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Lessons From Warren Buffett

Lessons From Warren Buffett: Choosing the Right Businesses for the Long Term

New businesses are constantly emerging as entrepreneurs launch new ventures in various industries. However, legendary investor Warren Buffett emphasizes the importance of investing in businesses with high barriers to entry—factors that deter competitors from flooding the market.

At the 2012 Berkshire Hathaway Annual Meeting, Buffett explained that industries without significant barriers to entry face intense competition. “In those industries, you better be running very fast,” he said, noting that competitors will quickly analyze and exploit weaknesses or strive to outperform existing players.

For long-term success, Buffett seeks businesses that are protected by factors like brand loyalty, patents, or operational advantages, shielding them from being overwhelmed by new entrants. His advice highlights the value of competitive resilience in sustaining business growth.

Hear Buffett’s full explanation

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© 2025 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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Announcements

Women in Leadership: Intero Announces Major Executive Advancements

(BRK.A), (BRK.B)

Intero, a Berkshire Hathaway affiliate and subsidiary of HomeServices of America, has announced the promotions of Heather Victoria, Alexandria (“Alex”) Kavalaris, and Mia Park. These leadership advancements reinforce Intero’s commitment to fostering strong female leaders and driving company growth.

Heather Victoria, Intero’s longtime Controller, has been promoted to Vice President. With over 30 years of financial experience, she now oversees strategic partnerships alongside company president Scott Chase. She also holds a key finance role within HomeServices of America’s Shared Success Center.

Alex Kavalaris, previously Corporate Counsel, steps into the role of Vice President and General Counsel. A seasoned legal expert, she will continue guiding the company’s legal strategy and providing counsel to Intero’s 1,500 agents. An active contributor to real estate law discussions, she frequently lectures at industry associations.

Mia Park has taken on the position of Broker of Record for Intero and is now an officer of HomeServices of America. Since joining Intero in 2003, Park has led major offices, managed relocation services, and overseen agent training. She now plays a crucial role in daily brokerage operations and compliance.

“These three leaders have been integral to Intero’s success for many years,” said Terry Meyer, Co-Founder and President of Intero. “We look forward to their continued impact as they help shape the future of our brokerage.”

For over two decades, Intero has built a culture of collaboration and excellence. Under its dynamic leadership team, the company remains dedicated to innovation and industry growth.

© 2025 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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CORT

CORT Business Services Promotes J.T. Marcum to Executive Vice President

(BRK.A), (BRK.B)

CORT Business Services, a Berkshire Hathaway company and the nation’s leading provider of furniture rental and transition services, has announced the promotion of Joseph (J.T.) Marcum to Executive Vice President, Corporate Operations and Supply Chain.

Since joining CORT in 2019 as Vice President of Business Strategy, Marcum has played a key role in advancing strategic initiatives in transportation, logistics, and supply chain management. His promotion to Corporate Vice President in 2021 expanded his responsibilities to housewares, product development, freight, logistics, real estate, and contract management. His leadership has significantly improved efficiency, consistency, and profitability across these areas.

“I’m honored to step into this role and continue working alongside such a talented team,” said Marcum. “CORT’s strength lies in its ability to adapt and improve, and I look forward to further optimizing our supply chain and logistics to better serve our clients.”

A dedicated LEAN Manufacturing practitioner, Marcum emphasizes efficiency-driven strategies while maintaining a strong customer focus. In 2023, he earned his Certificate in Production and Inventory Planning (CPIM) from the Association of Supply Chain Management Professionals, further solidifying his expertise.

“J.T. has an exceptional ability to tackle complex challenges and drive meaningful improvements,” said Paula Newell, Chief Operating Officer. “His leadership has already made a measurable impact, and I’m excited to see how he continues to shape CORT’s future.”

A graduate of Ball State University, Marcum is also an active alumni volunteer for Sigma Phi Epsilon. He resides in Brambleton, VA, with his wife, Kristin, and their dog, Brodie. In his free time, he enjoys golfing, traveling, and exploring Northern Virginia’s wine country.

With this promotion, Marcum will report directly to Newell, guiding CORT’s operational and supply chain strategy to ensure continued innovation and customer-focused solutions.

© 2025 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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Value Investing

Lessons From Warren Buffett: Steer Clear of Fading Businesses

Investors are often tempted by the seemingly low prices of shares in declining businesses, especially when these companies pay attractive dividends. However, Warren Buffett strongly advises against this approach, despite starting his career by investing in what he called “cigar butt” businesses—companies offering just a few remaining puffs of profitability.

