Categories
Minority Stock Positions Stock Portfolio

State of California Boosts Pure Electric Short-Haul Trucks

(BRK.A), (BRK.B)

The State of California is awarding $23.6 million to the South Coast Air Quality Management District (SCAQMD) for a statewide zero-emission drayage truck development and demonstration project.

Drayage refers to trucks that haul freight over short distances.

The funds, from the California Climate Investments program, will reduce key criteria pollutants, greenhouse gases (GHG), petroleum usage and toxic pollution where reductions are needed most. They are also designed to accelerate the commercialization of heavy-duty advanced, zero-emission technologies, establishing a path for implementing SCAQMD’s clean air plan currently under development.

The South Coast air district is teaming up with air districts in the Bay Area, Sacramento, San Diego and San Joaquin Valley to make the project a statewide demonstration of 43 zero-emission battery electric and plug-in hybrid drayage trucks serving major California ports. Demonstration trucks and charging infrastructure will be used in all five air districts, providing emission reduction benefits in key areas of California with drayage truck activity.

“This project will help put the very cleanest short-haul trucks to work where they are needed most, moving cargo from the state’s biggest ports to distribution centers and rail yards,” said ARB Chair Mary D. Nichols. “This is good news – and cleaner air – for all Californians, but especially those who live in neighborhoods next to these industrial facilities or along some of our state’s busiest trade corridors.”

This is the first large-scale demonstration of zero-emission Class 8 trucks that involves major manufacturers, including BYD, Kenworth, Peterbilt and the Volvo Group.

The companies receiving funds have the engineering resources, manufacturing capabilities and distribution networks to support commercialization of advanced technologies related to moving freight to and from the ports.

“BYD is proud to work with the California Air Resources Board, South Coast Air Quality Management District and our fleet partners to advance clean, battery-electric transportation solutions in communities where it is needed most,” said Stella Li, president of BYD Motors. “BYD is a worldwide leader in battery technology and as the OEM providing the most battery-electric trucks under this solicitation, I believe other fleets will take notice and recognize that battery-powered drayage trucks are reliable and available for wider deployment today. We look forward to celebrating the delivery of our first battery-electric drayage truck in the fall of this year.”

The grant award is part of a larger statewide investment in low-carbon transportation projects that are pivotal to meeting California’s ambitious goals to reduce GHG emissions, improve air quality, deploy zero-emission vehicles and reduce petroleum dependency by accelerating the development and deployment of advanced vehicle technologies.

This project is part of the California Climate Investments, which use proceeds from the state’s cap-and-trade auctions to reduce greenhouse gas emissions while providing a variety of additional benefits to California communities. The project also supports the Governor’s Executive Order (B-32-15) to ensure the state “transition to zero-emission technologies.”

Freight transport in California is a major economic engine for the state but also accounts for about half of toxic diesel particulate matter (PM 2.5), 45 percent of the emissions of nitrogen oxides (NOx) that form ozone and fine particulate matter in the atmosphere, and 6 percent of all GHG emissions in California.

The SCAQMD is the air pollution control agency for Orange County and major portions of Los Angeles, San Bernardino and Riverside counties.

ARB’s mission is to promote and protect public health, welfare, and ecological resources through effective reduction of air pollutants while recognizing and considering effects on the economy. The ARB oversees all air pollution control efforts in California to attain and maintain health based air quality standards.

BYD’s Pure Electric Buses

BYD has already carved out a major portion of the pure electric vehicle market. In 2015, the company shot to number one worldwide in EV car sales from only 7th in 2014.

It’s also dominating the pure electric bus market, and BYD’s pure electric buses and taxis are currently operating in over 200 cities in 48 countries worldwide, including the U.S., Mexico, Colombia, Brazil, the UK, Germany, Austria, Denmark, Holland, Belgium, Japan, Thailand, and China.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares, and today owns roughly 9.1% of the company.

