Categories
Brooks

Brooks Running Achieves Record Revenue in 2022

(BRK.A), (BRK.B)

Berkshire Hathaway’s Brooks Running crossed the finish line in 2022 with record global revenue, up 6% over 2021 with growth in all regions, and direct-to-consumer sales up 16%.

The brand navigated supply chain obstacles during the first half of the year, returning to complete inventories in the back half with a record fourth quarter, up 26% year over year.

In January 2022, Brooks became the top brand at U.S. retail in adult performance running footwear, maintaining that position through the year to finish with 21% market share.

For 2022, Brooks again held the No. 1 and No. 2 spots in adult performance footwear styles sold at U.S. retail with the Ghost and Adrenaline GTS respectively, contributing to the running brand’s strong momentum heading into 2023.

Brooks competed for customers across run categories in 2022 with innovative products and key initiatives in cushion, speed, trail, and walking. Notably, the launch of the new Glycerin 20 Super Franchise with a nitrogen-infused midsole offers runners more choice in fit and support, with the addition of the GTS stability system and a new StealthFit option alongside Brooks’ classic fit.

“In 2022, Brooks overcame economic and supply chain headwinds to gain new customers across all categories including running, walking, hiking, and more,” said Jim Weber, CEO at Brooks Running. “As we head into the new year, we’re positioned for continued growth in multiple fitness and outdoor performance categories.”

Expanding global reach and capacity

In 2022, Brooks focused on opportunities to engage runners and better service customers in key markets around the globe. During the year, Brooks launched e-commerce sites in six additional countries and invested in new distribution centers in the U.S. and U.K. to address increasing demand and scale for growth.

In the Europe, Middle East, and Africa region, Brooks grew revenue 15% in local currency year over year. The Asia Pacific and Latin America region grew 33%, with Australia and China up 24% and 21% respectively, driven by wholesale success and a digital-first approach.

Running retailers around the world recognized Brooks for its brand strength and best-in-class service. Brooks was recently named as the top running brand in Canada by independent running retailers in 4 of 5 categories when surveyed by the IRRC (Independent Running Retailers of Canada).

German publication SAZ, a trade publication that tracks retailer sentiment, recognized Brooks as running brand of the year for the sixth year in a row.

In the U.S., Brooks ranked No. 1 overall in Brand Rating and Ranking in this year’s Running Dealer Report issued by the Running Industry Association (RIA).

Connecting with runners and fostering growth in community

Brooks made investments in the running community in 2022 through new initiatives, including the August launch of the “It’s Your Run” global brand campaign, which celebrates runners of all types on their journeys to achieving their best runs. Coinciding with the campaign, the brand grew 2 points of unit share at U.S. retail for adult performance running footwear from August to December 2022, year over year.

The brand’s loyalty program, Brooks Run Club, hit nearly a quarter million memberships last year as the community expanded from digital events to include physical activations across the U.S.

Brooks also organized events at marquee trail and road races this year, including Ultra-Trail du Mont Blanc (UTMB) in Chamonix, France, and the Boston and New York City Marathons. Brooks-sponsored athletes blazed new trails, with CJ Albertson setting the world record in the 50k at 2:38:43 and Josh Kerr clocking 3:48:87 to break the British and European indoor mile records at the Boston University Last Chance Meet.

Last year’s Sasquatch by Louie Gong (Nooksack) collection and Run Proud collaboration with LGBTQ+ artist Lisa Congdon celebrated diverse identities within running and supported Brooks’ goal to champion the run for all.

Brooks also extended its existing relationship with free community event group parkrun, becoming parkrun’s exclusive global footwear partner and the presenting partner in the U.S., Germany, and the Netherlands through 2028, supporting the organization’s growing community that currently includes eight million registered participants in more than 20 countries.

Poised for success in the new year

As Brooks looks ahead to 2023, the brand will continue to meet the evolving needs of runners through product innovation and advancements in nitrogen-infused midsoles and assisted transitions, including its Glideroll rocker. Market trends project growth in running and walking participation, and Brooks will deliver new speed, trail, and cushion products to meet that demand. Brooks will also take further steps down its People and Planet path by deepening investments in youth running and developing elite athletes. Brooks will also launch additional carbon neutral products and a new Green Silence shoe that will showcase advancements in sustainability.

