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Retail

Berkshire Hathaway’s Jordan’s Furniture to Open New Store in Connecticut

(BRK.A), (BRK.B)

Berkshire Hathaway’s Jordan’s Furniture, a popular Massachusetts-based furniture retailer, will open new store in Connecticut in the Westfarms Mall in Farmington. The town is on the outskirts of the state capital, Hartford.

The store will open in 2024, occupying a former Lord & Taylor anchor store, and will feature more than 120,000 square feet of showroom floor space. The store will also have 5,000-square-feet of restaurant and entertainment attraction.

Jordan’s, with the slogan “Not Just A Store, An Experience,” is known for outfitting many of its stores with large entertainment attractions to enhance the shopping experience. Two of its stores have IMAX 3D theaters, and others have multi-level It Ropes Courses with over 30 activities, including zig-zag beams, spaghetti hand lines, angled rope ladders, crisscross walks, and a zip line.

Most Jordan’s are stand-alone locations, and Westfarms Mall will become its third mall location.

Founded in 1928 by Samuel Tatelman, who originally sold furniture out of a truck before opening his first Jordan’s store in Waltham, Massachusetts, the chain really took off in the early 1970s when his grandsons, Barry and Eliot Tatelman, took over the business and added a unique level of showmanship.

Store openings created great fanfare, and the 1987 opening day of the Avon, Massachusetts store reportedly caused the largest traffic jam ever recorded on Route 24.

The regional chain had four locations when it was sold to Berkshire Hathaway in 1999. The chain has since grown its locations, and Westfarms will become the eight location and second in Connecticut.

At the time of the acquisition, the retailer was approaching a quarter of a billion dollars in sales and sold more furniture per square foot than anyone in the U.S. Warren Buffett said, “Jordan’s Furniture is truly one of the most phenomenal and unique companies that I have ever seen. The reputation that Eliot and Barry have earned from their employees, their customers, and the community is unparalleled. This company is a gem!”

© 2022 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: People Always Want a Formula

Disciplined investors are often trying to find the key investing principals that they can apply that will tell them when to make an investment. However, Warren Buffett points out that it is not that simple.

“People always want a formula. They go to The Intelligent Investor and they think, you know, somewhere they’re going to give me a little formula and then I can plug this in and I know I’ll make lots of money. And it really doesn’t work that way,” Warren Buffett said at the 2002 Berkshire Hathaway Annual Meeting. “What you’re trying to do is look at all the cash a business will produce between now and judgment day, and discount it back at a rate that’s appropriate, and then buy it a lot cheaper than that…So, I wouldn’t want to have a single yardstick, or a, you know, relative P/E that I went by.”

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2022 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
Minority Stock Positions

BYD Expands Mexico Presence With Auto Dealer Network

(BRK.A), (BRK.B)

Berkshire Hathaway-backed BYD’s cars are still not available in the U.S., but they are getting closer and closer. BYD recently unveiled its luxury sedan HAN EV and all-electric SUV TANG EV at a test drive event in Mexico.

BYD announced its partnership with eight local dealers: Grupo Continental, Grupo Cleber, Grupo Dalton, Grupo Excelencia, Grupo Farrera, Grupo Fame, Liverpool, and Grupo del Rincón. The global enterprise is expected to expand its local presence in the country and introduce its top-of-the-line new energy vehicles (NEVs) to the Mexican market in 2023.

Zhou Zou, Country Manager of BYD Mexico, stated, “We are happy with this new step BYD is taking in Mexico. We want to be a long-term partner with projects that promote zero-emission solutions in the country. BYD Mexico now boasts more than 9 years of local experience, achieving significant milestones in new energy taxis, trucks, and forklifts. Today marks a new milestone for BYD, and we will bring new energy passenger vehicles to Mexican users in the first half of 2023.”

As BYD’s flagship Sedan, HAN EV comes equipped with BYD’s revolutionary Blade Battery, which offers outstanding performance in terms of safety and range. With a 0-100km/h sprint time of just 3.9 seconds, participants were allowed to enjoy the incredible handling experience of electric vehicles.

