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Lubrizol

Lubrizol Aims to Double Revenues From India

(BRK.A), (BRK.B)

Lubrizol, a global player in specialty chemicals and a subsidiary of Berkshire Hathaway, has set its sights on doubling its revenue from the lucrative Indian market by 2029.

Currently, India contributes ten percent to the company’s global revenues, a figure set to skyrocket with strategic investments and expansion plans underway.

To fuel this ambitious growth trajectory, Lubrizol is injecting a substantial $150 million into its operations in India. One of the pivotal moves includes the construction of a cutting-edge CPVC resin plant in Vilayat, slated to claim the title of the world’s largest upon its completion in 2025. This state-of-the-art facility is poised to significantly bolster Lubrizol’s production capacity and meet the burgeoning demand for specialty chemicals in India and beyond.

Moreover, Lubrizol is establishing a Global Capacity Center (GCC) in Pune, India, aimed at fostering innovation and enhancing operational efficiency in the region. This strategic initiative not only underscores the company’s commitment to driving technological advancements but also positions India as a vital hub in Lubrizol’s global network.

In addition to infrastructure development, Lubrizol is ramping up its manpower, anticipating the creation of approximately 4,000 direct and indirect jobs through its new investments. This move not only bolsters employment opportunities but also underscores Lubrizol’s role as a catalyst for economic growth and development in the Indian market.

Furthermore, recognizing the burgeoning demand for CPVC compounds, Lubrizol has doubled its compound capacity at its Dahej, Gujarat, facility. This expansion reinforces Lubrizol’s commitment to meeting the evolving needs of its customers in India, further solidifying its position as a trusted partner in the specialty chemicals 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.

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Dairy Queen

Dairy Queen Names New VP of Franchise Development for U.S. & Canada

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Berkshire Hathaway-owned American Dairy Queen Corporation, a prominent player in the quick-service restaurant industry and a subsidiary of International Dairy Queen, Inc., has announced the appointment of Gregg Benvenuto as its new Vice President of Franchise Development for the U.S. and Canada.

In his new role, Benvenuto will spearhead efforts to drive the company’s development market planning and franchise unit sales across both countries.

Bringing with him a wealth of experience spanning decades in restaurant franchise development, Benvenuto has previously held executive positions at renowned establishments such as Dine Brands, Papa Murphy’s, and The Coffee Bean and Tea Leaf. Additionally, his tenure as a franchise business consultant at Yum! Brands further solidifies his expertise in the field.

Dan Kropp, Chief Operating Officer, U.S. and Canada at American Dairy Queen Corporation, expressed confidence in Benvenuto’s abilities, stating, “We have aggressive five-year goals to open new DQ Grill & Chill restaurants in the U.S. and Canada. Gregg brings impressive franchise development leadership in the restaurant industry in roles of increasing responsibility. His contributions will help us grow DQ restaurants in key markets to ensure we are ubiquitous in every state and every province.”

Benvenuto himself conveyed his excitement about joining the Dairy Queen team during a period of significant growth and opportunity. “I’m pleased to join the Dairy Queen team at a time of tremendous growth and continuous opportunity,” said Benvenuto. “I look forward to leading a team of franchise development professionals to reach new levels of success. Together, we can make DQ restaurants a household name in every part of the U.S. and Canada.”

With a bachelor’s degree in business administration from Towson State University in Baltimore, Maryland, Benvenuto’s hands-on experience positions himself as a key asset in driving American Dairy Queen Corporation’s expansion efforts in the North American 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.

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Lessons From Warren Buffett

Lessons From Warren Buffett: Stocks Can Sell at Silly Prices

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The Efficient Market Hypothesis (EMH) has long been a cornerstone theory in understanding stock market behavior. It posits that at any given moment, stock prices accurately reflect all available information about a company. This theory gained significant traction during the 1970s, buoyed by the rapid expansion of the Information Age, which revolutionized data storage and exchange.

In an era where even casual investors wield valuation tools that would have seemed like science fiction to traders of the past, one might assume that market efficiency has reached unprecedented levels. However, Warren Buffett challenges this notion, noting that the market is mostly efficient but not completely efficient.

Buffett contends that in some cases the market is far from efficient. Contrary to the belief that stock prices consistently reflect a company’s true value, Buffett argues that market inefficiencies are inherent. He asserts that stocks often become mispriced due to various factors.

Speaking at the 2012 Berkshire Hathaway Annual Meeting, Buffett referenced Benjamin Graham’s seminal work, “The Intelligent Investor.” In particular, he highlighted Chapter 8, which introduces the concept of “Mr. Market.” According to Graham, Mr. Market is an erratic and unpredictable figure, prone to irrational behavior akin to a “psychotic drunk.” Buffett emphasizes that investors should view Mr. Market as a partner rather than an advisor, seizing opportunities when prices deviate from intrinsic value.

