Berkshire Hathaway-backed BYD’s global presence experienced a significant boost in 2023, with exports soaring by 334.2% to 242,765 units. The company expanded its footprint to over 70 countries on six continents. BYD’s technological prowess, commitment to eco-friendly mobility solutions, and collaboration with global top-tier partners contributed to this success.
Extensive Brand Matrix and Market Response
BYD solidified its position in the global new energy sector with the completion of its brand matrix, including the Dynasty series, Ocean series, DENZA, FANGCHENGBAO, and YANGWANG. Sales of the Dynasty and Ocean series reached 2,877,353 units, reflecting a remarkable 55.3% increase. DENZA, with 127,840 units sold in 2023, witnessed the DENZA D9 emerging as the annual MPV sales champion.
YANGWANG and FANGCHENGBAO, introduced in 2023, garnered positive market responses. YANGWANG U8 became a top seller in the million-level NEV segment, while BAO 5 established a strong presence in the off-road segment.
Continued Commitment to a Greener Future
From leading China’s NEV market to achieving the top global NEV seller status and ranking among the top ten in the global automotive industry, BYD has demonstrated the vast potential of the new energy sector. With a commitment to leveraging technological innovations for a better life, BYD aims to accelerate the transition towards a greener future, contributing to its vision to “Cool the Earth by 1°C.”
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.
Warren Buffett places a significant emphasis on a company’s intrinsic value when making investment decisions. Whether considering the acquisition of an entire company or a partial stake, Buffett believes that understanding the intrinsic value is crucial. The key factor in this assessment is whether a company is undervalued or overvalued, a principle that extends to the broader stock market.
Unlike some might hope for, Buffett dismisses the idea of a straightforward formula for determining valuation. According to him, the complexity of evaluating a company’s worth cannot be distilled into a neat mathematical equation. Speaking at the 2017 Berkshire Hathaway Annual Meeting, Buffett remarked, “It’s not reducible to any formula where you can actually put in the variables perfectly.” He emphasized that the process is far from simple, and it’s not a matter of plugging in one or two formulas to declare a market or a company undervalued or overvalued.
Buffett acknowledged the existence of formulas but stressed that the challenge lies in identifying the right variables to input. It’s not just about having a formula; it’s about discerning the nuances and intricacies that affect a company’s true value. This perspective underscores Buffett’s nuanced approach to investing, where a deeper understanding of the qualitative aspects of a business is crucial alongside any quantitative analysis.
In essence, Buffett’s wisdom suggests that successful investing requires a blend of financial acumen, qualitative judgment, and a keen understanding of the ever-evolving dynamics of the market. While there may not be a magic formula, the pursuit of intrinsic value remains at the heart of Buffett’s investment philosophy, emphasizing the importance of a thoughtful and nuanced approach to valuation in the world of finance.
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.
Berkshire Hathaway has settled its dispute with the Haslem family over the valuation of the remaining 20 percent share of the Pilot Corporation that the Haslems owned.
On Sunday, Berkshire Hathaway announced that “it has reached an agreement to fully settle the Delaware litigation, including all claims and counterclaims, between Pilot Corporation and Berkshire Hathaway Inc., Pilot Travel Centers LLC, and National Indemnity Company.”
The Haslem family had sued Berkshire contending that its change to pushdown accounting had hurt their valuation in regards to Berkshire’s buyout of the remaining 20 percent stake that the Haslems still owned of the travel center company. Berkshire counter sued contending that the Haslems had illegally engaged in a bribery scheme where top executives received payments in exchange for inflating earnings in a manner that would benefit Haslems on the price Berkshire would ultimately pay to the Haslems.
The matter was due to be fought out in two-day trial this week in Delaware court, but the settlement has ended all litigation. No terms of the settlement have been released.
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.
Effective January 1, 2024, the BNSF Railway Company has assumed control of the route previously served by the Montana Rail Link (MRL), marking a significant development in the railway industry. The decision, initially announced in January 2022, represents a shift in operational responsibility that has been in effect since 1987 when MRL secured a lease on the track from BNSF.
Headquartered in Missoula, Montana, Montana Rail Link is a Class II regional railroad overseeing a vast network of over 900 route miles in Montana and Idaho, boasting a workforce of nearly 1,200 employees.
In a January 2022 memo to MRL employees, President Derek Ollmann first unveiled the transition, detailing BNSF’s assumption of operation and maintenance responsibilities. Notably, Ollmann reassured employees that their positions would be maintained under BNSF’s management.
“BNSF operating the line as part of their network will ensure competitive access to global markets while continuing to provide consistent and reliable service for our customers,” Ollmann emphasized in his communication to the MRL team, highlighting the potential benefits of the change.
Ollmann further noted that a substantial 90% of the volume on the MRL route was attributed to BNSF trains, underscoring the significance of the move for both companies.
In a positive development, the Brotherhood of Locomotive Engineers and Trainmen (BLET) approved a new labor agreement in October 2022. According to MRL, this agreement includes negotiated implementing agreements with MRL’s unions, including BLET, offering enhanced benefits beyond the requirements outlined by the Oregon Short Line for MRL employees transitioning to employment with BNSF.