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

© 2016 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

Dairy Queen Latest to Jump Into Coffee Craze & Launches Happy Hour Campaign

(BRK.A), (BRK.B)

Add Dairy Queen to the list of restaurants pushing a coffee lineup to compete with Dunkin Donuts, Starbucks, and McDonald’s.

The company is also trying to lure customers in at a traditionally slow time of day through a new campaign that focuses on the period between lunch and dinner.

The afternoon-snack daypart is seen by Quick Service Restaurant experts as one of the major growth opportunities in the category, after competition has heated up for breakfast and late-night business.

The Dairy Queen® system is now offering iced coffee and frappés for the first time nationally in the U.S., as a part of the launch of its new campaign called “The Hardest Working Happy Hour,” which makes special prices available weekdays at participating U.S. locations from 2 to 5 p.m.

Dairy Queen is offering its fans the choice of a new Vanilla, Salted Caramel or Mocha flavored Iced Coffee; new OREO®, Caramel Chip or Midnight Mocha DQ Ultimate Frappés; and Strawberry Banana, Tripleberry®, Mango Pineapple and the new Strawberry Watermelon Orange Julius® Premium Fruit Smoothies at one of the best values in the industry.

The small flavored Iced Coffees are only $1, and the small, blended to perfection new DQ Ultimate Frappés and small Orange Julius® Premium Fruit Smoothies are just $2 weekdays from 2 to 5 p.m. at participating locations.

While the beverages are available all day, they are value priced only during Happy Hour.

“This is our biggest beverage launch ever and happy hour is a very competitive day-part across all restaurant brands. We’ve really differentiated ourselves from other QSR and beverage competitor happy hour programs by creating a stir in our space with variety, value and taste,” said Barry Westrum, executive vice president of Marketing for American Dairy Queen Corporation (ADQ).

“Our fans want something different and better and at our DQ locations they can now treat themselves to the unbelievable every day. With our Hardest Working Happy Hour, fans will find quality, portable iced coffee DQ Ultimate Frappés and smoothie beverages at a great price and offered in a uniquely DQ way. It’s an extra indulgence during the day that’s perfect as an afternoon on-the-go pick-me-up.”

In 1998, Berkshire Hathaway acquired Dairy Queen for $585 million in cash and stock. At the time there were 5,790 locations in the U.S. and internationally. There are now some 6,700 locations worldwide.

For an in depth look at Dairy Queen read a Mazor’sEdge special report on Dairy Queen.

© 2016 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

Missouri Latest State to Add BYD’s Pure-Electric Buses

(BRK.A), (BRK.B)

COMO Connect, the public bus system owned by the City of Columbia, Missouri, is expanding its bus fleet by adding zero-emission, all-electric buses into service starting in June to better serve customers and reduce operational costs.

The three (3), 30-ft, low-floor, all-electric transit buses will be supplied by BYD, the world’s largest manufacturer of electric vehicles, with a battery that provides 144 miles per charge and can be recharged in only two to three hours.

The three, all-electric buses will provide significant cost savings in addition to dramatically improving local air quality by eliminating tailpipe emissions. The emissions benefits of operating one all-electric bus are so great that COMO estimates that it is roughly equivalent to removing at least 70 passenger vehicles from the road daily.

Once in service, COMO Connect’s three electric buses will be equivalent to removing 210 passenger vehicles from the road in the community daily.

“These new all-electric buses match COMO Connect’s goals and vision for creating a transportation system for the future in Columbia,” said Drew Brooks, multi-modal manager for COMO Connect.

“We leased an all-electric bus from BYD earlier as a demonstration and were very pleased with the results. The electric buses provided operational and fuel cost savings, were reliable on our service routes, and eliminated emissions thereby helping to improve our local air quality.”

“BYD’s all-electric buses provide a multitude of benefits to operator and passenger,” said Macy Neshati, vice president of Coach and Bus for BYD. “The operator enjoys having a reliable bus that saves money and the passenger enjoys having a quieter, comfortable bus that is helping the environment by eliminating harmful emissions that cause air pollution.” The buses are equipped with BYD-designed and built Iron-Phosphate batteries, delivering 197 kWh of power that come with a 12 year warranty, the industry’s longest electric battery warranty available.

