Berkshire Hathaway Specialty Insurance has promoted Craig Taylor to the expanded role of Regional Head of Property, Australia & New Zealand.
“BHSI continues to grow our Technical Lines, Corporate and Mid-market books throughout Australia and New Zealand,” said Mark Lingafelter, Head of Australasia, BHSI. “Over the last 7 years, Craig has led the development of our Property and Risk Engineering team in Australia, and developed a strong reputation for exceptional service and technical capability with our customers and brokers. Craig will now take on a wider role, leading our New Zealand and Australian Property and Risk Engineering teams. We believe Berkshire brings unique capabilities to the market, and we are excited about the opportunity to further develop our Property business across the region.”
Craig joined BHSI in 2015 as Head of Property for Australia and will retain that role in addition to his new position. He started his career in New Zealand and brings more than 25 years of property underwriting experience to this role. Craig will continue to be based in Sydney.
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.
BNSF Railway Company has awarded four new locations for its Certified Sites designation. In order to be considered, sites must undergo a thorough analysis which includes an evaluation of environmental and geotechnical standards, available utilities, site availability and existing and proposed infrastructure.
“BNSF’s Site Certification Program creates tremendous value for customers who are seeking a rail-served industrial site by accelerating the process required for economic growth and development,” said Chris Danos, Assistant Vice President, Economic Development. “A customer who builds a new rail-served facility at one of these sites is expected to save six to nine months of valuable construction time as a result of this shovel-ready program,” said Danos.
The newly-designated Certified Sites feature acreage ready for industrial development:
• Dodge City Business Park, Dodge City, KS – This 244-acre location is the third Certified Site in the State. It is designated as light industrial zoning with all utilities available. Located off the BNSF network along US Highway 56 and 109.
• Reimann Industrial Center, Pasco, WA – Zoned for industrial use, this 150-acre site is conveniently located west of State Highway 395 and is six short miles from the Tri-Cities Airport. The first site of this size in the State, it is owned by the Port of Pasco, which offers a rail spur and runs adjacent to the BNSF network.
• Seward/Lincoln Regional Rail Campus, Seward, NE – This 194-acre industrial zoned site is the first-of-its-kind in the State with direct access to the BNSF network. Located in south Seward, 25 miles from Lincoln, with immediate access to Interstate 80.
• Upton Logistics Center, Upton, WY – This property consists of developable property with 295 acres of the logistics center recently certified. This site is zoned heavy industrial and is bordered to the east by BNSF Railway. Upton Logistics Center is operated by Tiger Transfer, a BNSF Premier Transloader.
Certified Sites are a part of BNSF’s Premier Parks, Sites and Transload program. The program is a strategic approach that addresses the increasing demand for customer site locations by developing various types of facilities across BNSF’s network. BNSF Certified Sites are reviewed by an industry expert in order to ensure accurate, reliable data. The goal of the program is to provide an inventory of rail-served sites that are available for immediate development.
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.
If ever there was a natural acquisition for Berkshire Hathaway it would be acquiring the majority stake in a company that it currently owns 25 percent of, and already runs on a daily basis.
Dominion Energy is reportedly looking to sell its 50% stake in Cove Point LNG, and Berkshire Hathaway would seem to be a natural suitor, if the price is right.
The offshore liquid natural gas shipping terminal is operated by Berkshire Hathaway’s BHE GT&S, a standalone subsidiary of Berkshire Hathaway Energy.
Berkshire Hathaway Energy acquired a 25% stake in the facility in November 2020 when it bought Dominion Energy’s natural gas transmission and storage business, exclusive of Questar Pipeline Group.
Located near Lusby, Maryland, on the western shore of the Chesapeake Bay, the facility is the first such facility on the East Coast. It is recognized as one of the most technically advanced and environmentally sensitive LNG facilities in the world, and has a storage capacity of 14.6 billion cubic feet (BCF) and a daily send-out capacity of 1.8 BCF.
Cove Point produces LNG under 20-year contracts for ST Cove Point, a joint venture of Sumitomo Corporation and Tokyo Gas, and for Gail Global (USA) LNG, the U.S. affiliate of GAIL (India) LTD.