The strategic move by Berkshire Hathaway’s BNSF Railway Company not only signifies a change in the operational landscape but also reflects a commitment to maintaining a robust and competitive railway network, ultimately benefiting employees and ensuring continued service excellence for customers.
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.
Warren Buffett, regarded as one of the greatest investors of all time, has a straightforward message for aspiring investors: you don’t need to be a genius to succeed in the market. While brilliance may not be a prerequisite, Buffett emphasizes a crucial quality that he believes is integral to investment success — discipline.
In a world where financial markets can be complex and unpredictable, Buffett advocates for a disciplined approach. During the 2018 Berkshire Hathaway Annual Meeting, he expressed, “What we do is not a complicated business. It’s got to be a disciplined business, but it doesn’t require a super IQ, or anything of that sort.”
Buffett’s emphasis on discipline stems from his belief that successful investing is not about making flashy or impulsive decisions. Instead, it’s about adhering to a well-thought-out strategy and staying true to one’s investment principles. Discipline, in Buffett’s view, involves sticking to your investment plan even when faced with market volatility or the temptation to chase short-term gains.
The Oracle of Omaha’s own success is a testament to the power of discipline in investing. Throughout his career, Buffett has maintained a long-term perspective, mostly avoiding the allure of quick profits and instead focusing on businesses with enduring value. His disciplined approach involves thorough research, a patient mindset, and a commitment to the fundamental principles of sound investing.
For investors looking to learn from Buffett’s wisdom, cultivating discipline should be a top priority. It involves not stepping outside your own circle of competance, conducting thorough research, and having the patience to weather market fluctuations. While the financial world may be dynamic, the timeless quality of discipline can guide investors through the highs and lows of the market, and their own emotional highs and lows, helping them make informed and rational decisions.
Regardless of one’s level of intelligence, a disciplined approach can be the key to unlocking long-term success in the world of investing.
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.
Berkshire Hathaway Specialty Insurance has recently implemented significant enhancements to its multinational capabilities, marking a strategic move to better meet the evolving needs of its global clientele.
Under the leadership of David Valzania, Head of Multinational at BHSI, the company has expanded its reach by bolstering its partner network, augmenting its internal team of multinational experts, introducing new multinational products, and integrating a cutting-edge technology platform to elevate service standards.
BHSI has grown its partner network extensively, enabling the provision of BHSI-level service in an impressive 178 countries. The internal team of multinational experts has also seen expansion, with dedicated professionals now operating in 13 cities worldwide. Notably, BHSI has diversified its multinational capabilities to now include surety bonds, further enriching its portfolio to address diverse client requirements.
A pivotal advancement in BHSI’s technological landscape is the adoption of WorldLink, a comprehensive digital solution designed for managing and servicing multinational program business. This innovative platform has significantly enhanced workflow efficiency by unlocking bandwidth and ensuring scalability throughout the organization. Remarkably, BHSI now conducts 95% of its multinational business transactions through WorldLink.
Collaborating with London-based insurtech ChainThat, BHSI leveraged the Beyond Multinational Programs platform to conceptualize and develop the WorldLink solution. The distributed ledger-centric nature of ChainThat’s platform contributes to consistency, compliance, and transparency in multinational transactions.
According to David Valzania, this collaboration empowers BHSI to seamlessly coordinate and collaborate across local underwriters, producing offices, and network partners, streamlining the execution of multinational programs.
In essence, these enhancements underscore BHSI’s commitment to delivering best-in-class multinational programs and services. The strategic expansion of its capabilities positions the company at the forefront of the industry, ready to cater to the dynamic and evolving needs of its global customer base and distribution partners.
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.
Cosm, the trailblazing experiential media and immersive technology company, is set to establish its second public entertainment venue at Berkshire Hathaway’s Grandscape in The Colony, Texas.
The announcement comes as part of Cosm’s strategic expansion plans to create a new realm of immersive entertainment known as “shared reality.”
Cosm, founded in 2020 by Mirasol Capital in Dallas, seamlessly blends state-of-the-art technology with physical experiences. The company has strategically acquired businesses in spatial computing, specialty design, engineering, and immersive video production to revolutionize the entertainment landscape.
Under the leadership of CEO Jeb Terry, Cosm has been instrumental in shaping a new category of immersive entertainment. The concept of ‘shared reality’ involves collaborating with global partners to stream live content to physical venues and virtual worlds alike, transcending traditional boundaries.
The decision to establish a venue in North Texas aligns with Cosm’s roots in Dallas and CEO Jeb Terry’s personal connection to the area. The company sees North Texas as a pivotal anchor for its business growth, aiming to contribute to the explosive development in the region.
The venue at Grandscape, one of the largest mixed-use real estate developments in the country, spanning over 400 acres, is poised to become a focal point for immersive experiences. Positioned at the heart of Grandscape’s entertainment area, Cosm’s venue will be strategically located near the popular outdoor stage and lawn.
