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Pilot Flying J

Pilot Adding 10 New Travel Centers in 2024

(BRK.A), (BRK.B)

Pilot Travel Centers LLC, a subsidiary of Berkshire Hathaway, is gearing up for significant expansion and improvement in 2024. With plans to add 35 new travel centers and revamp over 75 existing locations, the company is committed to enhancing its services and presence across the United States.

The expansion efforts include the construction of 10 new travel centers, which will not only increase the company’s footprint in various states but also offer additional amenities and over 500 truck parking spaces. Furthermore, the addition of 25 dealer locations to the network will enable drivers to access more stops eligible for Pilot Travel Centers LLC’s loyalty perks and programs.

Allison Cornish, Senior Vice President of Store Modernization and Development at Pilot Travel Centers LLC, emphasized the company’s focus on community expansion and service enhancement. She highlighted the significant investments being made to ensure an exceptional experience for drivers at every stop along their journey.

In alignment with its New Horizons initiative, the company plans to renovate an additional 75 locations this year, bringing the total number of remodels to nearly 200 since the program’s launch in 2022. These renovations will include upgrades such as refreshed restrooms, expanded food and beverage options, and updated technology, aiming to provide a modern and comfortable environment for customers.

Moreover, Pilot Travel Centers LLC is enhancing its maintenance and tire services through its partnership with Southern Tire Mart. With plans to add more than 30 shops to its travel centers over the next year, the company aims to provide top-of-the-line services to its trucking customers, bringing the total number of locations to over 85 nationwide.

© 2024 David Mazor

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

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Lessons From Warren Buffett

Lessons from Warren Buffett: Look for Haystacks, Not Needles

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Warren Buffett has a clear strategy when it comes to choosing companies to invest in. Unlike the common perception of searching for hidden gems, Buffett prefers opportunities that are unmistakable and easily discernible. In his own words at the 1994 Berkshire Hathaway Annual Meeting, he expressed, “We’re not looking for needles in haystacks or anything of the sort. You know, we like haystacks, not needles, basically, and we want it to shout at us.”

Buffett’s approach emphasizes clarity and simplicity. He seeks investments where the potential is glaringly obvious. This philosophy has guided his successful investment career, focusing on companies with strong fundamentals and clear growth prospects, not speculative leaps of faith.

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance

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Lubrizol

Lubrizol Appoints Bhavana Bindra as Managing Director – India, Middle East and Africa

(BRK.A), (BRK.B)

Bhavana Bindra has been appointed as the Managing Director for India, Middle East & Africa (IMEA) at The Lubrizol Corporation, a subsidiary of Berkshire Hathaway. This newly created role reflects Lubrizol’s dedication to achieving ambitious growth targets and sustaining its presence in the region.

With more than twenty years of experience in the manufacturing industry, including roles at esteemed companies like REHAU and Cummins India, Bhavana brings a wealth of leadership and industry expertise to her new position. Her appointment signals Lubrizol’s strategic intent to leverage her skills to drive growth across the IMEA region.

In her role as Managing Director, Bhavana will lead Lubrizol’s IMEA team in delivering regional growth opportunities for both the company and its customers, utilizing a local-for-local approach. Collaborating closely with Lubrizol’s leadership, Bhavana will focus on identifying localized market opportunities and strengthening relationships with customers, suppliers, and stakeholders in the region. Additionally, she will oversee the operations of Lubrizol’s new Global Capability Center in Pune, India, which will serve as a key regional hub enhancing the company’s capabilities for further growth.

JT Jones, Senior Vice President of High Growth Regions at Lubrizol, expressed excitement about the appointment, emphasizing Lubrizol’s commitment to supporting customers and partners in the India, Middle East, and Africa regions. He highlighted the exceptional talent present across the region and affirmed Lubrizol’s plans to expand its team and footprint to better serve local markets.

This appointment aligns with Lubrizol’s broader commitment to the region, including a substantial $150 million investment in India aimed at accelerating growth. Notably, this investment encompasses the construction of a cutting-edge CPVC resin plant in Vilayat, India, slated to become the world’s largest CPVC resin plant upon its completion in 2025.

© 2024 David Mazor

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

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CORT

CORT Boosts Paula Newell to COO

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Berkshire Hathaway’s CORT Furniture Rental has promoted Paula Newell, the company’s Executive Vice President, to the position of Chief Operating Officer (COO), effective immediately. This appointment underscores CORT’s commitment to fostering internal talent and recognizes Paula’s outstanding contributions to the organization.

In her new role, Paula will be responsible for overseeing all operational aspects of CORT Furniture and will continue to report directly to CEO and President, Mike Davis. With a strong background in both sales and operations, Paula is uniquely positioned to understand both customer needs and those of our business. She brings a people-first approach to her leadership, emphasizing guidance, support, and vision while driving accountability and results.

“Paula’s promotion to Chief Operating Officer underscores her exceptional leadership qualities, and unwavering commitment to our people, values and vision,” stated CEO and President, Mike Davis.

