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BYD

Berkshire Hathaway-Backed BYD’s EV Sales Robust in April

(BRK.A), (BRK.B)

BYD, the Chinese automaker backed by Berkshire Hathaway, has had robust new-energy vehicle sales for the month of April. The company reported selling a total of 313,245 New Energy Vehicles, encompassing both plug-in electric vehicles (EVs) and battery EVs. This figure marks a significant 49% increase compared to the same period last year.

BYD’s top-sellers were the Dynasty and Ocean, which sold a combined 297,864 vehicles. The company also stated that it exported 40,011 passenger vehicles in April.

© 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 is no guarantee of future results.

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Financial Reports

Berkshire Hathaway’s Q1 2024 Operating Earnings Surge Compared to Q1 2023

(BRK.A), (BRK.B)

Berkshire Hathaway has reported impressive operating earnings for the first quarter of 2024, marking a significant increase compared to the same period in 2023. The company’s robust performance across various sectors underscores its resilience and strategic prowess.

In Q1 2024, Berkshire Hathaway’s operating earnings stood at $11.22 billion, a substantial rise from $8.065 billion recorded in Q1 2023. This growth can be attributed to solid performances in key segments:

1. Insurance-underwriting: The company saw a remarkable increase in earnings from insurance underwriting, with figures soaring from $911 million in Q1 2023 to $2.598 billion in Q1 2024.
2. Insurance-investment income: Another significant contributor to the earnings surge was insurance investment income, which rose to $2.598 billion from $1.969 billion in the previous year’s first quarter.
3. BNSF and Berkshire Hathaway Energy Company: Despite minor fluctuations, both BNSF and Berkshire Hathaway Energy Company contributed positively to the overall earnings, reflecting the company’s diversified portfolio.
4. Other controlled businesses: Earnings from other controlled businesses remained stable, totaling $3.088 billion in Q1 2024, compared to $3.065 billion in Q1 2023.
5. Non-controlled businesses: While there was a slight decrease in earnings from non-controlled businesses, Berkshire Hathaway’s overall performance remained strong, with earnings totaling $405 million in Q1 2024.
6. Other: The company reported positive earnings in the “Other” category, marking a notable turnaround from the previous year’s loss, with earnings reaching $673 million.

Berkshire Hathaway’s exceptional performance in the first quarter of 2024 reaffirms its position as a powerhouse in the corporate landscape. With solid growth across various sectors and a commitment to delivering value to shareholders, the company continues to thrive even in challenging economic environments. As investors look ahead, Berkshire Hathaway’s consistent track record of success positions it as a compelling choice for long-term investment.

© 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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Financial Reports

Berkshire Hathaway Share Repurchases Continued in Q1

(BRK.A), (BRK.B)

Berkshire Hathaway continued its stock buybacks in the first quarter of 2024. Berkshire Hathaway, the renowned conglomerate led by Warren Buffett, reaffirmed its commitment to stock buybacks with its latest move repurchases. The company allocated a substantial $2.6 billion towards repurchasing shares of both Class A and Class B common stock.

As of March 31, 2024, Berkshire Hathaway had successfully acquired shares equivalent to 1,437,251 Class A shares. This strategic decision reflects the company’s confidence in its own value and a belief that investing in its own shares presents an attractive opportunity.

This buyback initiative not only demonstrates Berkshire Hathaway’s financial strength but also underscores management’s confidence in the company’s long-term prospects. By repurchasing its own shares, Berkshire Hathaway signals to investors that it views them as undervalued and expects favorable returns in the future.

The company’s proactive approach to capital allocation highlights its commitment to enhancing shareholder value.

Berkshire’s stock buyback initiative allows the company to purchase its Class A and Class B shares whenever Warren Buffett, Berkshire’s Chairman and CEO, deems the repurchase price to be below the company’s conservatively estimated intrinsic value. These repurchases can occur through open market transactions or privately negotiated deals.

Berkshire’s cash reserves has continued to grow, reaching just under $190 billion.