Neva Zhang, the Commercial Director of BYD Mexico, noted that BYD is excited to grow its global market presence in Mexico. “To cope with industrial transformation and ever-changing consumer trends, BYD will continue to focus on technological innovation”, said Zhang, “In addition, we will always respond to people’s pursuit of a better life with advanced technologies and diversified products.”

Electromobility is an environmental and economic trend. In Mexico, 50% of polluting emissions are generated from the use of electricity and transportation, with one-fifth stemming from transportation emissions, according to Statista, a global data collecting platform. Thus, reducing the emissions generated by motor transport must be a priority in the future.

For over 20 years, BYD has provided excellent sustainable electric vehicles experience to global users. On November 2022, BYD hit a new milestone with the 3 millionth NEV produced. By working with local partners, BYD will build a localized sales and service system, to ensure better consumer experiences for Mexican users.

© 2022 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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Berkshire Hathaway HomeServices

Berkshire Hathaway HomeServices Expands in Mississippi with Cabin & Creek Real Estate

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Berkshire Hathaway HomeServices, a global residential real estate brokerage network, has announced its further expansion in the Southeastern region with the addition of Cabin & Creek Real Estate, which will now operate as Berkshire Hathaway HomeServices Cabin & Creek Real Estate.

The office will be owned by Mississippi state native Chuck Paulk who has 17 years of industry experience and expertise. Headquartered in Summit, Mississippi, the office will serve the Southwestern region of Mississippi. Since its creation Cabin & Creek Real Estate has grown; increasing its annual sales almost 10 times in less than 8 years and will now bring its success to the Berkshire Hathaway HomeServices global brand.

“This is such a monumental milestone for our team,” said Paulk. “We are looking forward to growing and expanding throughout our marketplace under the Berkshire Hathaway HomeServices brand. This step in our business will allow us to better serve our clients, providing invaluable assistance from start to finish.”

By joining the network, Berkshire Hathaway HomeServices Cabin & Creek Real Estate agents gain access to Berkshire Hathaway HomeServices’ active referral and relocation networks, and its “FOREVER Cloud” technology suite, a powerful source for lead generation, marketing support, social media, video production/distribution and more.

The brand also provides an exclusive Luxury Collection marketing program for premier listings. Its Prestige Magazine showcases network members’ premium listings with a strong lineup of feature stories covering topics that appeal to high-end real estate clients.

“Given the demand we are seeing for homes in this area, it made sense for us to expand to better support this growing market,” said Christy Budnick, CEO, Berkshire Hathaway HomeServices. “While the availability of country homes with land, homes in town and beyond are highly competitive, this team will be able to provide on-the-ground knowledge and provide clients with an exceptional experience throughout every part of the homebuying or selling process.”

Berkshire Hathaway HomeServices Cabin & Creek Real Estate will have a team of agents supporting the new office who brings extensive familiarity of the Southwestern Mississippi market.

Gino Blefari, chairman of Berkshire Hathaway HomeServices, welcomed the company to the network, “Berkshire Hathaway HomeServices Cabin & Creek Real Estate is a clear example of our mission. It’s important to us that we align ourselves with individuals who share the same core values, and I have no doubt that this team will carry out these ethics seamlessly.”

© 2022 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 Energy Subsidiary to Move Richmond Headquarters

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Berkshire Hathaway’s BHE GT&S, a standalone subsidiary of Berkshire Hathaway Energy, will have move its Richmond, Virginia headquarters to two Innsbrook office buildings that it recently bought from credit card company Capital One.

BHE GT&S paid a total of $20.75 million for 200,000 square feet of office space in buildings Knolls 4 and Knolls 5 located at 10700 and 10750 Capital One Way.

The deal closed Dec. 1.

The buildings are currently empty, and after renovation will replace the current BHE GT&S headquarters located in Reynolds Crossing. Innsbrook, a mixed-use corporate center in Central Virginia founded in 1979 and is just three minute from Richmond.

