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BNSF

BNSF Reaches Tentative Labor Agreement With Union Representing BNSF-Montana Rail Link Workers

(BRK.A), (BRK.B)

Ballots will be mailed on September 9 to eligible members of the Brotherhood of Locomotive Engineers and Trainmen (BLET), regarding the union’s tentative BNSF-Montana Rail Link (MRL) implementing agreement and Oregon Short Line Protective Agreement, according to BLET National President Dennis R. Pierce.

In January, MRL announced it would terminate its lease with BNSF, with BNSF resuming operations on the line.

The implementing agreement governs BNSF’s hiring of the BLET-represented MRL employees, their seniority, work rules, pay, benefits, and integration into the BNSF system. The implementing agreement and Oregon Short Line Protective Agreement govern approximately 500 BLET members who work for the MRL.

Before BNSF took over operations, the Montana Rail Link was a Class II regional railroad based in Missoula, Montana, operating over 900 route miles of track in Montana and Idaho and employing nearly 1,200 workers.

© 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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BNSF

BNSF Has Dramatic Decrease in Past Due Grain Shipments

(BRK.A), (BRK.B)

Berkshire Hathaway-owned BNSF Railway has made dramatic progress in reducing unfilled grain shipments.

According to figures submitted to the Surface Transportation Board for the week of 8/20/22-8/26/2022, there were only 167 orders 1-10 days past due and 34 orders 11+ days past due.

This is a marked contrast to the week of 6/18/2022-6/24/2022 when there were 711 orders 1-10 days past due and 1,199 orders 11+ days past due.

Grain Car Backlog Status Report:

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Following STB’s hearing on “Urgent Issues in Freight Rail Service” in April, BNSF Railway, CSX Transportation, Norfolk Southern Railway, and Union Pacific submitted service recovery plans explaining the specific actions they will take to improve service and identify the specific metrics they will use to evaluate their progress toward such improvements.

Starting June 3, the STB required BNSF Railway, CSX Transportation, Norfolk Southern Railway, and Union Pacific to file service progress reports further explaining efforts to correct service deficiencies. They will continue to file service progress reports every two weeks for six months. Starting June 15, the STB is also requiring all class I railroads to report additional employment data for six months.

© 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: Always Think of Stocks as Businesses

Warren Buffett doesn’t just see stocks as a series of buy and sell prices that are constantly being offered. He always looks at investing as an opportunity to buy a business, whether it is buying the whole business or just a small number of shares.

“It’s very important to have that mindset that we are buying businesses, whether we’re buying 100 shares of something or whether we’re buying the entire company,” Warren Buffett said at the 2013 Berkshire Hathaway Annual Meeting. “We always think of them as businesses.”

Buffett’s full explanation on evaluating the qualitative and the quantitative properties of a business

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 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

Rebecca Liebert Appointed President and CEO of Lubrizol

(BRK.A), (BRK.B)

Berkshire Hathaway’s Lubrizol Corporation has named Rebecca Liebert as the company’s President and CEO, effective October 3, 2022.

Interim President and CEO Mary Rhinehart will continue as Board Chair.

Liebert was most recently Executive Vice President of PPG Industries, a global leader in paints, coatings and specialty materials. She joined PPG in June 2018 leading the automotive OEM coatings business, including PPG’s mobility initiatives. Her final responsibilities included PPG’s global industrial segment businesses, Asia Pacific region oversight, and functional responsibility for global procurement, resin and industrial segment manufacturing.

Prior to PPG, Liebert served as President and CEO of Honeywell UOP, a leading international supplier to the petroleum refining, gas processing, petrochemical production and major manufacturing industries. Prior to joining Honeywell, Liebert served as President of Reynolds Food Packaging.

“Rebecca is a dynamic, passionate and results-driven leader,” said Greg Abel, Vice Chairman of Berkshire Hathaway’s non-insurance operations. “She brings tremendous experience and a record of accomplishments in leading global organizations and driving operational excellence. Most importantly, she is an individual of the highest integrity – a vital quality for leaders. I thank Mary Rhinehart for her strong interim leadership at Lubrizol and for helping position the company for future growth and success.”

“Rebecca is the right CEO at the right time to lead the company,” said Rhinehart. “I am confident Rebecca has the results-driven and employee- and customer-centric mindset that is critical as we move forward. In addition to her impressive career accomplishments, she is an inspirational leader and innovator who will foster a strong culture, while respecting the legacy and values that make Lubrizol the company it is today.”

“I am proud to be part of an organization with over 90 years of innovation in the areas of technology, societal advancement and sustainability,” Liebert said. “I am also excited to be a member of the team building Lubrizol’s future and look forward to working alongside Lubrizol’s dedicated employees to continue delivering solutions and value for our customers and supporting our communities.”