Buffett emphasizes that focusing on healthier, growing businesses yields better long-term results. “The same amount of energy and intelligence brought to other types of businesses is just going to work out better,” he said during the 2012 Berkshire Hathaway Annual Meeting.

He warned that declining businesses often come with unrealistic projections and limited future potential. “If you really think a business is declining, most of the time you should avoid it,” Buffett noted. Instead, he highlighted that the greatest returns come from investing in companies with solid growth prospects, urging investors to prioritize such opportunities over short-lived bargains.

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2025 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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Johns Manville

Berkshire’s Johns Manville to Add Over 350 Jobs with New Insulation Production Line in Georgia

(BRK.A), (BRK.B)

Johns Manville (JM), a global building and specialty products manufacturer and a Berkshire Hathaway company, has announced plans to build a new Climate Pro blowing wool production line in Winder, GA.

“This new production line in Winder will help JM meet our customers’ growing demand for blowing wool,” said Bob Wamboldt, President and CEO of Johns Manville.

Construction is set to begin early next year, with operations expected to start by mid-2027. Upon completion, JM will employ over 350 people in Winder.

Greg Clarke, President of JM’s Insulation Systems business, emphasized the strategic location, noting that increased capacity in the Southeast will enhance service to East Coast and Central U.S. markets.

Climate Pro blown-in fiberglass insulation provides consistent coverage, filling hard-to-reach spaces for better energy efficiency and comfort in homes. It is widely used in attics and net-and-blow systems, offering quick and efficient installation by professionals.

© 2025 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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BYD

BYD Energy Storage and Saudi Electricity Company Sign Landmark Energy Storage Deal

(BRK.A), (BRK.B)

BYD Energy Storage, a subsidiary of Berkshire Hathaway-backed BYD, has signed the world’s largest grid-scale energy storage project contract with Saudi Electricity Company. The agreement covers a capacity of 12.5GWh, bringing their total cooperation to 15.1GWh, including a previously delivered 2.6GWh project. This milestone significantly advances Saudi Arabia’s renewable energy goals under Vision 2030.

The partnership highlights Saudi Electricity Company’s commitment to integrating advanced energy storage technologies to optimize energy efficiency. The new Battery Energy Storage Systems (BESS) will be installed across five sites, utilizing BYD’s cutting-edge MC Cube-T ESS equipped with CTS (Cell-to-System) technology. With a Vcts index exceeding 33%, the systems will bolster grid stability, support peak energy demands, and facilitate the transition to renewable energy.

With 17 years of expertise in energy storage, BYD has delivered over 75GWh of BESS equipment across 350 projects in more than 110 countries. This latest collaboration marks a new milestone, reinforcing BYD’s leadership in the global energy storage industry.

© 2025 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: Growth Is a Key Component of Value

Amid debates about growth versus value stocks, Warren Buffett emphasizes that growth itself is a form of value. Using GEICO as an example, he explains that projected growth can enhance a company’s assets and, in the case of insurers, its float—provided the growth is predictable.

Speaking at the 2012 Berkshire Hathaway Annual Meeting, Buffett highlighted GEICO’s potential: “I think it’s quite rational to assume a significant underwriting profit at GEICO over the next decade or two, and I think it’s likely that it will have significant growth. Both of those are items of enormous value.”

By adding projected growth to the current float value, Buffett underscores how future expansion can contribute meaningfully to a company’s overall valuation.

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2025 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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Acquisitions

Berkshire’s Marmon Aerospace & Defense Acquires Marine Tech Wire & Cable

(BRK.A), (BRK.B)

Marmon Aerospace & Defense Group, a division of Marmon Holdings, Inc. and a Berkshire Hathaway company, has successfully acquired Marine Tech Wire & Cable, Inc., a specialized manufacturer of circuit integrity cables used in U.S. Navy ships.

Founded in 2000 and based in York, PA, Marine Tech enhances Marmon A&D’s portfolio with its expertise in power, specialty, lightweight, low smoke, silicone, and watertight cabling for mission-critical shipboard applications. The acquisition strengthens Marmon’s ability to provide high-performance solutions with increased capacity and reduced lead times.

Charles Clement, President of Marmon A&D Group, highlighted the benefits of the acquisition, stating that it complements their newly opened Hooksett, NH marine power cable facility. Senior Vice President Robert Canny emphasized that Marine Tech’s expertise aligns perfectly with Marmon’s shipboard product line, enhancing support for Navy ship contracts.