© 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

Berkshire Hathaway Enters Strategic Agreement with DaVita to Maintain Ownership Balance

(BRK.A), (BRK.B)

Berkshire Hathaway has solidified its relationship with DaVita, a prominent global healthcare company specializing in kidney care. With Berkshire holding just under 40 percent ownership in DaVita, a strategic stock buyback agreement has been established to prevent Berkshire from attaining a majority stake in the company.

The Share Repurchase Agreement outlines the terms for maintaining ownership balance. Should Berkshire’s ownership reach at least 45.0% of DaVita’s common stock, the company will engage in quarterly repurchases to adjust Berkshire’s stake back to 45.0%. These repurchases will be executed at the volume-weighted average per share price paid by DaVita during the applicable period. Additionally, if Berkshire’s ownership surpasses 49.5%, immediate share repurchases will be triggered.

Furthermore, Berkshire has agreed to vote shares exceeding 40% in accordance with DaVita’s Board of Directors’ recommendations. This agreement supplements the existing standstill letter agreement between the two parties, ensuring alignment with DaVita’s governance structure.

DaVita’s presence extends across the United States and ten other countries, bolstering its stature in the healthcare sector. Berkshire’s substantial investment in DaVita, holding over 36 million shares as of December 31, 2023, underscores its confidence in the company’s growth prospects.

The investment has proven lucrative for Berkshire, as evidenced by DaVita’s recent stock surge to an all-time high. DaVita’s share buyback program has contributed to this success, allowing Berkshire to increase its stake without additional investment.

This strategic agreement highlights the collaborative approach between Berkshire Hathaway and DaVita, ensuring mutual benefit while maintaining a balanced ownership structure.

© 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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Jazwares

Berkshire Hathaway Subsidiaries Join Forces for Sweet Collaboration

(BRK.A), (BRK.B)

Two beloved companies under the Berkshire Hathaway umbrella, Jazwares and See’s Candies, have teamed up for an exciting promotion set to debut this coming October. Jazwares, renowned for its innovative toys, and See’s Candies, an iconic Californian confectionery brand, are merging their expertise to offer fans a delightful gift set.

The collaboration features a charming ensemble inspired by Squishmallows, the immensely popular plush toy line. Fans can look forward to an eight-inch cuddly rendition of Emily the Bat, a beloved Squishmallows character. This adorable plush will be accompanied by a co-branded custom box of chocolates and candies, all elegantly packaged in a one-of-a-kind tote bag. This exclusive set promises to be a treat for both toy enthusiasts and confectionery aficionados alike.

“Partnering with See’s Candies is the perfect way to further introduce Squishmallows into the consumables space,” remarked Gerhard Runken, Executive Vice President of Brand & Marketing at Jazwares. “This will be the perfect Halloween treat for fans of both brands, and we’re eager to add this unique collaboration to our robust lineup of iconic Squishmallows products!”

Pat Egan, President & CEO of See’s Candies, echoed the sentiment, emphasizing the joy this collaboration will bring to fans. “At See’s, we’re in the business of bringing joy, and that is exactly what this collaboration with Jazwares will do for fans of both brands. The ever-popular Squishmallows combined with our iconic, delicious chocolates will be the perfect treat this October.”

Squishmallows has established itself as a leading toy property in the U.S., with over 400 million plush sold worldwide and a devoted multi-generational fanbase. Its immense popularity extends to social media, particularly among Gen Z users, with billions of video views on platforms like TikTok and Instagram. The brand’s expansion into various lifestyle categories, including beauty, games, and apparel, underscores its status as a cultural phenomenon.

© 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

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Dairy Queen

Jane Friedrich Joins International Dairy Queen as EVP of Research and Development

(BRK.A), (BRK.B)

International Dairy Queen, Inc. (IDQ), a subsidiary of Berkshire Hathaway, made a significant announcement today with the appointment of Jane Friedrich as the Executive Vice President of Research and Development.