“The future has never been brighter for performance running,” added Weber. “We look forward to introducing more runners to Brooks this year, giving them the premium fit, performance, and experience they desire from their gear while connecting uniquely through our Run Happy spirit.”

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
Appointments

Berkshire’s Intero Names New President

(BRK.A), (BRK.B)

Intero, Berkshire Hathaway’s wholly owned subsidiary of HomeServices of America, Inc., has announced that Scott Chase has been named president of the company and Terry Meyer has been promoted to the role of chief operating officer.

“At Intero, we are constantly evolving to optimize the talents and skills of our seasoned leaders, and to stay ahead of the competition,” said Brian Crane, CEO. “The depth and breadth of our collective senior executive experience sets a high bar and allows us to meet the needs of our agents and clients no matter what the market is doing.”

Scott Chase has been promoted to president from his previous role of COO, a position he held for the last two years.

Chase joined Intero in November of 2018 after a successful stint as regional sales manager at Opes Advisors. During his four years with Intero, Chase contributed to the company’s continued success with his business philosophy focused on planning and continuous improvement in skills, systems, and teams. In addition to his new role as President, he will continue to manage the Los Altos and Menlo Park offices and report directly to CEO Brian Crane. Chase will bring attention to growing revenue and agent differentiation through innovative partnerships, products, and services; in addition, he will be responsible for the company’s growth through Acquisitions, Tuck-Ins and Franchising.

“When agents come to Intero, they come to learn from the best in the business,” said Chase. “Intero as a whole, leverages collaboration, creativity and years of experience to establish a unique culture of specialized education and agent expertise that cannot be found anywhere else.”

Terry Meyer has been promoted to COO and will combine this with his continuing leadership roles as managing officer of Intero’s Los Gatos office and general manager of Intero’s Commercial Division.

Intero serves Northern California and Nevada with 20 offices throughout the greater Silicon Valley, San Francisco, Calaveras County, Western Nevada, and the Greater Lake Tahoe Region. The Intero Franchise network comprises 33 affiliates located in California, Nevada, Tennessee, and Texas. The company is headquartered in the heart of California’s Silicon Valley.

© 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.

Categories
Lessons From Warren Buffett

Lessons From Warren Buffett: How Warren Buffett Thinks About Risk

Risk for Warren Buffett is not just the risk that a business has at the moment, but also includes the risks it may face many years in the future.

“We think of business risk in terms of what can happen, say 5, 10, 15 years from now, that will destroy, or modify, or reduce the economic strengths that we perceive currently exist in a business,” Buffett said at the 2000 Berkshire Hathaway annual meeting. “When we look at businesses, we try to think of what can go wrong with them. We try to look [for] businesses that are good businesses now, and we think about what can go wrong with them. If we can think of very much that can go wrong with them, we just forget it. We are not in the business of assuming a lot of risk in businesses.”

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.

Categories
Acquisitions

Pilot Company Is Now a Berkshire Hathaway Subsidiary

Berkshire Hathaway has moved from a minority ownership stake to a majority ownership stake in Pilot Company, the largest operator of truck stops and rest stops in North America.

In January, Berkshire acquired its long-planned 80 percent equity position in Pilot from the Haslam family, and the family continues to have a 20 percent stake in the company.

In 2017, Berkshire took a 38.6% stake in Pilot, which has 800 locations under the Pilot and Flying J brands.

Pilot is currently in the midst of its three-year $1 billion New Horizons project that is its most significant investment in store modernization to date. It will fully remodel more than 400 Pilot and Flying J travel centers and make additional upgrades at several more locations across the country.

© 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.

Categories
BYD

BYD to Build 543 MWh Energy Storage Project in Las Vegas

(BRK.A), (BRK.B)

Berkshire Hathaway-backed BYD will construct a battery energy storage project for Las Vegas.

