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Lubrizol

Berkshire Hathaway Sells Lubrizol Particle Sciences Business

(BRK.A), (BRK.B)

Warren Buffett’s Berkshire Hathaway, known for its strategic acquisitions, has gone the other direction with the sale of Lubrizol Life Science business group Inc. from its portfolio.

The buyer, Agno Pharma, which purchased the company from Berkshire’s The Lubrizol Corporation, is a prominent US-based global pharmaceutical contract development and manufacturing company, is set to leverage this acquisition to enhance its capabilities and services.

The acquisition encompasses the drug product formulation technology associated with Particle Sciences Inc., as well as its development and manufacturing site located in Bethlehem, PA, which employs approximately 65 professionals.

The sale of the unit is a reverse for Lubrizol, which in 2019 had incorporated Particle Science into its Lubrizol Life Science business group. At that time, Lubrizol had also acquired Bavaria Medizin Technologie GmbH, a German contract development and manufacturing organization of intravascular and nonvascular devices.

Particle Sciences, established in 1991, specializes in pre-clinical and clinical stage drug product formulation, offering a comprehensive range of services, including analytic, bioanalytic, physical characterization, and manufacturing. The company excels in handling poorly soluble and highly potent compounds in both sterile and non-sterile environments.

Agno Pharma’s move to acquire Particle Sciences aligns with its strategy to broaden its capacity and capabilities in drug product formulation and clinical manufacturing services on a global scale. The acquisition positions Agno to make significant investments in clinical-scale manufacturing services, expanding from sterile liquid manufacturing and filling to the micronization of sterile powder filling capabilities.

© 2023 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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GEICO

GEICO Teams Up with Netflix’s Leo for Unprecedented Co-Branded Campaign

(BRK.A), (BRK.B)

In a groundbreaking collaboration, Berkshire Hathaway’s auto insurance giant, GEICO, has joined forces with Netflix to launch a unique advertising campaign featuring the iconic GEICO Gecko alongside the animated star of Netflix’s latest hit, Leo.

The animated feature, Leo, recently made its debut on Netflix and swiftly ascended to the coveted #1 spot on the global top 10 list. Capitalizing on the film’s success, GEICO’s ad campaign integrates the beloved GEICO Gecko, offering advice and insights to the animated lizard sensation, Leo.

What sets this campaign apart is the active involvement of the GEICO Gecko in the production process. The charming green spokesperson was seen consulting on-set, providing guidance on a myriad of topics, ranging from delivering stellar performances in front of the camera to achieving the perfect lighting for the distinctive lizard scales to ensure they pop on screen.

This innovative collaboration was made possible through a strategic partnership between The Martin Agency’s newly established Martin Entertainment division and Netflix’s Marketing Partnerships team. The campaign also received crucial media support from GEICO’s designated media agency, IPG Mediabrands.

The fusion of GEICO’s marketing prowess with the entertainment expertise of The Martin Agency and Netflix’s creative team has resulted in a campaign that not only captures the spirit of Leo but also elevates the synergy between two iconic brands. As streaming platforms and advertisers continue to explore new avenues for engagement, this co-branded campaign sets a precedent for innovative and captivating collaborations in the ever-evolving landscape of entertainment and advertising.

© 2023 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: The Folly of Obsessing Over Market Direction

In the fast-paced realm of financial news, where stock indices can experience dramatic fluctuations in the blink of an eye, it’s easy to become entranced by the market’s unpredictable dance. However, if we aspire to emulate the legendary Warren Buffett, he steadfastly advises against succumbing to this alluring spectacle. According to Buffett, the capricious nature of the stock market holds little significance for successful investing.

During the 1999 Berkshire Hathaway annual meeting, Buffett emphasized his and Charlie Munger’s approach: “Charlie and I don’t think about the market. And Ben (Graham) didn’t very much. I think he made a mistake to occasionally try and place a value on it.” For Buffett, the key to successful investing is to transcend the tumultuous fluctuations of the market and focus on the essence of individual businesses, where true value resides.