BHE GT&S operates around 5,400 miles of transmission lines in the eastern U.S and 756 bcf of total natural gas storage – with 420 bcf of working gas capacity – along with gathering, processing and field services businesses. BHE GT&S also provides a variety of LNG solutions through Pivotal LNG, its 25% operating stake in Cove Point LNG – the import, export and liquefaction facility in Lusby, Maryland – and other LNG processing and storage initiatives.

© 2022 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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Insurance

Berkshire Hathaway Receives $100 Million Seritage Prepayment

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Berkshire Hathaway has another $100 million that it needs to invest.

Seritage Growth Properties, a national owner and developer of retail, residential and mixed-use properties, announced that on November 30, 2022, the company made a voluntary prepayment of $100 million toward its $1.6 billion term loan facility provided by Berkshire Hathaway Life Insurance Company of Company of Nebraska.

With the prepayment, $1.06 billion of the term loan facility remains outstanding.

The prepayment will also reduce the amount of interest Berkshire receives from Seritage’s total annual interest expense by approximately $7.0 million.

© 2022 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: We Don’t Pay Any Attention to a Stock’s Beta

Beta, a measure of a stock’s historical volatility, is of no relevance to Warren Buffett when making an investment decision.

“We don’t pay any attention to beta or any of that sort of thing. It just doesn’t mean anything to us,” Warren Buffett said at the 1998 Berkshire Hathaway Annual Meeting. “We’re only interested in price and value. And that’s what we’re focusing on all the time, and any kind of market movements or anything don’t mean anything.”

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2022 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 Promotes Two U.S. Executive & Professional Lines Leaders

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Berkshire Hathaway Specialty Insurance has announced a pair of promotions on its U.S. Executive & Professional Lines team, naming Shelley Norman, Senior Vice President, Management Liability, U.S., and Jason Preston as Senior Vice President, Management Liability, Central Region.

“I’m pleased to elevate these two leaders to oversee our growing Executive & Professional Lines portfolio in the U.S.,” said Anthony Tatulli, Head of Executive & Professional Lines, North America. “Shelley and Jason will help lead our team as we continue to bring underwriting solutions to our customers, together with BHSI’s financial strength, and our CLAIMS IS OUR PRODUCT philosophy – all of which are particularly vital to our broker and customer partners.”

Shelley, who has more than 25 years of industry experience, joined BHSI in 2021 as Senior Vice President, Management Liability, Central Region. In her new role, she will oversee BHSI’s regional teams underwriting commercial public and private non-profit management liability insurance nationwide. She continues to be based in Chicago.

Jason has more than 22 years of industry experience spanning both the underwriting and brokerage sides of the business. He joined BHSI in 2021 as Vice President, Management Liability. In his new role, he will oversee BHSI’s Commercial Public and Private Non-Profit Management Liability underwriting team in the Central region. He continues to be based in Chicago.

© 2022 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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NetJets

NetJets Plunks Down $312 Million for 4 Additional Bombardier Global 8000 Aircraft

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Aircraft manufacturer Bombardier has announced that NetJets will become the fleet launch customer for the Global 8000 aircraft. Adding to its already massive global fleet of more than 850 aircraft (and still growing), NetJets has placed a new firm order for four Global 8000 aircraft, valued at $312 million dollars and converted eight existing orders for Bombardier products.

The transaction adds to Global 7500 aircraft already on order and in service. NetJets will build a 24-strong fleet of the performance leading Global 8000 aircraft, as they will also be working with Bombardier to upgrade the entire in-service Global 7500 fleet to Global 8000 jets when they begin taking delivery of its new flagship aircraft. NetJets could subsequently grow its fleet—the world’s largest, most diverse fleet in private aircraft—through a series of options that could be exercised progressively over the coming years.

Introduced earlier this year at EBACE in Geneva, Bombardier’s flagship for a new era features an industry-leading range of 8,000 nautical miles and an unbeaten top speed of Mach 0.94. This ultimate all-in-one business aircraft will offer NetJets Owners a unique blend of outstanding performance, the smoothest ride, and an exceptional passenger experience focused on uncompromising safety and service standards that only NetJets can provide.