Paula has been with CORT since 1998, holding various leadership roles such as assistant district general manager, district general manager, area manager, regional vice president of sales, and vice president of national accounts.

Most recently, she served as the executive vice president of operations for the U.S., where she provided oversight for all furniture rental and outlet operations across the company.

“I am deeply honored and excited to take on the role of COO,” said Paula, “This promotion is a testament to the incredible team, culture, and vision we have at CORT. I look forward to continuing to drive our operational excellence and customer-centric approach, ensuring we remain the industry leader in furniture rental solutions.”

Before joining CORT, Paula was the operations, sales, and merchandising manager for Levitz Furniture on the West Coast. She holds a Bachelor of Arts degree from California State University San Bernardino.

CORT is the nation’s leading provider of transition services, including furniture rental for home and office, event furnishings, destination services, apartment locating, touring, and other services. With more than 100 locations including offices, distribution centers, furniture rental showrooms, and furniture outlets across the United States, operations in the United Kingdom, and a global network of partners in more than 80 countries around the world.

© 2024 David Mazor

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

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Minority Stock Positions

A Berkshire Winner: DaVita Rockets to All-Time High!

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Berkshire Hathaway, the renowned investment conglomerate led by Warren Buffett, is often celebrated for its strategic investments in household names like Apple, Bank of America, American Express, and Coca-Cola. However, one lesser-known gem in its portfolio is its nearly 40 percent ownership stake in DaVita, a leading global healthcare company specializing in kidney care.

DaVita operates dialysis centers across the United States and in 10 other countries, solidifying its position as a key player in the healthcare industry. As of December 31, 2023, Berkshire Hathaway held a substantial 36,095,570 shares of DaVita, making it one of the company’s top domestic holdings.

The investment has proven highly lucrative for Berkshire Hathaway, with DaVita’s stock surging over 7 percent on March 5, 2024, reaching an all-time high of $134.65 per share. This remarkable performance has been driven in part by DaVita’s aggressive share buyback program, which has effectively increased Berkshire Hathaway’s stake in the company without requiring additional investment.

DaVita’s impressive financial performance further underscores its importance in Berkshire Hathaway’s investment strategy. With a one-year return of 67.89 percent and a five-year return of 169.57 percent, DaVita stands out as one of Berkshire’s top-performing investments.

In discussions about Berkshire Hathaway’s patient and strategic approach to investing, DaVita should not be overlooked. Its success highlights the value of thorough research and long-term investment strategies in achieving substantial returns in the ever-evolving landscape of the stock market.

© 2024 David Mazor

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

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Johns Manville

Greg Abel Stepping Down From Kraft Heinz Board

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Berkshire Hathaway-backed The Kraft Heinz Company recently made headlines with the announcement of a significant change in its Board of Directors. Greg Abel, Co-Chairman of Berkshire Hathaway, has decided to step down from his position on the Kraft Heinz Board. This move comes without any reported disagreements, as clarified by the company in a recent statement.

Berkshire Hathaway, known for its substantial 26.8% stake in Kraft Heinz, remains closely involved in the company’s affairs. In the upcoming re-election process, two executives from Berkshire Hathaway, Timothy Kenesey and Alicia Knapp, will be considered for continued positions on the board.

© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and Kraft Heinz, 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: Investing for Peace of Mind

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Warren Buffett, one of the most renowned investors of our time, has long championed a philosophy of investing that prioritizes not just financial returns, but also peace of mind. His endorsement of index funds, particularly those tracking the S&P 500, stems from this belief, especially for novice investors who may be susceptible to anxiety or outside pressures pushing them towards risky ventures.

In his own words at the 2017 Berkshire Hathaway Annual Meeting, Buffett articulated his criteria for the ideal investment, emphasizing the importance of minimizing worry and external interference. He highlighted the significance of ensuring that investments provide a sense of security and stability, rather than solely focusing on maximizing profits. Buffett even went as far as suggesting index funds as a suitable option for his wife, stressing the paramount importance of her financial tranquility over excessive wealth accumulation.

Buffett’s perspective on investing for peace of mind is underscored by a poignant anecdote involving his elderly aunt, Katie. Despite amassing a substantial fortune due to her association with Berkshire Hathaway, Aunt Katie remained concerned about the possibility of running out of money, seeking reassurance from Buffett himself. His response, delivered with characteristic wit, encapsulates the essence of his investment philosophy: longevity should not be a source of financial anxiety, and prudent investment choices can alleviate such concerns.

Through his advocacy for index funds and emphasis on long-term financial security, Warren Buffett imparts a valuable lesson to investors of all levels: true wealth extends beyond monetary gains to encompass a sense of tranquility and confidence in one’s financial future.

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2024 David Mazor

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

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McLane

McLane Debuts Emerging Brands Program

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Berkshire Hathaway-owned McLane Company Inc., a major distributor and trusted partner to retail and restaurant brands across the US, has introduced a game-changing initiative: Emerging Brands. This innovative platform allows convenience store owners to swiftly broaden their product range with new, inventive, and trending brands.