BYD’s pure electric buses and taxis are currently operating in over 200 cities in 48 countries worldwide, including the U.S., Mexico, Colombia, Brazil, the UK, Germany, Austria, Denmark, Holland, Belgium, Japan, Thailand, and China.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares, and today owns roughly 9.1% of the company.

Berkshire’s original investment of $230 million is now worth roughly $1.77 billion.

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

© 2016 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
BNSF

BNSF Makes Management Cuts As It Faces New Coal Reality

(BRK.A), (BRK.B)

With coal and petroleum carloads plunging, BNSF Railway continues to adjust to the new market reality of lower shipping volumes.

The numbers are grim. Coal carloads are down 36.39% year-to-date, and petroleum carloads are down 26.29%.

Total carloads, which includes intermodal has slumped 8.59% this year, as well.

BNSF has responded to the shipping downturn by idling hundreds of locomotives, selective employee buyouts, and laying off 4,600 employees, which represent 10% of the workforce.

Those layoffs now include 62 management positions that come as a result of a realignment that has the Class 1 freight railroad consolidating its operations organization from three regions down to two.

In a statement, BNSF noted that,“Realigning the operations organization responds to the changing business environment and helps us better align resources with our customers’ demand for freight service.”

While the future for crude oil volumes is cloudy at best, BNSF is already making plans for a post-coal world.

“We are seeing a fundamental, structural shift in the coal industry, with double-digit volume declines in the first quarter of 2016 alone and no expectation for a return to previous levels.”

© 2016 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 HomeServices

Berkshire Hathaway HomeServices Sets Sail for International Waters

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices, the United States-based real estate brokerage franchise network owned by Berkshire Hathaway Inc., has set its sights on international expansion beginning in 2017.

The initial focus of the international expansion is in major financial centers around the world, with countries such as China, Canada, Germany, and the United Kingdom being high on the list  Berkshire Hathaway HomeServices’ Chief Operating Officer and President, Stephen Phillips says.

Phillips said that the company is setting up regional offices that will cover Asia, Europe, and South America.

Also key to its expansion plans is the network launch of a powerful, new property-search platform on its popular www.BerkshireHathawayHS.com website; and a listing-syndication program now broadcasting Berkshire Hathaway HomeServices network listings to 70 real estate websites worldwide.

The platform, developed in conjunction with Aliso Viejo, CA-based Real Estate Digital, offers the industry’s most complete search experience for global shoppers of U.S. real estate. With two mouse clicks, consumers may choose to translate the website in any of 10 languages besides English including Chinese, French (European and Canadian), German, Italian, Japanese, Portuguese (Brazilian and European) and Spanish (European and Latin American). The site also seamlessly converts currency and measurements.

Consumers may then search for homes in any U.S. city or state serviced by Berkshire Hathaway HomeServices franchisees. What they find they can’t get on any other single site: full Multiple Listing Service data containing all listings in their search area. By registering on www.BerkshireHathawayHS.com, consumers also gain proprietary “Inside Access” features including the latest pending and sold information, market reports and property-price history.

“Until now, global shoppers of U.S. real estate see only a portion of homes for sale in their searches of states, cities and postal ZIP codes,” explained Gino Blefari, CEO of Berkshire Hathaway HomeServices. “When you register and search for U.S. real estate on our website, you see every property for sale in your search area, and then you can filter and sort those searches as you would on other sites. It’s a much more effective way to begin searches of homes in America.”

“Regardless of nationality, today’s home buyers want as much information as possible to make informed decisions on their real estate investments,” said Stephen Phillips, president of Berkshire Hathaway HomeServices. “Our website and property-search platform are an indispensable resource for any global buyer of U.S. real estate.”

To complement the home-search platform, Berkshire Hathaway HomeServices is now broadcasting its network listings abroad. Most of the residential listings priced at $200,000 (USD) and above are now displayed on 70 real estate websites serving consumers in 37 countries on five continents.