“The new Global 8000 aircraft is the ultimate solution for NetJets’ discerning Owners, offering a truly seamless private aviation experience,” said Eric Martel, President and CEO, Bombardier. “NetJets’ experience and expertise make them the ideal partner to unlock the full potential of this revolutionary Mach 0.94 business jet in a large fleet context. Our valued relationship continues to grow stronger, and we are proud to share this historic milestone together.”

“The new Global 8000 will help us to continue offering our Owners, specifically our international travelers, the pinnacle in unforgettably personalized experiences aboard the finest ultra-long-range aircraft available,” said Patrick Gallagher, NetJets’ President of Sales, Marketing, and Service. “With inventory sold out through 2023 in the U.S., we are continuing to invest in further expansion for prospective Owners in North America and across the globe. In fact, by the end of 2023, we are proud to share that our worldwide fleet will be approximately 30% larger than it was in the beginning of 2022.”

The discerning Global 8000 business jet features the most generous cabin size in the industry, with the lowest cabin altitude in its class of 2,900 feet when flying at 41,000 ft. It is also equipped with Bombardier Pũr Air and advanced HEPA filter technology for the fastest fresh air replacement.

The Global 8000 aircraft delivers when it comes to in-flight experience. The cabin incorporates the revolutionary features introduced on the Global 7500 aircraft that dramatically improve passenger comfort. The aircraft also features the innovative Nuage seat, with the first-ever zero gravity position in a business jet, allowing NetJets Owners to arrive at their destinations revitalized and refreshed.

An exemplary commitment to detail is assured on the new Global 8000 aircraft, including an available Principal Suite with a full-size bed. Revolutionary cabin entertainment control and connectivity, the intuitive nice Touch CMS and OLED touch dial, Bombardier’s l’Opéra directional audio sound system and available 4K monitor, also ensure passengers will receive an unrivalled cabin experience.

Performance-wise, the new Global 8000 aircraft can efficiently transport NetJets Owners to a wide variety of destinations both faster and farther than ever before. With its exceptional class-leading range and short-field performance, even more exclusive city pairs are now achievable, including Dubai-Houston, Singapore-Los Angeles, London-Perth, and many others.

© 2022 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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Berkshire Hathaway HomeServices

Berkshire Hathaway HomeServices Expands in the Midwest

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices has announced the opening of Berkshire Hathaway HomeServices True Realty, signifying the brand’s continued growth in the Midwest region.

Berkshire Hathaway HomeServices True Realty is owned and operated by Josh Lamp, Bailey Fedler, Laura Parman, Conrad Gorman, Marilee Gorman and Jonathan Horsfall. Located in the city of Madison, the office will serve the surrounding region including Greater Dane County and beyond.

“As the Madison area real estate market continues to evolve, this is an exhilarating time for us to announce our new name under the Berkshire Hathaway HomeServices brand,” said Bailey Fedler, Co-Owner, Berkshire Hathaway HomeServices True Realty. “This brand will provide our agents the opportunity to embrace the Forever Brand and become a Forever Agent, and to be a trusted advisor not only during the transaction but forever.”

“We are pleased to launch a new office in Madison, Wisconsin,” said Christy Budnick, CEO, Berkshire Hathaway HomeServices. “The area boasts a lifestyle and culture that few other places can match. Offering clients superior, personalized service is what Berkshire Hathaway HomeServices True Realty is known for and with the addition of this location they will be able to expand their footprint, serving the greater Madison area.”

By joining the network, Berkshire Hathaway HomeServices True Realty agents gain access to Berkshire Hathaway HomeServices’ active referral and relocation networks, and its “FOREVER Cloud” technology suite, a powerful source for lead generation, marketing support, social media, video production/distribution and more.

The brand also provides an exclusive Luxury Collection marketing program for premier listings. Its Prestige Magazine showcases network members’ premium listings with a strong lineup of feature stories covering topics that appeal to high-end real estate clients.

© 2022 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.