Since the facility first entered commercial service in April 2018 for natural gas liquefaction and export, LNG produced from the facility has supported the energy needs of 28 countries, including many in Europe in recent months. And Cove Point LNG loaded its 300th commercial cargo at the end of July.
The terminal connects, via its own pipeline, to the major Mid-Atlantic gas transmission systems of Transcontinental Gas Pipeline, Columbia Gas Transmission and Eastern Gas Transmission and Storage.
The Cove Point facility is unique among U.S. LNG terminals for its operational flexibility and demonstrated ability to perform all the functions of an LNG facility, including import, export, vaporization and send out, and liquefaction.
According to Bloomberg, Dominion Energy has begun talking to companies about buying its stake in the facility, and while Berkshire’s separate deal to acquire Dominion Energy’s Questar Pipeline Group was abandoned in 2021 due to antitrust concerns, antitrust issues are unlikely to be a problem with a Cove Point LNG acquisition.
In addition to Dominion Energy and Berkshire Hathaway, Brookfield owns 25%, invested through its Super Core-infrastructure fund.
Berkshire Hathaway, which owns roughly 18 percent of the nation’s natural gas pipelines, would seem to be the most logical choice to become majority owner of Cove Point LNG, and it probably won’t be long before we learn whether that is in the cards.
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.
It would seem logical that an investor wants to buy low and sell high, and that ideally that sale should be at or near the highest share price that a stock reaches. However, Warren Buffett sees it differently, and he has no fear that others make money off a stock that he’s sold. In fact, he thinks it is an indicator that as an investor you are on the right track when it comes to looking for superior businesses.
“I would worry, frankly, if I sold a bunch of things right at the top, because that would indicate that, in effect, I was practicing the bigger fool-type approach to investing, and I don’t think that can be practiced successfully over time,” Warren Buffett said at the 1998 Berkshire Hathaway Annual Meeting. “I think the most successful investors, if they sell at all, will be selling things that end up going a lot higher, because it means that they’ve been buying into good businesses as they’ve gone along.”
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.
Berkshire Hathaway is continuing its reduction of the number of shares it owns in Chinese automaker BYD. Berkshire sold 5.78 million of BYD’s Hong Kong-listed shares on November 8, according to its latest stock exchange filing.
The latest sale reduces Berkshire’s stake in BYD to 16.62 percent.
Berkshire first began trimming its stake in BYD in mid-July, and just last week, Berkshire sold 3.297 million Hong Kong-listed shares.
In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares for $232 million.
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.
Berkshire Hathaway Specialty Insurance has promoted Katharina Rütz to Head of Commercial Lines E&P in Germany. She was previously Senior Underwriter, D&O, in Germany.
“BHSI’s commitment to serving our Executive & Professional Lines customers and business partners in Germany and throughout the DACH region is stronger than ever,” said Andreas Krause, Head of DACH, BHSI.
“I am pleased to have Katharina leading our talented team as we build long-term relationships in our marketplace with stable E&P solutions, backed by our long-view underwriting, financial strength, and CLAIMS IS OUR PRODUCT philosophy,” said Carsten Keune, Head of E&P, Germany, at BHSI.
Katharina, who joined BHSI in 2021, has more than 13 years of experience in the German insurance market. She holds a law degree from Westfälische Wilhelms-University and a Bachelor of Arts degree from Cologne University of Applied Sciences.
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.
Energy producer Occidental, which is over 20-percent owned by Berkshire Hathaway, and its subsidiary 1PointFive and King Ranch, a privately-held agricultural production and resource management company, today announced a lease agreement to support large-scale Direct Air Capture (DAC) projects for dedicated carbon dioxide (CO2) sequestration on 106,000 acres in Kleberg County, Texas.
The agreement provides access to land for the potential to remove up to 30 million metric tons of CO2 per year through DAC and pore space estimated to store up to 3 billion metric tons of CO2 in geologic reservoirs.