“A key priority in global expansion is to help our existing U.S. franchisees earn more business from beyond our borders,” said Peter Turtzo, senior vice president of International Operations for Berkshire Hathaway HomeServices. “Our investment in these resources will help our network capture international client leads and generate transaction opportunities. These resources will also help our existing franchisees win more domestic listings, and recruit and retain more top sales professionals.”

The international expansion will be growing source of revenue for the company, and Phillips says that he expects Asia to be 5%-10% of that revenue.

© 2016 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
Marmon Group

Cornelius Ready to Showcase Concentrated Beer Dispenser Technology

(BRK.A), (BRK.B)

Cornelius, Inc., the world-leader in beverage dispensing systems, is preparing to showcase its beer dispensing technology that uses beer concentrates that are fully hydrated at the point of dispensing.

Cornelius and Sustainable Beverage Technologies (SBT), a Colorado based developer of concentrated beer technologies, will feature beer being dispensed from concentrate at the 2016 National Restaurant Association trade show in Chicago.

SBT has applied its unique BrewVo brewing technology toward developing a portfolio of beers with three craft brewers to create new beers that are concentrated until served from a Cornelius dispenser. The three craft breweries are New Belgium, Crazy Mountain, and Denali.

According to Cornelius, the combination of SBT’s BrewVo technology and Cornelius dispensers will allow these premium craft brewers to share their products with customers in a more efficient and sustainable manner.

Cornelius, Inc., the world-leader in beverage dispensing equipment, was acquired by Berkshire Hathaway’s Marmon Group in January 2014.

In November 2015, Cornelius and Sustainable Beverage Technologies announced a strategic partnership to market concentrated beer dispensing solutions to beverage brand owners and foodservice retailers across the globe.

According to SBT, using only traditional brewing ingredients (water, malt, hops, and yeast), SBT’s patented BrewVo technology utilizes a unique process called “Nested Fermentation”, in which brewers manage the fermentation environment where a highly concentrated beer is produced. When the beer concentrate is later mixed with carbonated water, the result says SBT compares to any premium beer on the market.

Pat Tatera, CEO and founder of SBT, said: “It’s exciting to work with world class breweries that provide exceptional craft beers, and also have such strong values towards the environment and sustainability.”

Drinking beer make you environmentally responsible. Now, that’s a message that millions of beer drinker will raise a glass to.

And, if you are too young to drink beer, Cornelius has a concentrated milk dispenser technology as well. In 2015 the company partnered with Dairyvative Technologies, a Wisconsin-based developer of a patented process that allows pasteurized milk to be concentrated to a liquid that has one seventh of its original volume.

To learn more about Dairyvative’s breakthrough concentrated milk technology, read the MazorsEdge Special Report: Breakthrough Aims to Change the Way You Drink Milk.

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 Richline Group

Richline Group Acquires Second Company in 30 Days

(BRK.A), (BRK.B)

Things are really hopping at Berkshire Hathaway’s jewelry retailing and manufacturing companies.

Less than a month after it announced the purchase of online jewelry retailer Gemvara, Berkshire Hathaway’s Richline Group has announced it will acquire John C. Nordt, a leading manufacturer and supplier of precious metal products to the jewelry industry.

The acquisition will be completed on June 1, 2016.

Nordt has what it calls a unique and proprietary process of hot extrusion for precious metals. Known as FusionForged®, the technology creates metals of extreme ductility and sound micro structure which permit the creation of products of extreme precision and adaptability to many types of finished products including the setting of diamonds.

Joe Esposito, Richline’s EVP of Manufacturing said that, “Nordt is another important and strategic addition to our brands. The firm’s unique and successful business model is a tribute to the leadership of the Nordt family. The synergies between Nordt and our LeachGarner and Nobilis business units will accelerate our growth into the PGM industrial markets. Nordt has a great product line, talented people and long term relationships with its clients.”