In essence, Buffett’s perspective underscores the importance of recognizing and capitalizing on market fluctuations, leveraging them to make sound investment decisions, especially when stocks in rare instances sell at “silly prices.”

Despite advancements in technology and access to information, the market remains a realm where irrationality and opportunity coexist, shaping the dynamics of 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 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.

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Occidental

Berkshire Hathaway Granted Approval to Substantially Increase Stake in Occidental Petroleum

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The Federal Energy Regulatory Commission (FERC) has greenlit Berkshire Hathaway’s expansion of its stake in Occidental Petroleum, deeming it “consistent with the public interest.” This move permits Berkshire to boost its ownership in the energy giant up to fifty percent.

Warren Buffett, the driving force behind Berkshire Hathaway’s major investment decisions, has articulated the company’s positive stance on Occidental Petroleum. At the 2023 Berkshire Hathaway Annual Meeting, Buffett expressed favor towards Occidental’s position in the Permian Basin, highlighting its strategic significance. However, he emphasized that Berkshire has no intentions of acquiring a controlling interest in the company. Buffett reiterated confidence in Occidental’s existing management, asserting, “we wouldn’t know what to do with it.”

In addition to its ongoing open market purchases, Berkshire Hathaway holds warrants enabling it to acquire 80 million Occidental shares at an exercise price of $62.50 per share. These warrants were obtained in 2019 when Berkshire provided $10 billion, facilitating Occidental’s successful bid of $38 billion to acquire Anadarko Petroleum, outbidding industry heavyweight Chevron.

Berkshire Hathaway’s increasing stake in Occidental Petroleum underscores its continued confidence in the energy sector and strategic investments aligned with its long-term vision.

© 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.

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BYD

BYD’s New-Energy Vehicle Sales Surge in March, Rebounding Strongly

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BYD, the Chinese automaker backed by Berkshire Hathaway, has had a remarkable resurgence in its new-energy vehicle sales for the month of March. The company reported selling a total of 626,263 new-energy vehicles, encompassing both plug-in electric vehicles (EVs) and battery EVs. This figure marks a significant 13% increase compared to the same period last year.

After facing a decline in sales during the initial months of the year, BYD experienced a robust rebound in March, with sales soaring by an impressive 46%.

BYD’s Chairman and President, Wang Chuanfu, noted at an investors’ conference on Wednesday that total deliveries in 2024 may exceed 3.6 million vehicles. He predicted that total global exports could reach 500,000 units.

The increase in sales, despite growing competition from other Chinese automakers, reflects the growing demand for eco-friendly transportation solutions, driven by increasing environmental consciousness and a shift towards sustainable mobility options.

© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, 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.

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Berkshire Hathaway Specialty Insurance

Berkshire Hathaway Specialty Insurance Names Chres Lee to Head of Transactional Liability in Canada

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Berkshire Hathaway Specialty Insurance (BHSI) has bolstered its global Transactional Liability team with the addition of Chres Lee as Head of Transactional Liability in Canada, the company has announced.

Michael Brooks, Head of Transactional Liability, North America, expressed the significance of this move, stating, “With this latest appointment, we continue to strengthen our Transactional Liability team and capabilities around the globe. Chres has deep M&A expertise, strong market relationships, and shares BHSI’s commitment to ensuring excellent service for our customers and brokers throughout Canada.”

Lee brings a wealth of experience to her new role, having served as M&A Underwriting Counsel at another major insurer prior to joining BHSI. Before that, she spent eight years practicing M&A law at two leading Canadian law firms. Based in Ontario, Canada, Lee is poised to contribute significantly to BHSI’s presence and operations in the Canadian market.

This expansion underscores BHSI’s dedication to providing top-notch services and expertise in transactional liability insurance, reinforcing its position as a trusted partner for clients and brokers 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.

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BYD

Berkshire Hathaway-Backed BYD Enters Greek Market

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BYD, the Chinese automaker backed by Berkshire Hathaway, has officially entered the Greek market, marking another significant step in its European expansion. Partnering with the Sfakianakis Group, BYD unveiled its lineup of electric vehicles at a ceremony held at the Zappeion Megaron in Athens on March 20th, 2024.

Known for its expertise in power battery development and commitment to environmentally friendly technologies, BYD is introducing a range of innovative eco-friendly cars to Greece. The launch event showcased the BYD ATTO 3 (C-SUV) and the BYD SEAL (D-Sedan), with plans to introduce the BYD DOLPHIN (C-Hatchback) and the BYD SEAL U (D-SUV) in both pure-electric (BEV) and Plug-In Hybrid (PHEV) variants.

Sfakianakis Group, BYD’s partner in Greece, is dedicated to providing exceptional customer service. Two BYD stores will open in Athens, offering premium retail experiences, test drives, and direct ordering options. The Group is also expanding its network of Retail Partners and Authorized Repairers throughout Greece to ensure top-quality sales and after-sales services.