BYD announced recently that a 543 MWh Cube Pro liquid-cooled Battery Energy Storage System (BESS), integrated by Energy Vault, will be deployed by NV Energy outside of Las Vegas with construction on the project beginning in the second quarter of 2023.

NV Energy awarded the project to Energy Vault, and expects to begin commercial operation by the end of 2023.

The energy storage system is designed to store and dispatch excess renewable energy, including wind and solar power. The BYD Cube Pro BESS will be charged daily and is designed to send stored renewable energy to the grid during peak consumption hours, helping meet high demand.

“We are pleased to be involved in this significant project,” BYD Senior Director of Business Development Michael Liu said. “This effort will be beneficial to residents of the Las Vegas region, and the entire state of Nevada.”

“Energy Vault is excited to partner with NV Energy and BYD to integrate and deliver, on a turn-key basis, a mission critical BESS that will support Nevada’s largest electric provider in achieving its goal of net zero emissions by 2050,” said Omar Aoun, Vice President of Sales, North America at Energy Vault. “This collaboration proves the quality and flexibility of our services. Our ability to work with key players such as NV Energy and BYD will accelerate the delivery of one of the largest BESS in Nevada, which is designed to store and dispatch excess renewable energy to help meet the high demand during Nevada’s peak load hours.”

The BYD Cube Pro is the latest generation energy storage solution designed for larger utility-scale projects. At 2.6 MWh per unit, the Cube Pro utilizes a liquid-cooled battery system within its enclosure allowing for an 80% increase in energy density over previous generations.

BYD has been committed to the North America Energy Storage market for almost a decade, with the first MW-scale project deployed in the U.S. in 2011. It has remained a market leader since then with more than 4GWh delivered in the U.S and an additional 14GWh confirmed order to be delivered in 2023 and 2024.

© 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.

Categories
Lessons From Warren Buffett

Lessons From Warren Buffett: Only Buy What You Understand

If a sector you know nothing about is booming, should you still buy it? Not if you are Warren Buffett.

“We will never buy anything we don’t think we understand,” Buffett said at the 2000 Berkshire Hathaway annual meeting. “And our definition of understanding is thinking that we have a reasonable probability of being able to assess where the business will be in 10 years.”

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.

Categories
Berkadia

Berkadia Partners with Rabbet

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has formed a partnership with Rabbet, the leading provider of construction finance software, to double its servicing capacity.

Berkadia’s adoption of Rabbet’s platform aligns with their commitment to long-term investments in people and technology. With Rabbet, Berkadia FHA/HUD has doubled servicing capacity, improved processing times, and developed insights to better advise customers.

“Rabbet is committed to providing the tools to service even the most complex areas of construction finance, including HUD lending,” said Will Mitchell, CEO of Rabbet. “We are excited to partner with Berkadia to streamline their processes, increase efficiency, and better serve their customers.”

Berkadia Vice President of FHA Construction Ryan Duff, added, “This partnership is a key step in our efforts to grow our FHA construction lending business. By leveraging Rabbet’s technology, we are able to significantly increase our capacity to service this important market segment.”

“Our partnership with Rabbet, a member of Berkadia’s BeEngaged network, has allowed us to collaborate on long-term initiatives, and implement solutions that deliver excellent service to our clients,” said Berkadia Senior Vice President of FHA and Seniors Housing Finance.

Rabbet’s HUD servicing solution is the first and only HUD-focused solution of its kind. This technology allows HUD lenders to read forms like the 92448 and generate the 92403 and 92451 forms which are distinct to HUD. Rabbet’s HUD solution also gives users the ability to track and report on milestones for complex capital stacks. These features and others were specifically built to accelerate and optimize the operations specifically for HUD lenders.

About Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation (now known as Jefferies Financial Group), Berkadia is a third-party commercial mortgage servicer, as well as an approved lender for Fannie Mae, Freddie Mac, and HUD/FHA.

The company is among the top Freddie Mac and Fannie Mae multifamily lenders.