© 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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BNSF

BNSF Reaches Labor Agreement With 3 Unions

(BRK.A), (BRK.B)

Berkshire Hathaway’s BNSF, as well as Union Pacific, and CSX, have reached a tentative agreement with three of their labor unions. The agreement, which covers some 15,000 employees, came about after a Presidential Emergency Board, was created on July 18, 2022.

The three unions are the Transportation Communications Union/IAM, the Brotherhood of Railway Carmen, and the International Association of Machinists and Aerospace Workers.

In a statement released by Transportation Communications Union/IAM, the union noted:

“The Tentative Agreement secures all of the recommendations of PEB 250. Under the terms of this Agreement, employees will receive the highest General Wage Increases ever achieved through National Bargaining – 24% in compounded GWIs over 5 years. The TA protects all great benefits of our Healthcare Plans and includes Healthcare Design enhancements related to the coverage and treatment for Autism Disorder and hearing benefits. It also provides an additional day of paid leave to be designated as an additional Personal Leave Day, Vacation Day or Personal Holiday. The Tentative Agreement also contains a ‘Me-Too’ provision which ensures that in the event any other union reaches an agreement that improves on the terms of this Agreement, TCU/IAM members will receive the same additional value.

This Agreement ensures that every single penny of the recommendations contained in PEB 250 go directly into our member’s pockets. TCU/IAM members will receive thousands of dollars in back pay as well as thousands of dollars from increased wages through this agreement. There is no question – getting to a PEB and receiving these recommendations would never have been possible without all of Rail Labor coming together. The Unions stood together, determined to fight the Carriers proposals to slash healthcare benefits, attack our work rules and eliminate two-man crews. We were successful in that fight.”

© 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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Appointments

Berkshire Hathaway Specialty Insurance Promotes Mohammed Hannoun to Head of Casualty, Middle East

Berkshire Hathaway Specialty Insurance has named Mohammed Hannoun Head of Casualty for the Middle East, based in Dubai.

“Mohammed has played a pivotal role in building up BHSI’s casualty capabilities in Middle East since we started the Dubai operations in 2018. His extensive experience in the region, especially in driving the growth of our medical malpractice and Defense Base Act (DBA) offerings, will be essential in positioning BHSI as the go-to carrier for casualty lines in the Middle East,” said Neeraj Yadvendu, Head of Third Party Lines at BHSI in Dubai.

Mohammed, who has more than 12 years of industry experience in the region, joined the BHSI Dubai team in 2018 as a senior casualty underwriter. He takes the reins of BHSI’s Middle East Casualty portfolio from Emir Erdur, who has transitioned to the casualty underwriting team at BHSI UK.

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

GenStar Launches Real Estate Professionals E&O Program with RPS Signature Programs

(BRK.A), (BRK.B)

Berkshire Hathaway’s GenStar’s Delegated Programs Unit announces the launch of its Real Estate Professionals E&O program with RPS Signature Programs, the program administration division of specialty insurance distributor Risk Placement Services.

GenStar President and CEO Marty Hacala commented, “GenStar has been in the business of insuring real estate companies for the past 20 years. Our longevity in this class of business demonstrates our commitment to supporting the insurance needs of real estate professionals by offering broad coverage including for services as a real estate agent/broker, property manager, auctioneer, short-term escrow agent, and real estate consultant.”

Adrienne Woodhull, RPS Area President, said, “We are pleased to expand our relationship with GenStar through this new E&O program, building upon the success of our E&O appraisers’ program, which we launched earlier this year.”

The Real Estate Professionals E&O coverage includes:

• Limits of up to $2 million
• Contingent Bodily Injury and Property Damage coverage
• Open House and Failure to Disclose Pollution/Environmental Hazards subject to policy limits, Fair Housing coverage
• Free Extended Reporting Period may be available
• Defense costs outside the limits of liability available
• Prior Acts coverage with proof of continuous coverage
• Free risk management assistance hotline for all insureds
• Broad definition of professional real estate business including: Real estate agent/broker, property manager, auctioneer, short-term escrow agent, and real estate consultant

The program is available in the District of Columbia and all states except AK, LA, NY and WV. The District of Columbia and all eligible states will be written on an admitted basis except for the State of California where it will be offered on a non-admitted basis.

Matt Brown, GenStar Senior VP, Delegated Division Manager, noted, “We are excited to build the Real Estate Professional business with RPS. Both organizations have expertise in this line of business. We believe GenStar can deliver a competitive solution that will provide broad insurance protection for real estate professionals.”

© 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: The Rules Are Stacked in Your Favor

One of the most influential books the young Warren Buffett read was Benjamin Graham’s The Intelligent Investor. Buffett has called it “By far the best book on investing ever written.”