Grandscape, a Berkshire Hathaway project, is an exceptional outdoor entertainment, dining, and shopping destination in North Texas. Recognized with the 2021 RLI International Award for Most Innovative Entertainment & Retail Project, Grandscape features a unique blend of retail, entertainment, residential spaces, dining options, and attractions.
Cosm’s second venue, designed by Dallas-based architects HKS, promises to be a technological marvel. Equipped with proprietary, best-in-class technology, guests will encounter immersive content across various programming categories, including live sports, entertainment, experiential events, immersive art, and music.
Cosm and TNT Sports are teaming up to bring premium live TNT Sports content to Cosm venues in immersive 8K+ starting in 2024, marking the first time a broadcast rightsholder will present live sports content in Shared Reality. Cosm venues will host a number of premium events throughout the TNT Sports calendar, including select including select NBA on TNT regular season and playoff games (along with TNT’s exclusive coverage of the NBA’s Eastern or Western Conference Finals each year), TNT’s coverage of the Stanley Cup Playoffs, and select U.S. Men’s and Women’s National Soccer Team matches.
Mark A. Williams, FAIA, and Global Director of Venues for HKS express excitement about the partnership, highlighting the evolution in fan experience through fully immersive virtual environments. This aligns with Cosm’s commitment to providing unparalleled content and embedding consumers into events without the need for physical travel.
Earlier this year, Cosm unveiled plans for its first public venue in Los Angeles, California, adjacent to SoFi Stadium and Intuit Dome, marking another significant milestone in the company’s expansion.
The forthcoming Grandscape venue adds another layer to Cosm’s mission, promising a one-of-a-kind immersive experience that merges the virtual and physical realms.
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.
No entrepreneur sets out to run a lousy business, but according to investment guru Warren Buffett, there’s profound wisdom to be gained from such experiences. In Buffett’s view, navigating the challenges of a struggling enterprise offers unparalleled lessons that go beyond the reach of a high IQ.
During the 2017 Berkshire Hathaway Annual Meeting, Buffett emphasized the importance of experiencing the hardships of managing a lousy business firsthand. He remarked, “I really think if you want to be a good evaluator of businesses, an investor, you really ought to figure out a way, without too much personal damage, to run a lousy business for a while.” For Buffett, the insights gained from grappling with the difficulties of a failing venture are invaluable.
Buffett went on to explain that enduring the trials and tribulations of a subpar business provides a unique perspective on the intricacies of entrepreneurship. He stated, “I think you learn a whole lot more about business by actually struggling with a terrible business for a couple of years than you learn by getting into a very good one where the business itself is so good that you can’t mess it up.”
In essence, Buffett advocates for the hands-on, immersive learning that comes from managing a business facing challenges. He believes that this experience equips individuals with a deeper understanding of the complexities of the business world, emphasizing the importance of resilience, adaptability, and strategic decision-making.
So, while no one aspires to run a lousy business, Warren Buffett’s insights underscore the transformative power of facing adversity and emerging stronger on the other side. It’s through these challenges that individuals gain a practical education in business, ultimately becoming more adept evaluators and investors in the long run.
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.
Berkshire Hathaway Specialty Insurance has promoted Jeff Jubera to Head of Surety Claims. He was previously Vice President, Surety Claims, at BHSI.
Jeff joined BHSI as Vice President in 2021 and has more than two decades of surety claims and litigation experience. Prior to BHSI, he was Vice President, Surety Claims, at Intact Insurance Company. During his career he has both developed and managed surety claim operations and served as General Counsel.
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.
In the realm of investing, Warren Buffett reflects on a concept he aptly terms “thumbsucking,” a phrase coined by his long-time partner Charlie Munger. Thumbsucking, as Buffett describes it, occurs when investors hesitate on glaringly obvious opportunities or, more commonly, when they take too modest a position in a stock to reap substantial benefits. These instances, deemed “stakes of omission” by Buffett and Munger, represent missed opportunities and the accompanying opportunity costs.
Addressing this phenomenon at the 2001 Berkshire Hathaway annual meeting, Buffett clarified their perspective on errors. He asserted, “We only regard errors as being things that are within our circle of competence. So if somebody knows how to make money in cocoa beans, or they know how to make money in a software company or anything, and we miss that, that is not an error, as far as we’re concerned.”
For Buffett, an error occurs when they overlook an opportunity within their understanding and fail to take action. Even more frustrating, he notes, is when they do act but in a small, insufficient manner when a more substantial investment was feasible. Munger humorously refers to this situation as Buffett “sucking his thumb.”
Buffett acknowledges instances where Berkshire Hathaway has been guilty of thumbsucking, particularly with businesses well within their comprehension. He identifies various reasons for this, such as starting to buy and then waiting for the price to return to the initial level, among other factors.
The takeaway from Buffett’s insights is clear: Thumbsucking, or hesitating on opportunities within one’s realm of understanding, can lead to missed potential and opportunity costs. Investors are reminded to act decisively when they recognize opportunities, avoiding the pitfall of indecision or insufficient commitment. In the dynamic world of investing, the cost of thumbsucking can be substantial, emphasizing the importance of seizing opportunities with a confident and informed approach.
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.