Buffett’s philosophy encourages investors to view stocks not as mere entities with fluctuating prices on paper but as integral parts of businesses. He and Munger prioritize a deep understanding of individual companies, their operations, and their long-term potential. By doing so, they avoid being swayed by short-term market whims and focus on the enduring value that businesses can generate.

In essence, the sage advice from Warren Buffett is to look beyond the noise of market fluctuations and concentrate on the fundamentals of the businesses in which one invests. By adopting this perspective, investors can navigate the ever-changing financial landscape with a steady hand and a focus on long-term success.

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2023 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

Berkshire Hathaway’s Grandscape Unveils Interactive Great Big Game Show

(BRK.A), (BRK.B)

In North Dallas, Berkshire Hathaway’s Grandscape is transforming into a hub of entertainment, and its latest addition, the Great Big Game Show, promises an immersive experience that will have its participants feeling like TV game show stars.

Located in the Dallas-Fort Worth development that includes Berkshire’s Nebraska Furniture Mart, on the sprawling 433-acre Grandscape, this real-life, interactive game show invites participants to become contestants in a thrilling competition.

Picture two teams battling it out on a fully decked-out sound stage adorned with dazzling lights, energizing music, and a colossal wheel reminiscent of beloved game shows. The lively atmosphere is further enhanced by the presence of a live host, guiding participants through rounds of trivia, chance, and challenges. What sets Great Big Game Show apart is that it offers all the excitement of a televised game show without the pressure of a global audience; it’s an exclusive experience shared only with your family, friends, or co-workers.

Grandscape’s commitment to providing unparalleled entertainment experiences doesn’t stop there. The 433-acre property continues to evolve with the addition of entertainment and resort-like venues. It already includes Galaxy Theatres, Andretti Indoor Karting & Games, Sixes Social Cricket, The Escape Game, Immersive Gamebox, and the 200-foot observation wheel, the Grandscape Wheel.

Additional entertainment venues planned for 2024, include golf-themed PopStroke, an experiential golf and casual dining concept, and Fritz’s Adventure, an indoor and outdoor family attraction where visitors of all ages and abilities can climb, tunnel, jump, run, slide, rappel, and zip through more than 100,000 square feet of explorable space.

If meditative relaxation is more your style, WorldSprings, a nine-acre haven is currently under construction. This ambitious venture aims to blur the lines between a wellness spa and an amusement park, promising visitors an extraordinary blend of relaxation and excitement. Scheduled to open its doors in spring 2024, WorldSprings is set to redefine the concept of leisure, offering a unique and refreshing escape for all who venture into its boundaries.

As Grandscape evolves into a multifaceted destination, the combination of the Great Big Game Show and the upcoming WorldSprings project underscores its commitment to delivering diverse and unforgettable experiences for visitors of all ages. With these additions, Grandscape solidifies its position as a must-visit destination, providing a perfect blend of entertainment, leisure, and innovation.

© 2023 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

OXY Dividend Increase to Pour More Money Into Berkshire’s Coffers

(BRK.A), (BRK.B)

Energy producer Occidental, in which Berkshire Hathaway holds a significant 25.78% stake, has recently announced a substantial 22.2% increase in its quarterly dividend. The move reflects Occidental’s commitment to enhancing shareholder value and aligns with the company’s strategic focus on delivering strong returns to investors.

Starting with the February 2024 declaration, Occidental will raise its quarterly common stock dividend per share by $0.04, reaching a new figure of $0.22.

As of October 26, Berkshire Hathaway owned an impressive 228,051,027 shares in the energy giant. Consequently, the dividend increase will result in an additional $9.1 million payout to Berkshire Hathaway in the upcoming quarter.

The dividend increase comes as Occidental on Monday announced it entered into a purchase agreement to acquire Midland-based oil and gas producer CrownRock L.P., a joint venture of CrownQuest Operating LLC and Lime Rock Partners, for cash and stock in a transaction valued at approximately $12.0 billion, including the assumption of CrownRock’s debt.