The agreement will advance 1PointFive’s development plans for commercial-scale DAC plants as a decarbonization solution to accelerate a net-zero economy. In addition to DAC emissions capture, the King Ranch acreage is also located near industrial emitters in the Gulf Coast region, including Corpus Christi, where emissions can be captured, transported and sequestered in the pore space. Each DAC plant in the site is expected to be capable of removing up to 1 million metric tons of CO2 per year yielding a total capacity of up to 30 million metric tons per year when all facilities are operational.
“We are excited to work with King Ranch on what will be the largest DAC deployment project in the world, as we continue our plans to provide affordable and practical industrial-scale decarbonization solutions,” said Vicki Hollub, President and CEO, Occidental. “We believe large-scale DAC, which is an innovative engineered CO2 removal solution, will play an important role in helping organizations and nations reduce their net CO2 emissions and provide the scale necessary to make a difference in addressing climate change globally.”
“King Ranch has been focused on conservation for more than a century. While these methods to capture carbon are relatively new, they are consistent with our vision and values. We’re proud to partner with Occidental while continuing a focus on stewardship of our natural resources,” said Robert Hodgen, CEO of King Ranch, Inc.
Occidental’s first DAC plant in the Texas Permian Basin is currently under construction and builds on Occidental’s 50 years of carbon management experience. 1PointFive is working with Carbon Engineering to commercialize their technology and enable the global deployment of large-scale DAC projects. Worley is handling engineering, procurement, and construction (EPC) services for the first DAC plant.
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.
It is easy for investors to get so wrapped up in a hot sector or company that they can lose sight of the fact that it in the end it is all about making money, and as Warren Buffett points out, a dollar from the hottest high tech company is no better than a dollar from a completely out of fashion industry.
“Whether the money comes from a bank, whether it comes from an internet company, or whether it comes from a brick company, the money all spends the same,” Warren Buffett said at the 2002 Berkshire Hathaway Annual Meeting. “Now the question is, what are the economic characteristics of the internet company or the bank or the brick company that tell you how much cash they’re going to generate over long periods in the future.”
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.
Warren Buffett continues to see Berkshire Hathaway stock as a good value and use of Berkshire’s profits. Approximately $1.05 billion was used to repurchase Berkshire shares during the third quarter bringing the nine month total to approximately $5.25 billion.
The buybacks come as Berkshire posted $7,761 billion in operating earnings for the third quarter, up from $6,466 billion for the same quarter in 2021.
At September 30, 2022, insurance float (the net liabilities we assume under insurance contracts) was approximately $150 billion, an increase of $3 billion since yearend 2021.
An analysis of Berkshire’s operating earnings follows (dollar amounts are in millions).
Third Quarter
First Nine Months
2022
2021
2022
2021
Insurance-underwriting
$
(962
)
$
(784
)
$
(334
)
$
356
Insurance-investment income
1,408
1,161
4,484
3,588
Railroad
1,442
1,538
4,477
4,305
Utilities and energy
1,585
1,496
3,101
2,939
Other controlled businesses
3,247
2,706
9,521
8,329
Non controlled businesses*
362
310
874
665
Other**
679
39
1,961
(12
)
Operating earnings
$
7,761
$
6,466
$
24,084
$
20,170
* Includes certain businesses in which Berkshire has between a 20% and 50% ownership interest.
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.
Berkshire Hathaway HomeServices has announced its further expansion in the Southeastern region with the addition of Berkshire Hathaway HomeServices Southern Routes Realty, which will operate in the states of Tennessee and Georgia.
The office will be owned by industry veteran Vickie McBryar, who brings over two decades of industry experience to the brand. Her son, Chase Jolander, will closely oversee the companies’ daily operations. The mother-son duo plans to lead the company to new heights with this transition.
“We are thrilled to continue servicing our clients, now under the prestigious Berkshire Hathaway HomeServices brand name,” said Jolander. “The global brokerage brand not only supports its network agents globally but also provides us with the tools and support to service our clients effortlessly. We could not be happier to be part of this forward-thinking brand as we approach the new year.”
“Given the demand we are seeing for homes in this region, we are thrilled to welcome Vickie, Chase, and their team to help service clients while they support this growing market,” said Christy Budnick, CEO, Berkshire Hathaway HomeServices. “Their team can now provide first-hand knowledge and service only a Forever Agent can supply, through our global network assets.”
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.