In chapter 8 of the book, Graham famously anthropomorphizes the actions of the stock market into the erratic “Mr. Market.” Graham wrote that sometimes the prices for stocks that Mr. Market quotes are reasonable, but sometimes “Mr. Market lets his enthusiasm or his fears run away with him, and the value he proposes seems to you a little short of silly.”

“It’s a marvelous game,” Warren Buffett said at the 2012 Berkshire Hathaway Annual Meeting. “The rules are stacked in your favor, if you don’t turn those rules upside down and start behaving like the drunken psychotic instead of the guy that’s there to take advantage of it.”

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
Pilot Flying J

Pilot Company and Kodiak Robotics Partner to Bring Self-Driving Truck Services to Pilot and Flying J Travel Centers

Pilot Company, the largest operator of travel centers in North America, announced today a strategic partnership with Kodiak Robotics, Inc., a leading self-driving trucking company. Through this partnership, Pilot Company and Kodiak are collaborating to develop autonomous truck services at Pilot and Flying J travel centers.

Pilot Company and Kodiak are in the process of creating an autonomous truckport in the Atlanta area to evaluate potential service offerings and explore scalable solutions. These services will include spaces to pick-up and drop-off autonomous trucking loads; conduct inspections; maintain and refuel trucks; and the ability to transfer data for processing, such as feature development and mapping. To strengthen the ability to work together to develop a solution that works best for its customers, Pilot Company has made a strategic investment in Kodiak and will join the company’s Board of Directors.

“Pilot Company is committed to providing best in class service to its customers today and going forward,” said John Tully, Vice President of Strategy and Business Development at Pilot Company. “In making this strategic investment, we understand that our customers have a need for real solutions that help address the growing demand to move goods and Kodiak is a strong leader in the autonomous trucking space. As we explore the future of autonomous trucks and how we can best support these customers, we will continue to be the travel center network that the trucking industry and professional drivers can count on for the services and care they need.”

Combining Pilot Company’s nationwide network of travel centers and services with Kodiak’s technology will play a crucial role in the deployment of autonomous trucks. Kodiak will lend its expertise as Pilot Company looks to integrate autonomous truck services into its operations. The partnership will further define service and maintenance requirements, operational necessities, facilities planning, and more to meet the needs of autonomous trucks.

“Pilot Company’s industry-leading network of highway-adjacent travel centers provides unprecedented geographic reach for the launch and scale of Kodiak’s fast-growing network of autonomous trucking lanes,” said Don Burnette, Founder and CEO of Kodiak Robotics. “Their customer first approach, with a focus on technology, scale, and infrastructure, makes Pilot Company an ideal partner to support the service and maintenance of self-driving trucks nationwide. We are honored to have Pilot Company as an investor, strategic partner, and supporter of our continued commercial footprint growth.”

Kodiak entered a hyper-growth phase in 2022, significantly expanding its service footprint and partner network. In July, the company announced a partnership with 10 Roads Express, a provider of time sensitive surface transportation for the U.S. Postal Service, expanding the company’s service to Florida. Earlier this year, Kodiak announced a new route between Dallas and Oklahoma City with CEVA Logistics and a route between Dallas and Atlanta with U.S. Xpress. The company has been delivering freight commercially since 2019 and currently has six routes that run regularly between Dallas and Houston, Austin, San Antonio, Atlanta, Oklahoma City and Jacksonville, Florida.


Berkshire Hathaway and Pilot

In 2017, Berkshire Hathaway made a $2.76 billion investment in Pilot, obtaining an initial 38.6 percent stake in the company, and Berkshire will become the majority owner in 2023.

© 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 HomeServices

Berkshire Hathaway HomeServices Expands on Mexico’s Pacific Coast

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices has announced that Applegate Realtors, one of the most respected real estate agencies in Puerto Vallarta and the Banderas Bay region, has joined the global network and will operate as Berkshire Hathaway HomeServices Applegate Realtors.

The company will be owned and operated by Moray Applegate, an industry veteran who has more than 25 years of experience in the Puerto Vallarta real estate market. As one of the most respected real estate agencies in Puerto Vallarta and the Banderas Bay region, the company will continue to nourish relationships with previous clients as well as build relationships with new clients.

“Joining forces with a renowned brand like Berkshire Hathaway HomeServices allows us to provide an added level of global exposure to our clients and listings,” said Moray Applegate, Broker and Owner, Berkshire Hathaway HomeServices Applegate Realtors. “Our company culture is built on trust and integrity, and it was important that we aligned ourselves with a brand that values these same principles.”

“The real estate market in Puerto Vallarta continues to flourish,” said Christy Budnick, CEO, Berkshire Hathaway HomeServices. “Moray and his incredible team have a passion for and are highly respected in this market, and we are proud to welcome them as an affiliate.”

© 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.