According to Occidental, the debt-funded acquisition is expected to deliver increased free cash flow on a diluted share basis, including $1 billion in the first year based on $70 per barrel WTI. The purchase of CrownRock L.P. will add to Occidental’s premier Permian portfolio with the addition of approximately 170 thousand barrels of oil equivalent per day (Mboed) of high-margin, lower-decline unconventional production in 2024, as well as approximately 1,700 undeveloped locations.

© 2023 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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Kraft Heinz

Kraft Heinz Greenlights $3 Billion Share Repurchase Program

The Kraft Heinz Company, backed by Berkshire Hathaway, has given the green light to a significant share repurchase program. The plan authorizes the company to buy back up to $3 billion of its outstanding common stock by December 26, 2026.

Under this share repurchase initiative, Kraft Heinz aims to use excess cash after allocating funds for disciplined capital spending. This includes investments to support organic growth in strategic areas of its business, the payment of a competitive dividend, maintaining a targeted Net Leverage of approximately 3.0x, and evaluating various strategic opportunities such as acquisitions, divestitures, and partnerships.

Miguel Patricio, CEO, and Chair of the Board at Kraft Heinz, emphasized the company’s recent transformation milestones in the third quarter. He stated, “In the third quarter, we hit a milestone in our transformation — reaching our targeted Net Leverage of approximately 3.0x. A stronger balance sheet, along with advancements we have made across the business, gives us further conviction behind our strategy and the belief that company shares are an attractive investment opportunity.”

© 2023 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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Lessons From Warren Buffett

Lessons From Warren Buffett: The Temptation of Shorting Stocks — Buffett’s Wise Advice

In the unpredictable world of stock markets, the temptation to short a company’s stock when it appears overvalued can be strong. However, investing legend Warren Buffett offers a cautionary perspective on this risky strategy.

Buffett, renowned for his successful long-term investment approach, has repeatedly advised against short selling. Speaking at the 2001 Berkshire Hathaway Annual Meeting, he described short selling as “an interesting item to study because it’s, I mean, it’s ruined a lot of people. It’s the sort of thing that you can go broke doing.”

One of the key reasons Buffett discourages short selling is the inherent risk involved. Unlike buying a stock with a capped loss (the amount invested), short selling exposes investors to unlimited losses. This crucial distinction, according to Buffett, makes shorting considerably different from being long on an investment that has already been paid for.

Buffett’s reluctance to engage in short selling is grounded in the observation that overvalued stocks tend to be more prevalent than undervalued ones. He notes, “You see way more stocks that are dramatically overvalued in your career than you will see stocks that are dramatically undervalued.”

This advice from one of the most successful investors of all time serves as a reminder to investors to tread carefully when considering short selling. While the potential gains may seem enticing, the risks associated with unlimited losses should give pause. Buffett’s timeless wisdom suggests that, in the ever-changing landscape of the stock market, a prudent and patient approach to long-term investing may be a more reliable path to success.

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2023 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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Jazwares

Berkshire Hathaway’s Jazwares Teams Up with H&M for Exclusive Squishmallows Fashion Collection

(BRK.A), (BRK.B)

In a groundbreaking collaboration, global toy giant Jazwares, a subsidiary of Berkshire Hathaway, and the company behind the beloved Squishmallows, is joining forces with international fashion brand H&M to unveil an exciting apparel and accessories line inspired by the iconic plush phenomenon.

The collection is set to debut online on December 7, with a global in-store release following on December 21. This marks the inaugural partnership between H&M and Squishmallows, propelling the plush sensation into the realm of high-fashion and solidifying its status as a premier global lifestyle brand.

“Squishmallows is loved by many kids around the world, and we are so excited to be offering a unique collection to all Squishmallows fans,” enthuses Sofia Löfstedt, Head of Creative and Design at H&M Kids.

Crafted with the signature plush softness that defines Squishmallows, the 42-piece collection caters to kids and tweens and boasts a diverse array of apparel and accessories. From cozy slippers and pajamas to trendy t-shirts, dresses, ear muffs, and hoodies, the line encapsulates the essence of the huggable Squishmallows characters.