Joe White, President of LeachGarner, A Richline Group Company stated, “The combination of Nordt’s proprietary process technology and LeachGarner’s scale is unique in the precious metal industry. We look forward to integrating our businesses to deliver enhanced value to our existing customer base and leveraging our new synergies outside our traditional channels.”

Founded in 1872 in New York City, Nordt has operated in Roanoke Virginia since 1984, where it has a 45,000 sq. ft. manufacturing plant has been specifically designed to fabricate precious metals products including wedding bands, diamond rings, bracelets and tubing of highest quality under precise control guided by the certification of ISO 9001:2008.

Among the company’s services is private label manufacturing using its FusionForged metals.

Five generations of the Nordt family have led the firm over 140 years. Paul Nordt III, Rob Nordt, Sr. and Rob Nordt, Jr. will continue to lead the company along with a highly experienced professional management team.

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
Fruit of the Loom

Fruit of the Loom Cuts Ribbon on Major South Carolina Expansion

(BRK.A), (BRK.B)

Berkshire Hathaway’s underwear manufacture Fruit of the Loom has cut the ribbon for the opening of its major expansion of its Palmetto Distribution Center in Summerville, South Carolina.

The facility has added 402,000-square-foot to the center’s existing 350,000-square-foot space.

Fruit of the Loom points to increased e-commerce as the main reason for the expansion.

“We’re gearing up and getting ready to do that,” notes Rick Medlin, Fruit of the Loom’s president and CEO. “We’re building platforms and digital capabilities, as is everybody.”

The expanded facility will mean the addition of as many as 50 new employees to the current 225 employees.

The expanded facility will be able to ship up to 60 million packages of underwear a year, using an automated packaging system that designates that shipments for big box retailers such as Walmart.

That’s a lot of boxers and briefs.

© 2016 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

Funnel Cakes to Be Dairy Queen’s New Summer Treat

(BRK.A), (BRK.B)

After extensive product testing, Dairy Queen has decided to roll out a funnel cake dessert at its U.S. locations. A funnel cake is a fried batter staple of carnivals and fairs that is especially popular throughout the Midwest. Usually topped with powdered sugar, Dairy Queen sees it as the perfect base for its soft-serve ice cream.

Dairy Queen has test marketed its funnel cake desserts as part of its DQ Bakes!® Institute, and even flew in food bloggers to its Minneapolis headquarters to get their reactions.

“We do a lot of consumer research and test markets,” notes Dairy Queen’s president and CEO John Gainor.

The 76-year-old company has been aggressively adding to its menu, and in 2015 the company introduced its DQ Bakes! menu with nine products across three categories: Hot Desserts à la Mode, Artisan-style Sandwiches and Snack Melts. DQ locations across the U.S (excluding Texas) installed ovens to make the new menu items.

Gainor also points out that the funnel cakes fit right in with the “fan food” customer experience that Dairy Queen is known for. It’s a loyalty that has brought the company 10,472,082 likes on Facebook.

“A lot of our consumer research focuses on the emotional connection that you take out of the store,” Gainor says.

The new Funnel Cake a la Mode is planned as a year-round, permanent addition to the menu.

For more information read a Mazor’sEdge special report on Dairy Queen.

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

Commentary: Will BYD Be Berkshire’s Alibaba?

(BRK.A), (BRK.B)

No article on Yahoo these days fails to mention the company’s 15% stake in Alibaba. It’s a stock position that has grown so valuable that it’s the tail that literally wags the dog on the valuation of the high-tech company.

Is there an Alibaba in the making for Berkshire Hathaway with Chinese auto and battery maker BYD Company Ltd.?

By that I mean will the value of Berkshire’s share of BYD eclipse the rest of the company?

Well, no, because unlike Yahoo, Berkshire owns assets including insurance companies, railroads, and energy companies that have enormous value.

But, yes, if you are looking for a minority stock position that over time could rival or surpass Berkshire’s huge minority shareholder stakes in Coca-Cola, IBM, or American Express.

