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HomeServices of America

Intero Real Estate Services Agents Receive Recognition at NAHREP”s Top Latino Agents Awards

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Berkshire Hathaway’s Intero Real Estate Services, a wholly owned subsidiary of HomeServices of America, Inc., has announced the recognition several of their associates received at the 2017 National Association of Hispanic Real Estate Professionals (NAHREP)

Top Latino Agents Awards. NAHREP is a purpose-driven organization that is dedicated to a combination of entrepreneurial spirit, cultural heritage, and the advocacy of its members.

There were over six hundred nominations this year, and we are proud that our agents finished strongly in a number of categories.

Erika Carrasco and Joe Velasco finished in the Top 250 in the units sold category.

Finishing in the Top 100 in sales volume were Erika Carrasco and Carlos Padilla.

The Top 100 California Latino Real Estate Agents list included Erika Carrasco from the Silver Creek office, Joe Velasco from the Saratoga office, Carlos Padilla from the Los Altos office, Juan Barragan from the Livermore office, Juan Jara from the Corona office, and Sirilio Ortiz from the Rancho Cucamonga office.

Tom Tognoli, founder and CEO at Intero said of the award winners, “We are so proud and happy to see our agents recognized for their hard work and dedication to their clients, the industry, and Intero. We could not ask for a better group of people to receive these honors and we thank them tremendously for their commitment to excellence.”

© 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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Nebraska Furniture Mart

Home Furnishings Forecast Means Positive Outlook for Berkshire’s Furniture Retailers

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Berkshire Hathaway’s furniture retailing companies, which include Nebraska Furniture Mart, Jordan’s, and R.C. Wiley, will benefit from strong projected growth in the home furniture market.

Home furniture includes beds and mattresses, tables and table tops, desks, chairs, storage cabinets, sofas, and other furniture that are used to make a house or building a comfortable place to live.

In a new report from Research and Markets, “Home Furniture Market in the US 2017-2021,” the global luxury furniture market is projected to grow at a compound annual growth rate (CAGR) of 6.14% during the period from 2017-2021.

According to the report, one driver in the market is improving residential construction market. The real estate industry in the US is expected to drive the home furniture market in the next few years. This will be due to the increasing number of people engaging in household formation. There has been a significant rise in the number of women joining the workforce and living independently. As a result, there is a rising need for service apartments and single story houses.

© 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 Chooses Brazil for Photovoltaic Research Center

(BRK.A), (BRK.B)

Chinese battery and vehicle maker BYD Company Ltd. has signed a letter of cooperation with Universidade Estadual de Campinas (Unicamp), in which the company commits to transfer over R$ 5 million (approximately 1.5 million USD) by 2020 to set up BYD’s first overseas Photovoltaic Research Center at the university.

“With a global R&D staff of over 20,000 engineers and researchers, and featuring amongst Fortune Magazine’s “15 companies changing the world”, the importance BYD gives to technological research is very clear. Our company is a true leader in the technology sector, and such leadership greatly relies on investing in local research and development.” says Stella Li, BYD’s global vice president.

The company opened its solar panel factory in Campinas this April and thus became the first in Brazil to offer comprehensive zero emission energy ecosystem projects – with generation, storage and transportation – to the local market.

The agreement aims to establish cooperation between BYD and Unicamp in scientific research and technological development activities.

“For Unicamp, it is a great opportunity to establish the foundations of a partnership with BYD that promises to be very fruitful, by following the precept of innovation in technological development from the very start. The company chose Campinas as its base in Brazil, and we are convinced that Unicamp will be an important partner in research and development in the field of photovoltaic, which will certainly lead to the establishment of other collaborations in the future, always in search of a sustainable future.” Said Marcelo Knobel, dean of Unicamp.

BYD’s investment is a counterpart of the federal government’s PADIS (Program of Support to the Technological Development of the Semiconductor Industry and Displays), under which the company is registered.

Gradual contributions will be made annually, according to Research and Development revenues. In 2017 and 2018, the percentage will be 4% and in 2019 and 2020 it will reach 5% of net sales in the domestic market. “As a high-tech company, BYD’s goal is to bring the best of the world’s technology into the country, always generating more innovation,” adds BYD President in Brazil, Tyler Li.

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 Signs Global Agreement with ITT Cannon

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Berkshire Hathaway’s Mouser Electronics, and authorized semiconductor and electronic component distributor, has signed a global distribution agreement with ITT Cannon, a world leader in the design and manufacture of highly reliable and innovative connector and interconnect products serving military and commercial customers in the aerospace and defense, medical, energy, transportation, and industrial markets.

Mouser is excited to offer our customers this broad assortment of interconnect solutions from ITT Cannon,” said Krystal Jackson, Vice President, Supplier Management at Mouser. “ITT Cannon has a rich history of designing and manufacturing reliable connectors, earning a reputation for innovation and quality.”

“We are eager to launch our partnership with Mouser,” said Anh Phan, Vice President of Global Sales at ITT Cannon. “Mouser’s attention to detail, cutting-edge products, and responsive customer service makes them a perfect partner for ITT Cannon. This partnership offers another excellent channel for customers to procure our products quickly, anywhere and at any time.”