In her new role, Friedrich will report directly to the President and CEO, tasked with shaping the strategic direction and spearheading a team dedicated to crafting ingredients and menu offerings that captivate customers. Moreover, she will oversee the critical domains of food safety, quality assurance, and regulatory compliance.

The scope of Friedrich’s responsibilities extends globally, covering more than 7,500 Dairy Queen (DQ) restaurants across 20 countries. This move underlines IDQ’s commitment to continuous innovation and delivering unparalleled culinary experiences to its diverse customer base.

Troy Bader, President and CEO of International Dairy Queen, expressed confidence in Friedrich’s ability to drive the company’s growth trajectory. He emphasized the pivotal role of research and development in fostering customer engagement and sustaining brand loyalty. Bader commended Friedrich’s extensive experience in the field, highlighting her proven track record in product innovation and commitment to upholding the highest standards of food safety and quality.

In response to her appointment, Jane Friedrich conveyed her enthusiasm for joining IDQ during this pivotal phase of expansion. With a focus on delivering tangible business outcomes and fostering high-performing teams, Friedrich expressed her dedication to pushing the boundaries of product innovation. She emphasized the importance of catering to evolving consumer preferences by delivering flavors that resonate with global tastes.

Before joining IDQ, Friedrich accumulated over two decades of invaluable experience at Cargill, where she held various leadership roles spanning research, development, and innovation across multiple food categories. Her academic credentials include doctoral and master’s degrees in food science from Cornell University, along with a bachelor’s degree in chemistry from the University of St. Thomas. Friedrich’s commitment to excellence is further reflected in her publication record, patent portfolio, and her role as the executive chair of the Food Fortification Initiative executive management team.

© 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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Pilot Flying J

Berkshire Hathaway’s Pilot Appoints Gary Hoogeveen as President of Pilot Energy

(BRK.A), (BRK.B)

Berkshire Hathaway’s Pilot, a key player in fuel supply and North America’s largest travel center network, has made a significant move by appointing Gary Hoogeveen as president of Pilot Energy. With over two decades of industry and business expertise, Hoogeveen most recently served as CEO of Berkshire’s Rocky Mountain Power.

Adam Wright, CEO of Pilot, expressed enthusiasm about Hoogeveen joining the team, citing his extensive leadership experience and valuable perspective. Wright emphasized the pivotal role of the energy sector in Pilot’s operations and its dedication to meeting customer needs amidst evolving energy landscapes.

In his new role, Hoogeveen will lead Pilot Energy’s integrated fuel supply chain, overseeing upstream infrastructure, asset management, business development, fuel procurement, and logistics. Moreover, he will drive innovation in electric and alternative energy solutions, aligning with Pilot’s vision of advancing the industry while optimizing traditional fuel supply.

Prior to joining Pilot, Hoogeveen served as CEO of Rocky Mountain Power and held various management positions within Berkshire Hathaway Energy since 2000. His academic background includes a Bachelor of Science in physics from the University of Northern Iowa and a Ph.D. in space physics from Rice University.

© 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: There’s No Special Reward for Degree of Difficulty

Warren Buffett has a simple yet powerful message for investors: the complexity of an investing strategy doesn’t guarantee greater rewards. Speaking at the 1998 Berkshire Hathaway Annual Meeting, Buffett contrasted investing with Olympic diving.

“In Olympic diving, they have a degree of difficulty factor,” Buffett explained. “But that’s not true in investments. You get paid just as well for a simple dive, as long as you execute it correctly.”

Buffett emphasized the importance of execution over complexity, highlighting that investors can achieve success by focusing on straightforward strategies. He used the analogy of stepping over one-foot bars rather than attempting to clear seven or eight-foot bars for Olympic glory.

“It’s very nice, because you get paid just as well for the one-foot bars,” Buffett remarked.

Buffett’s words serve as a reminder that in the world of investing, simplicity and sound execution often yield the best results. Instead of chasing complex strategies, investors can find success by mastering the basics and staying disciplined in their approach.