How We Got Here

In 2008, at the urging of Berkshire’s Vice-Chairman Charlie Munger, Warren Buffett bet on BYD’s potential, purchasing 225 million shares for $230 million, and today Berkshire owns roughly 9.1% of the company.

It’s a bet that looks better and better every year.

In 2015, BYD became the number one seller of electric cars in the world. It was a dramatic rise for a company that only ranked seventh in 2014.

That’s not all, in April 2016, BYD achieved another major milestone, the production of its 10,000th pure electric bus. The company is thoroughly dominating the rapidly growing market for emissions free buses of all sizes.

An Investment That Eclipses All Others

With a market capitalization of roughly $19.5 billion, that makes Berkshire’s original investment of $230 million worth roughly $1.77 billion.

It’s a phenomenal return in just five years, and BYD’s best days are clearly ahead of it.

Unlike Tesla, which is burning through money, and is in a race to reach ambitious sales goals before it runs out of money, BYD is already profitable.

What’s more, its profits are growing dramatically, despite China’s slowing economy.

BYD is predicting that its first-quarter profit will jump more than 50 percent from the first-quarter 2015. We’re talking profit not just revenue.

Berkshire’s Alibaba-Like Asset

Berkshire’s got some amazing assets, but most of them won’t grow dramatically in the future. GEICO is the second largest auto insurer in the U.S., but its growth at this point will be incremental not logarithmic. Some even question the future of auto insurance with the coming era of self-driving cars. The same goes for BNSF Railway, which as a Class 1 railroad is in a highly regulated industry with only modest growth potential unless anti-trust regulators approve another round of consolidations.

Even the recently completed $37.2 billion acquisition of Precision Castparts, which gives Berkshire an aerospace company poised to take advantage of the growing demand for passenger jets in India and China, has the growth potential of BYD. Precision Castparts will grow based on the estimated need for new aircraft with a total value of $5.6 trillion over the next two decades, but it won’t grow ten-fold.

Unlike these companies, BYD is operating in lightly regulated market sectors. It dominates the pure electric bus market (a market that Tesla isn’t even in), and while it has already sold its 10,000th electric bus, that is still just a drop in the bucket for a total bus market that is expected to reach eight million units by 2018.

In 2018, only a fraction of those buses will be electric, but in another decade or two they all may be, and for good reasons.

Why They Will All Be Electric Buses

Why will they be electric buses? Because they will have to be. In order for cities to meet ambitious carbon emission reduction goals, existing diesel and even hybrid buses will have to be phased out. The pollution numbers tell the tale. In countries like China and India, buses make up a huge percentage of their air pollution.

In China alone, diesel buses make up just 10% of the vehicles on the road but contribute over 30% of city air pollution and GHG emissions.

Visionary Leadership That’s Making BYD Number One

As for leadership, Tesla’s Elon Musk is clearly already one of the most fascinating corporate visionaries of the 21st century, but don’t forget that Charlie Munger hailed BYD’s CEO Wang Chuanfu as “a combination of Henry Ford, Thomas Edison and Bill Gates.”

He’s already one of China’s richest men.

While Elon Musk has lots of amazing ideas, including hyperloops, and trips to Mars, many of them don’t have a clear path to profitability. Wang Chuanfu has a goal of being number one, and he’s already there.

BYD’s number one in globally in electric car sales, number one in electric bus sales, and they are the world’s largest manufacturer of rechargeable batteries.

BYD is electrifying forklifts, trucks, and a host of other fossil fuel burning vehicles and devices.

They are also building and home scale eclectic battery storage that’s already on the market in Europe and Africa. Tesla gets a lot of attention for their Powerwall, but BYD is in the same market with their B-Box technology.

Berkshire’s $230 million bet on BYD may prove to be its best bet of all-time, as BYD grows into a a global leader that is mentioned in the same breath as Volkswagen and Toyota.

And, since unlike those auto companies it is also involved in IT, photovoltaics, and commercial and residential battery storage, it may just end up being the biggest one of all, which would be very good for Berkshire Hathaway.

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

© 2016 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.