Berkadia owes its origins to GMAC Commercial Mortgage Corporation, which was acquired in 2009 by Kohlberg Kravis Roberts & Co., Five Mile Capital Partners LLC, and Goldman Sachs Capital Partners. Christened Capmark Financial, the company had $10 billion of originations in 2008 and a servicing portfolio of more than $360 billion before running into bankruptcy in October 2009.

In a deal approved by the bankruptcy court, Capmark sold its mortgage loan and servicing to the newly formed Berkadia in a deal worth $515 million.

The deal brought Berkshire into the heart of the commercial loan serving business, and the company has one of the largest commercial real estate servicing portfolios.

© 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.

Categories
BYD

BYD EV Buses Coming to Annapolis, Maryland

(BRK.A), (BRK.B)

Buses manufactured by Berkshire Hathaway-backed BYD will be rolling in Annapolis, Maryland, after the city purchased two BYD battery-electric K7M transit buses, which will be the first in its transit fleet.

The BYD K7M seats up to 22 passengers and includes two optional ADA compliant wheelchair positions. BYD buses are equipped with unique iron-phosphate batteries that are recognized as the safest in the industry, and are built with low-floors to enhance accessibility and safety for its passengers.

“BYD is proud to join Annapolis as it starts down the path toward electrification” said BYD Senior Vice President Patrick Duan. “Annapolis is such a beautiful city, full of rich history and it’s an honor to be a part of its journey toward a greener, cleaner future.”

The Annapolis Department of Transportation, which operates Annapolis Transit, aims to provide the highest level of reliable, safe, customer-focused, accessible and efficient public transportation throughout its city. Annapolis Transit plans to enhance the quality of life through making environmentally conscious decisions with clean energy transit.

“We all have to make changes in our lives and routines to become less reliant on energy sources that contribute to climate change and sea level rise,” said Mayor Gavin Buckley. “Migrating our transit fleet from fossil fuels to electric is a step the City of Annapolis can take. We are very happy to be moving forward with this acquisition.”

The buses will be built by members of the Sheet Metal, Air, Rail and Transportation (SMART) workers Union, Local 105, in BYD’s manufacturing facility located in Lancaster, California.

© 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.

Categories
Lessons From Warren Buffett

Lessons From Warren Buffett: We Never Talk About This

While financial commentary on TV and in print is often filled with predictions as to which direction the stock market will move, it is not something that Warren Buffett spends any time trying to predict. In fact, as Buffett points out, if he could be successful in predicting price movements, he wouldn’t ever need to buy stocks, as it would be totally unnecessary. He could just bet on stock futures.

“Charlie and I haven’t the faintest idea where the stock market is going to go next week, next month, or next year. We never talk about it. You know, it never comes up,” Warren Buffett said at the 2008 Berkshire Hathaway Annual Meeting. “Obviously, if we could guess successfully a high percentage of the time where the stock market was going to go, we would do nothing but play the S&P futures market. There wouldn’t be any reason to look at businesses and stocks.”

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.

Categories
Berkshire Hathaway Specialty Insurance

Berkshire Hathaway Specialty Insurance Names Bart De Wilde Head of Property, Switzerland

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance (BHSI) has appointed Bart De Wilde to lead its growing property underwriting team and portfolio in Switzerland.

“I am very excited to be expanding our Swiss operations with leaders and teammates whose excellent capability and character will drive the best possible experience for customers and brokers seeking stable property solutions,” said Leander Metzger, Country Manager, Switzerland, BHSI. “Bart will build and lead our property team, providing our reliable capacity, risk engineering and CLAIMS IS OUR PRODUCT philosophy to the Swiss marketplace.”

Bart has more than two decades of insurance underwriting and engineering experience. He comes to BHSI from Holcim Ltd, where he was most recently Deputy Head of Group Insurance. He holds a master’s in Industrial Sciences from Catholic University Leuven, Technology Campus de Nayer.

As part of a steady expansion of its global footprint, BHSI opened a new office in Zurich, Switzerland in 2022, where its growing team is offering a full line of commercial property, casualty, and specialty insurance solutions to customers and brokers.

Bart is based in BHSI’s Zurich office.

© 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.