REAL Trends 500 report.

The company has approximately 11,000 agents in over 230 offices serving buyers and sellers in major markets across the Mid-Atlantic and beyond, including Virginia, Maryland, the District of Columbia, West Virginia, North Carolina, Pennsylvania, Delaware, and New Jersey.

Founded in 1968 by Wes Foster and Henry Long, Long & Foster’s family of companies has grown to become one of the nation’s foremost real estate and financial services companies. The Long & Foster name is synonymous with providing clients the highest level of customer service, local expertise, and resources, all delivered by a team of knowledgeable agents using the firm’s renowned innovative technologies and data-driven insights.

Wes Foster will remain with the company as Chairman Emeritus. Jeff Detwiler, Long & Foster’s current president and chief operating officer, will assume the role of chief executive officer and, together with the existing team of enterprise and business line leaders, will oversee growth initiatives and continue to manage day-to-day operations.

© 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.