Vito Maurici, McLane’s customer experience officer, emphasized the evolving preferences of today’s consumers, who seek personalized shopping experiences. Emerging Brands caters to this demand with its adaptable model, offering retailers of all sizes a top-notch platform to tap into the growing desire for unique products.

McKinsey & Company research highlights that a significant portion of shoppers actively seek out new brands and products. Emerging Brands responds to this trend by providing retailers access to a diverse array of offerings, including local, new-to-market, small-batch, and values-driven products not typically available through traditional distribution channels. These products span popular categories like alternative snacks, salty and sweet snacks, and packaged sweets and candy.

Moreover, Emerging Brands facilitates rapid product testing with minimal order requirements, streamlined processing, and warehouse-less drop shipping, all seamlessly integrated with McLane’s existing order and payment systems. Powered by technology partner Mable, the digital marketplace offers intuitive browsing features such as location-based searches, dietary preferences, brand values, and category sorting. Customers can also curate their favorites and receive personalized product recommendations based on their preferences.

Arik Keller, founder and CEO of Mable, underscored the partnership’s aim to create a seamless eCommerce platform connecting emerging brands with retailers. The drop ship model, coupled with integration with McLane’s product systems, ensures a hassle-free procurement process akin to ordering from McLane’s warehouse brands.

McLane’s commitment to providing tailored solutions for retail and restaurant clients encompasses everything from ordering and fulfillment to equipment and in-store merchandising. This initiative aims to empower smaller retailers while addressing logistical challenges faced by larger chains, ultimately enhancing the retail landscape with diverse and innovative offerings.

© 2024 David Mazor

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

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BYD

Berkshire Hathaway-Backed BYD Looking to Double Buybacks

(BRK.A), (BRK.B)

BYD, the Chinese automaker backed by Berkshire Hathaway and renowned for its electric vehicles (EVs), has surged ahead in the global market, surpassing Tesla as the leading manufacturer of new energy vehicles in 2023. Now, the company is poised for further growth as it announces plans to double its share repurchases.

The decision to ramp up share buybacks underscores BYD’s commitment to rewarding its stakeholders while strategically managing its capital structure. These repurchases will primarily support employee stock options, share incentives, and potentially reduce the company’s outstanding share capital.

BYD’s expansion isn’t limited to financial maneuvers; the company has been aggressively introducing EV models across various international markets. In February, Indonesia welcomed three new pure electric models from BYD: the ATTO 3, DOLPHIN, and SEAL. This move signifies BYD’s commitment to providing innovative and sustainable transportation solutions globally.

Looking ahead, BYD is gearing up for significant investments in production facilities in Indonesia, signaling its intent to strengthen its presence in Southeast Asia. This strategic move aligns with BYD’s broader strategy of expanding its manufacturing footprint to meet growing global demand for electric vehicles.

The momentum behind BYD’s success is undeniable. In 2023 alone, the company achieved annual new energy vehicle sales exceeding 3 million units, solidifying its position as the global leader in this rapidly evolving market segment. With its EVs now available in over 400 cities across 70 countries and regions, BYD’s influence continues to grow on a global scale.

As the world transitions towards a greener future, BYD stands at the forefront, driving innovation and redefining the automotive landscape. With its ambitious growth plans and unwavering commitment to sustainability, BYD is poised to maintain its status as a trailblazer in the new energy vehicle industry for years to come.

© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance

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Precision Castparts

Precision Castparts Corporation Has Strong 2023 With 22.7% Revenues Growth

(BRK.A), (BRK.B)

Berkshire Hathaway’s subsidiary, Precision Castparts Corporation (PCC), reported robust financial results for the fiscal year 2023, showcasing significant growth and resilience in its operations.

In 2023, PCC’s revenues surged to $9.3 billion, marking a notable increase of $1.7 billion or 22.7% compared to the previous year. This impressive growth was primarily fueled by heightened demand for aerospace products, which form a substantial part of PCC’s revenue stream. Additionally, contributions from power/energy and general and industrial products also played a role in driving overall revenue growth.

The surge in demand for aerospace products aligns with long-term industry forecasts, which project sustained growth and robust demand for air travel and aerospace products. This bodes well for PCC’s future revenue streams and underscores its strategic position in a dynamic market.

Furthermore, PCC’s pre-tax earnings in 2023 stood at $1.5 billion, representing a notable increase of 30.0% compared to 2022. The improved financial performance in 2023 can be attributed to increased sales and enhanced manufacturing and operational efficiencies within its aerospace businesses. However, it’s worth noting that operating losses in energy products businesses partially offset these gains.

Looking ahead, PCC remains committed to enhancing manufacturing efficiencies, prioritizing safety measures, and gearing up to meet the escalating demand for its products. By focusing on these key areas, PCC aims to solidify its position as a leading provider of precision components in the aerospace and related industries.

Overall, Precision Castparts continues to demonstrate resilience and growth potential, supported by its strategic focus on aerospace products and ongoing efforts to optimize its operations for future opportunities.

© 2024 David Mazor

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