Speaking at the event, Michael Shu, Managing Director of BYD Europe, emphasized the company’s commitment to making electric mobility accessible to more consumers. The partnership with Sfakianakis Group represents BYD Europe’s first national launch of 2024, highlighting the importance of the Greek market in BYD’s global strategy.

The two models launched in Greece, the BYD ATTO 3 and the BYD SEAL, embody BYD’s vision for sustainable transportation. The ATTO 3 offers spaciousness and dynamic performance in a C-segment SUV, while the SEAL combines premium style with high-tech intelligent features in a D-segment sedan.

With competitive starting prices of €37,990 for the ATTO 3 and €45,990 for the SEAL, BYD aims to attract Greek consumers seeking environmentally friendly and technologically advanced vehicles. The company’s entry into the Greek market signifies its ongoing commitment to innovation and sustainability in the automotive industry.

© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, 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.

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Lessons From Warren Buffett

Lessons from Warren Buffett: The Most Obliging Place for the Patient Investor

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Warren Buffett is often celebrated for his remarkable patience in the world of finance. Unlike many investors who are quick to jump on opportunities, Buffett is known for his willingness to accumulate significant cash reserves, sometimes exceeding over a hundred billion dollars, until he finds the perfect investment opportunity.

Buffett likens investing to the strategy of a baseball batter waiting for the right pitch. He understands that in the stock market, patience is not only a virtue but also a powerful tool for success. At the 2012 Berkshire Hathaway Annual Meeting, Buffett emphasized the unique advantages of the stock market, describing it as the “most obliging, money-making place in the world.”

In Buffett’s view, the stock market offers unparalleled opportunities for investors to exercise patience. He highlights the fact that thousands of businesses are constantly being priced, providing a level playing field for buyers and sellers alike. Unlike other investment alternatives such as owning farms, where transactions are not as fluid or transparent, the stock market allows investors to make informed decisions based on readily available information.

One of the key advantages Buffett sees in the stock market is its dynamic nature. Prices fluctuate daily, presenting investors with a multitude of opportunities. However, Buffett cautions against succumbing to impulsive behavior, likening it to behaving like a “drunken psychotic.” Instead, he advises investors to remain disciplined and take advantage of the favorable rules inherent in the market.

For Buffett, patience is not simply about waiting idly for opportunities to arise; it’s about being prepared to act decisively when the time is right. By exercising patience and discipline, Buffett has built a reputation as one of the most successful investors in history.

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 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.

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IPS

Berkshire Hathaway’s IPS in Strategic Partnership for Development of a Life Science, Healthcare, and Technology Park

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Berkshire Hathaway’s IPS, Allyant, and the Canadian Life Science and Technology Park have joined forces in a creating a state-of-the-art Life Science, Healthcare, and Technology Park.

The strategic partnership will cater to specialized turnkey startups, commercial manufacturing, and comprehensive support facilities.

The initial phase of this ambitious venture will focus on the development and site master planning of a sprawling 56-acre area in Georgina, Ontario, nestled within the Keswick Business Park. The objective is to establish a dynamic hub capable of accommodating a diverse range of sectors, spanning from pharmaceuticals, biotechnology, and medical devices to digital technology and beyond.

Safa’a Al-Rais, President and CEO of the Canadian Life Science and Technology Park, expressed enthusiasm about the collaboration, emphasizing its role in fostering innovation, capital efficiency, and sustainability. Al-Rais highlighted the critical importance of expediting the development and delivery of transformative services and medicines to patients, underlining the strategic significance of this partnership.

IPS, a Berkshire Hathaway Company, is a global leader in providing innovative solutions for the biotechnology and pharmaceutical industries. With a comprehensive range of services including consultancy, architecture, engineering, and compliance, IPS empowers clients to develop and manufacture life-impacting products. The recent acquisition of Linesight further enhances IPS’s capabilities, solidifying its position as a leader in project management across various sectors 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.

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Lessons From Warren Buffett

Lessons From Warren Buffett: Business Schools Teach a Lot of Nonsense About Investing

Over the years, Warren Buffett has voiced his dissatisfaction with the traditional approach to teaching investing in business schools. According to Buffett, the focus on esoteric financial theories often leads students away from the fundamental skill of valuing businesses.

Buffett, speaking at the 2012 Berkshire Hathaway Annual Meeting, criticized the emphasis on mathematical-based finance theories, labeling much of it as “nonsense.” He has highlighted the tendency of business schools to latch onto passing fads in finance theory, which he believes detracts from the essential task of determining the true value of a business.

For Buffett, successful investing hinges on a deep understanding of how to evaluate a business rather than on complex financial models. His critique underscores a broader debate within the investment community about the efficacy of traditional investment education and the importance of practical, fundamental analysis.

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 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.