© 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’s Student Housing Group Closes Over $146 Million in Sales for Two West Coast Student Housing Properties

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Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced that its Student Housing Group has completed the sale of two properties totaling more than $146 million.

Berkadia’s student housing team, led by Managing Director Kevin Larimer and Director Greg Gonzalez, teamed with Senior Managing Director Kenny Dudunakis, Director David Sorensen and Director Ben Johnson of Berkadia’s Seattle office on the sale of AVA University District at University of Washington – Seattle on behalf of the seller, Arlington, Virginia based Avalon Bay Communities Inc. The student housing team, working with Managing Director Shane Shafer of Berkadia’s Irvine office, also closed Fullerton University Village at California State University in Fullerton, California on behalf of the seller, a local TIC group.

“Student housing seems to be the product type of choice right now for investors,” said Larimer. “Investors have identified the strong fundamentals of student housing with fewer deliveries, average occupancy above 97 percent, annual rent growth more than three percent and a fixed resident base from which to draw. Whether they are looking for yield or a defensive position, investors are finding a comfortable home for their capital in student housing.”

Located at 4535 12th Ave., AVA University District features studio, one- and two-bedroom apartments within walking distance of University of Washington and less than five miles from downtown Seattle. Units feature high-speed internet, a washer/dryer and air conditioning. The property also has a barbeque and picnic area, two rooftops with green spaces and on-site social events.

Fullerton University Village is located at 2000-2030 Oxford Ave., within walking distance of California State University, Fullerton. The property offers studio, two- and three-bedroom fully-furnished apartments with refrigerators, flat screen televisions and all utilities included in the cost of rent. Residents can also enjoy a fitness center, swimming pool, student lounge and monthly organized events.

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.

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Berkshire Hathaway Energy

Rocky Mountain Power to Build 140-mile, 500-kV Transmission Line

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Berkshire Hathaway’s Rocky Mountain Power, a unit of PacifiCorp, will build a new 140-mile, 500-kV transmission line running from the new Aeolus substation to the new Anticline substation; a 16-mile, 230-kV transmission line from the company’s existing Shirley Basin substation to the new Aeolus substation; rebuild four miles of 230-kV transmission line between Aeolus and the existing Freezeout substation; to rebuild 14 miles of an existing 230-kV transmission line between the Freezeout substation and the Standpipe substation.

Rocky Mountain Power, which serves nearly 1.1 million customers in Idaho, Utah and Wyoming, will file request for approval of the project on June 30 with the Utah Public Service Commission.

The company’s application will include a request for approval to procure or build new Wyoming wind resources with a total capacity of 860 MW.

© 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

BNSF Continues To Have Robust Shipping Volumes Compared to 2016

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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 21.72% year-to-date through June18, as compared to the same period in 2016.

Also up a solid 4.9% are intermodal shipments.

While petroleum shipments continue to slide, with year-to-date numbers down 13.22%, the combined intermodal and carloads numbers are up 7.77% 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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Minority Stock Positions Stock Portfolio

Berkshire Hathaway Invests $377 Million in STORE Capital

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Berkshire Hathaway has purchased 9.8% of STORE Capital Corporation, an internally managed net-lease real estate investment trust (REIT) that invests in Single Tenant Operational Real Estate.

Berkshire through a subsidiary invested $377 million for 18.6 million shares of company stock in a private placement at a price of $20.25 per share.

“Berkshire Hathaway’s investment solidly positions STORE for continued growth, while adding measurably to our already strong financial position,” said Christopher H. Volk, President and Chief Executive Officer of STORE Capital. “An investment in our company from one of history’s most admired investors represents a vote of confidence in our experienced leadership team and an affirmation of our profit-center real estate investment and management approach.”

In a statement to CNBC, Volk noted that Berkshire had first inquired about the company in 2014 and had been following them closely.

© 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 GEICO Insurance

GEICO Besting Esurance in Illinois

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GEICO Casualty has been gaining customers in Illinois while its competitor, Allstate’s Esurance, has seen policyholder slippage.

Esurance’s total Illinois policyholders dropped 4% from the prior year to 49,317, according to its June 12 filing with the Illinois Department of Insurance. Nationally, its total policyholders fell 2% to 1.4 million from 1.43 million.

In contrast, GEICO Casualty’s Illinois policyholders grew to 212,029 policyholders as of March 31, which is a strong 15% increase from 183,644 policyholders.

In 2011, Allstate bought Esurance and Answer Financial from White Mountains Insurance Group for roughly $1 billion. Esurance sells auto insurance directly to customers online and through call centers. The unit has never turned a profit, and Allstate has responded by slashing its advertising budget.

© 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

Berkshire Hathaway to Invest Millions in Home Capital Group

(BRK.A), (BRK.B)

Berkshire Hathaway will invest C$153,225,739 in Canadian lender Home Capital Group.

Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending.

Berkshire will make the investment through its wholly-owned subsidiary, Columbia Insurance Company, which will make 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).

Berkshire will not be granted any rights to nominate directors of Home Capital or any governance rights as an equity holder.

© 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.