Each fashion-forward item embodies the distinct personalities of the lovable plush toys, ensuring that the collection is as irresistibly cuddle-worthy as the Squishmallows themselves. Notably, the H&M collaboration introduces ‘Rodry,’ a yellow bearded dragon Squishmallows plush sporting an all-new look.

“Partnering with H&M, a global force in fashion, allows us to authentically translate the world of Squishmallows into stylish apparel and accessories we know consumers will love,” affirms Sam Ferguson, Senior Vice President of Licensing at Jazwares. “We are steadfast in our vision to expand Squishmallows into a full 360-degree lifestyle brand and are eager for fans to add this epic collection to their wardrobes.”

In the past year, Jazwares has strategically worked towards elevating Squishmallows into a comprehensive lifestyle brand through collaborations with top-tier partners in the realms of fashion, gaming, and various lifestyle categories. This collaboration with H&M adds to the illustrious portfolio of over 70 best-in-class licensees, positioning Squishmallows as a cultural and fashionable force to be reckoned with. As the holiday season approaches, the Squishmallows x H&M collection promises to be a must-have for fans seeking to infuse their wardrobes with the charm and playfulness that defines the Squishmallows brand.

© 2023 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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Jazwares

Jazwares Expands With Australian Toy Distributor Big Balloon Acquisition

(BRK.A), (BRK.B)

Berkshire Hathaway’s Jazwares, a prominent global toy company, has expanded its reach by acquiring Big Balloon, Australia’s leading full-service toy distributor. With over 12 years of experience, Big Balloon has played a crucial role in the Australian toy industry, fostering both big and small brands through strategic partnerships with major and independent retailers.

Judd Zebersky, the Founder and CEO of Jazwares, emphasized the significance of the Australian market, a thriving $1.7 billion industry. The acquisition of Big Balloon is seen as a strategic investment in Jazwares’ future global growth, establishing a strong foothold in Australia. Zebersky praised Chris Loverso, Co-Founder of Big Balloon, as an excellent manager and welcomed him and his team to the Jazwares family.

Jazwares Australia is poised to make a lasting impact on the toy industry, focusing on the company’s brands and business. According to Zebersky, the team’s dedicated approach will bring value to retail partners and consumers alike. Arthur Ferreira, Senior Vice President of International Sales and Marketing, highlighted the eight-year collaboration between Jazwares and Big Balloon, expressing the intention to strengthen local relationships with global licensing partners and enhance connections with end consumers.

Chris Loverso, who will now serve as Managing Director of Jazwares Australia, emphasized the natural evolution of the partnership, citing shared cultural alignment and a mutual passion for brands. Loverso sees the collaboration as an opportunity to leverage their extensive experience in the Australian marketplace to contribute to the growth of Jazwares brands and support longstanding partners in the region. The union of the two companies as team members marks a significant step forward in delivering value and expanding their market presence in Australia.

© 2023 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 Surpasses 6 Million NEVs

(BRK.A), (BRK.B)

Berkshire Hathaway-backed BYD achieved a historic feat with the production of its 6 millionth new energy vehicle, which rolled off the line November 24 at its Zhengzhou factory. This milestone, reached in just three months after surpassing the 5 millionth mark, sets a new record and underscores BYD’s unwavering commitment to pioneering advancements in the electric vehicle industry.

The 6 millionth new energy vehicle, a BAO 5, is a super hybrid hardcore SUV introduced under BYD’s specialized sub-brand, FANGCHENGBAO.

BYD has been actively expanding its global presence since 2010, focusing on public transit electrification by introducing new energy buses and taxis. Over the past decade, BYD’s electric public transport solutions have made a significant impact, operating in more than 400 cities across over 70 countries. The company’s wide-range of new energy businesses includes automobiles, rail transit, new energy, and electronics, with over 30 industrial parks in China, the United States, Canada, Japan, Brazil, Hungary, and India. This sustained effort highlights BYD’s dedication to sustainable transportation solutions on a global scale.

© 2023 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.