Marine Tech owners Mark Lindsay and Kostanis Contanious expressed enthusiasm for joining Marmon, noting that the partnership will add value for customers. Both will remain with the business to support its ongoing growth.

© 2025 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’s Jazwares Partners with Yo Gabba Gabba! for Global Toy Launch

(BRK.A), (BRK.B)

Berkshire Hathaway’s Jazwares, a leading toy company, has announced a multi-year global licensing agreement to produce an extensive range of toys, costumes, and accessories inspired by the beloved children’s franchise Yo Gabba Gabba!. The agreement was signed with franchise owner Gabbacadabra LLC—co-owned by Yo Gabba Gabba, LLC and WildBrain—and facilitated by Golden Sombrero Licensing.

Under this deal, Jazwares will hold the global master toy rights for Yo Gabba Gabba!, including figures, plush toys, playsets, musical instruments, and Squishmallows, as well as a new line of pet toys and accessories. Additionally, Jazwares will manage North American costume rights for all ages, covering seasonal and dress-up costumes. The new Yo Gabba Gabba! product line is set to launch in 2025.

First premiering in 2007, Yo Gabba Gabba!—created by Christian Jacobs and Scott Schultz—has captivated generations with its mix of music, colorful characters, and animation. Its latest series, Yo Gabba GabbaLand!, debuted in August 2024 on Apple TV+, introducing a fresh world of fun and adventure.

“Yo Gabba Gabba! has inspired millions of kids worldwide, and we’re honored to be part of its next chapter,” said Sam Ferguson, Senior VP of Global Licensing at Jazwares. Co-creator Christian Jacobs added, “Jazwares is an innovative leader, and we couldn’t think of a better partner to bring our characters into kids’ hands.”

With this major partnership, fans can look forward to playing at home with Yo Gabba Gabba! favorites like Muno, Brobee, Foofa, Toodee, and Plex once again.

© 2025 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Minority Stock Positions

Why Warren Buffett is More Bullish Than Ever on Japanese Stocks

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Warren Buffett’s confidence in Japanese stocks remains strong, as Berkshire Hathaway will continue increasing its investments in Japan. In his 2025 annual letter to shareholders, Buffett highlighted Berkshire’s growing commitment to the country, calling it a “small but important exception” to the company’s traditional U.S.-focused investment strategy.

Berkshire’s involvement in Japan began in July 2019, when it first purchased shares in five major Japanese trading houses: ITOCHU, Marubeni, Mitsubishi, Mitsui, and Sumitomo. These firms operate in a manner similar to Berkshire itself—owning stakes in a wide range of businesses both in Japan and globally. Initially attracted by their low valuations, Buffett and Berkshire’s Vice Chairman of Berkshire – Non-Insurance Operations, Greg Abel, have grown increasingly impressed with their capital allocation strategies, management discipline, and shareholder-friendly policies.

A key factor in Berkshire’s admiration for these companies is their prudent approach to capital deployment. Buffett noted that the five firms increase dividends when appropriate, conduct share buybacks when sensible, and exhibit more restrained executive compensation practices compared to their U.S. counterparts. As a result, Berkshire has committed to being a long-term investor and an active supporter of their boards.

While Berkshire originally agreed to keep its ownership stake in each company below 10%, the firms have since agreed to moderately relax this limit, paving the way for further investment. At the end of 2024, Berkshire’s total cost basis in the five firms stood at $13.8 billion, while the market value of its holdings had grown to $23.5 billion—a testament to their strong performance.

In addition to stock investments, Berkshire has also steadily increased its yen-denominated borrowings at fixed interest rates, maintaining a currency-neutral position. While Berkshire does not speculate on future exchange rate movements, GAAP accounting rules require it to recognize currency gains and losses. In 2024 alone, Berkshire recorded $850 million in after-tax gains due to the strengthening U.S. dollar, contributing to a cumulative $2.3 billion currency gain.

Buffett sees Berkshire’s Japanese investments as a long-term commitment, expecting Greg Abel and future successors to hold and expand these positions for decades. Looking ahead, Berkshire also anticipates exploring new ways to collaborate productively with the five companies, strengthening its presence in Japan’s corporate landscape.

With Berkshire’s growing stake and its disciplined investment philosophy, Buffett’s bet on Japan continues to pay off—solidifying his reputation as one of the world’s most patient and strategic investors.

© 2025 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.