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CORT

CORT Boosts Paula Newell to COO

(BRK.A), (BRK.B)

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

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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

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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.

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Financials

Berkshire Hathaway Share Repurchases Doubled in Q4

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Berkshire Hathaway accelerated its stock buybacks in the fourth quarter of 2023. The repurchases doubled the $1.1 billion in the third quarter. The company reported that “approximately $2.2 billion was used to repurchase Berkshire shares during the fourth quarter of 2023 bringing the total for the year to approximately $9.2 billion. On December 31, 2023 there were 1,441,483 Class A equivalent shares outstanding.”

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.

The conglomerate reported strong operating earnings in Q4 of $8.481 billion as compared to $6.625 billion in Q4 2022. Operating earnings for the full year were a robust $37.350 billion as compared to $30.853 in the full year of 2022.

Berkshire’s cash reserves has continued to grow, reaching $167.6 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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Berkshire Hathaway Energy

Berkshire Hathaway Acquires Major Renewable Energy Project

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In a significant move towards bolstering its renewable energy portfolio, Berkshire Hathaway has finalized the acquisition of the Arco Wind and Solar project from NorthRenew Energy. The project, located in southeastern Idaho’s Bingham and Bonneville counties, will eventually bring 1.2 gigwatts of power online and marks a strategic investment by Berkshire Hathaway Energy’s subsidiary, PacifiCorp, into clean energy infrastructure.

Upon completion, the Arco Wind and Solar project is expected to contribute 300 MW of power to the grid when it becomes operational in 2026. Furthermore, there are plans to potentially augment its capacity by an additional 800 MW of solar energy in the future.

Garth Klimchuk, Founder and Managing Partner of NorthRenew Energy, expressed enthusiasm about the acquisition, highlighting the collaboration with one of North America’s largest utility companies. He emphasized the joint effort to advance the Arco project towards construction, indicating a commitment to expanding renewable energy initiatives.

PacifiCorp, as part of Berkshire Hathaway, is a prominent player in the energy sector, particularly as the largest grid operator in the western United States. Serving customers across Oregon, Washington, California, Utah, Idaho, and Wyoming, PacifiCorp’s involvement underscores the company’s commitment to sustainable energy solutions.

With construction set to commence in 2025 and commercial operations scheduled for late 2026, the Arco Wind and Solar project represents a significant step forward in the region’s transition towards renewable energy sources. The project’s integration of wind, solar, and storage technologies showcases a comprehensive approach to clean energy generation and aligns with broader efforts to combat climate change.

Berkshire Hathaway’s acquisition of the Arco project not only underscores its commitment to environmental sustainability but also positions the company as a key player in driving the transition towards a greener energy landscape. As renewable energy continues to gain momentum globally, investments like these signal a paradigm shift towards a more sustainable and resilient energy future.

© 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 and Raízen Power Partner to Boost Electric Mobility in Brazil

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In a bid to accelerate sustainable electric mobility in Brazil, BYD, backed by Berkshire Hathaway and a global leader in electric vehicle (EV) sales, has joined forces with Raízen Power, a prominent player in Brazil’s electricity sector. The strategic partnership, announced at an event in Shenzhen, China, also involves Shell, aiming to enhance the public infrastructure for EV charging across major Brazilian capitals.

The collaboration outlines ambitious initiatives, including the construction of EV charging hubs under the Shell Recharge brand in eight Brazilian capitals over the next three years. Beginning in 2024, São Paulo, Rio de Janeiro, Belo Horizonte, Brasília, Curitiba, Florianópolis, Salvador, and Belém will witness the installation of these hubs, offering a high-tech recharging experience fueled by 100% clean and renewable energy.

The partnership aims to significantly expand Brazil’s public network of electric chargers by installing 600 new DC charge points, contributing an additional 18 MW of installed power to recharge electric vehicles nationwide. Furthermore, BYD drivers utilizing the Shell Recharge network will benefit from competitive energy prices and services, facilitated by Raízen Power’s expertise.

Raízen Power, a licensee of the Shell brand with an extensive network of nearly eight thousand mobility sites across Brazil, Argentina, and Paraguay, aims to establish itself as a leader in the Brazilian electromobility market. The company aims for a 25% market share in the segment while also targeting a 10% market share in the free energy market and advancing its distributed generation projects.

Ricardo Mussa, CEO of Raízen, expressed the company’s commitment to democratizing access to electric mobility and renewable energy, aiming to make these solutions more accessible, affordable, and attractive to the market. The partnership with BYD aligns with this vision, offering a complete and integrated portfolio within the Shell Recharge network to support the global pursuit of a sustainable future.

For BYD, this partnership represents a strategic opportunity to expand its presence in Brazil’s burgeoning electric mobility landscape. Stella Li, Executive Vice President of BYD and CEO of BYD Americas, emphasized the importance of a robust charging infrastructure in accelerating the transition to sustainable transportation and supporting the company’s ambitious sales expansion plans.

The collaboration between BYD, Raízen Power, and Shell builds upon a previous strategic cooperation agreement signed in 2022 to enhance the charging experience for BYD’s battery electric vehicle (BEV) and plug-in hybrid electric vehicle (PHEV) customers.

István Kapitány, Shell’s Global Executive Vice President for Mobility, highlighted the importance of collaboration in driving the electric mobility transition, emphasizing the role of industry partnerships in achieving shared goals. Shell’s existing global EV charging network, which is set to expand further, underscores the company’s commitment to making EV charging convenient and enjoyable for customers worldwide.

The partnership between BYD, Raízen Power, and Shell signifies a significant step forward in promoting sustainable electric mobility in Brazil, aligning with global efforts to combat climate change and transition to cleaner transportation solutions.

© 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.