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 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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Richline Group

Berkshire Hathaway’s Richline Group and BOSS Logics Forge Innovative Partnership

(BRK.A), (BRK.B)

In a groundbreaking move, two industry leaders, Berkshire Hathaway’s Richline Group and BOSS Logics, have joined forces in a multi-year partnership announced in March.

Richline Group, a prominent manufacturer of precious metals and materials, and BOSS Logics, a premier provider of technology solutions for the jewelry industry, are set to revolutionize the fine jewelry landscape with their collaboration.

The partnership kicks off with a focus on introducing specialized fine jewelry collections that harness Richline Group’s expertise in key categories such as karat gold and diamond jewelry, combined with cutting-edge technology from BOSS Logics.

Dave Meleski, CEO of Richline Group, expressed enthusiasm about the venture, stating, “It has always been our desire to partner with better independent jewelers to create a world-class fine jewelry experience.” He emphasized the potential for BOSS Logic’s advanced technology to enhance integration with retail partners and deliver unparalleled value across diverse fine jewelry categories.

In addition to product collaboration, BOSS Logics will serve as Richline’s exclusive data partner for independent jewelers worldwide. Leveraging insights from the B2B ordering and catalog platform BOSS Logics Live, this unique alliance aims to streamline the process for retailer partners to select, launch, promote, and sell fine jewelry from Richline.

Zach Lipsky, CEO of BOSS Logics, shared his excitement about the partnership, stating, “This new partnership is the next step towards our mission to better align vendors and retailers through technology on behalf of the next generation of jewelry buyers.” Lipsky emphasized the synergy between emerging technology and fine jewelry, underscoring Richline’s pivotal role in supporting their ambitious vision.

The collaboration will be unveiled at JCK in Las Vegas, offering a preview of focused fine jewelry collections from Richline and a glimpse of an innovative omnichannel experience from BOSS Logics. This preview sets the stage for a limited release ahead of the 2024 holiday season, marking a significant milestone in the convergence of traditional craftsmanship and technological innovation in the jewelry industry.

© 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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Lubrizol

Lubrizol’s Commitment to Innovation: $20 Million Investment in Gastonia Plant

(BRK.A), (BRK.B)

Lubrizol, a key player in resin technology for coatings, has unveiled plans for a significant $20 million investment in its Gastonia, North Carolina plant. This strategic move aims to bolster the production of innovative acrylic emulsions, underlining the company’s commitment to pushing the boundaries of coating performance.

Dating back to the 1950s, Lubrizol has been at the forefront of developing and manufacturing acrylic emulsion technologies. These formulations find wide applications across various industries, including paper, textiles, and construction materials. Over the years, Lubrizol has amassed over a dozen patents in North America alone, showcasing its dedication to pioneering advancements in coating performance. From enhancing UV and chemical resistance to improving hardness and toughness, Lubrizol’s acrylic emulsions have been instrumental in driving innovation in the coatings sector.

Luis Carthery, Sr. Business Director-Americas at Lubrizol, emphasized the company’s unwavering commitment to innovation. He noted, “Our commitment to innovation and production of world-class acrylic emulsions will continue, as evident by this significant investment.” Despite the enduring success of products like Hycar® Acrylic Emulsions, which were first commercialized in the 1960s and still enjoy significant sales volumes today, Lubrizol remains focused on bringing modern resin technologies to its customers.

The investment in the Gastonia facility will encompass several key upgrades, including updated processing equipment, storage tanks, and packaging facilities. These enhancements will not only boost production capacity but also ensure that Lubrizol maintains its high standards of safety and operational efficiency. Tom Zagore, Sr. Director for Product Management, highlighted the importance of these improvements, stating, “Safety and operating efficiency are key drivers for the changes. As Lubrizol continues to drive acrylic product performance, we need to be capable of handling product complexity, system optimization, and the safe handling of materials to achieve the highest level of Responsible Care® compliance, employee safety, and operational efficiency.”

With this investment, Lubrizol reaffirms its position as a leader in resin technology, poised to meet the evolving needs of its customers while driving innovation in the coatings industry.

© 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.