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BNSF

BNSF, Caterpillar & Chevron Announce Hydrogen Locomotive Demonstration Project

(BRK.A), (BRK.B)

Progress Rail, a Caterpillar Inc. Company, BNSF Railway Company and Chevron U.S.A. Inc., a subsidiary of Chevron Corporation have signed a memorandum of understanding (MOU) to advance the demonstration of a locomotive powered by hydrogen fuel cells.

The goal of the demonstration is to confirm the feasibility and performance of hydrogen fuel for use as a viable alternative to traditional fuels for line-haul rail. Hydrogen has the potential to play a significant role as a lower-carbon alternative to diesel fuel for transportation, with hydrogen fuel cells becoming a means to reduce emissions.

Under the MOU, the parties are working toward reaching definitive agreements on a demonstration with three primary objectives. First, Progress Rail plans to design and build a prototype hydrogen fuel cell locomotive for line-haul and/or other types of rail service. Second, Chevron expects to develop the fueling concept and infrastructure to support this use of the locomotive. Lastly, the prototype hydrogen fuel cell locomotive is expected to be demonstrated on BNSF’s lines for a mutually agreed upon period of time.

“Caterpillar has made great strides in moving our advanced power technology forward. Our Progress Rail team will leverage that knowledge and experience toward a hydrogen fuel cell locomotive,” said Joe Creed, Caterpillar group president of Energy and Transportation. “Working with Chevron and BNSF will allow us to advance hydrogen technology across the industry.”

“BNSF is pleased to collaborate with Chevron and Progress Rail in piloting locomotives powered by hydrogen fuel cells,” commented John Lovenburg, vice president of Environmental for BNSF. “This technology could one day be a lower-carbon solution for line-haul service, as it has the potential to reduce carbon emissions and remain cost competitive.”

“Chevron is dedicated to scaling up its hydrogen business to help meet the needs of customers who want to reduce the lifecycle carbon emissions of their operations,” said Jeff Gustavson, president of Chevron New Energies. “Our work with Progress Rail and BNSF is an important step toward advancing new use cases for hydrogen in heavy duty transport, as we seek to create a commercially viable hydrogen economy.”

As previously announced, Caterpillar Inc. is collaborating with Chevron for the demonstration of hydrogen projects in transportation and stationary power applications.

The proposed demonstration project is subject to the negotiation of definitive agreements with customary closing conditions, including regulatory approval. If established, additional details about the hydrogen locomotive demonstration, including where the initial pilot will take place and its timing, will be released at a later date.

© 2021 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 Adds Brokerage in Mexico

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Berkshire Hathaway HomeServices, a global residential real estate brokerage franchise network, is pleased to announce its further expansion into Mexico welcoming Berkshire Hathaway HomeServices Los Cabos Properties.

The brokerage will be led by industry trailblazer, Ian Gengos.

Originally from Australia, Ian lived and worked throughout Canada and the Caribbean for years before choosing to settle in Los Cabos. A working vacation turned into a career change, a fresh outlook on life, and a focus on the things in it that mattered most. Ian’s experience and knowledge of the Baja California Sur area provide clients with a seamless experience from start to finish.

“We joined Berkshire Hathaway HomeServices due to the exceptional global network, support and tools they offer,” said Ian Gengos. “My team and I are thrilled to bring this value to home buyers and sellers in Los Cabos. There has been tremendous evolution and growth in the Los Cabos luxury property market, and I am just as excited now for my clients as I was for my own family years ago when I moved to this location.”

The real estate market in Cabo San Lucas is booming like never before, and there’s no sign of a slowdown anytime soon. The destination is a mainstay vacation home spot for buyers from California and Texas, and while sales have generally been strong over the years, they’ve exploded since the onset of the pandemic.

“Our global network is extremely proud to welcome Berkshire Hathaway HomeServices Los Cabos Properties. We are excited for their future with the network and look forward to having a larger footprint in Mexico,” said Christy Budnick, CEO, Berkshire Hathaway HomeServices.

Berkshire Hathaway HomeServices Los Cabos Properties agents will have 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. Berkshire Hathaway HomeServices has aligned with best-in-class technology platforms to deliver world-class support to its network members far into the future.

The newly added brokerage will also have full access to the revolutionary Real Estate I.Q. System®. The system combines the Berkshire Hathaway HomeServices brand, marketing resources and technology with continuing education, training, mentoring and consulting. The brand also provides global listing syndication, professional training and ongoing education and the 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.

Gino Blefari, Chairman of Berkshire Hathaway HomeServices, also welcomed the company to the network, “It is with great pleasure that we welcome Ian Gengos and his dynamic team of agents to our global network. We look forward to supporting them in their mission of opening additional offices throughout the region.”

© 2021 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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Appointments Berkshire Hathaway Specialty Insurance

Berkshire Hathaway Specialty Insurance Ups Angela Meyer to Head of Life Sciences, North America

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Berkshire Hathaway Specialty Insurance has promoted Angela Meyer to Head of Life Sciences in North America. She was previously Head of Life Sciences for the Southeastern region of the U.S.

“Angela has played a major role in building our North American Life Sciences portfolio for the last seven years, bringing exceptional technical acumen and creative problem-solving to these complex and evolving risks,” said Steve Harris, Vice President, Casualty, BHSI. “In her new role, she will lead our efforts to further expand BHSI’s presence in the Life Sciences market with our stable capacity, financial strength and CLAIMS IS OUR PRODUCT philosophy.”

Angela joined BHSI in February 2014, and has nearly 20 years of experience in the insurance industry.
BHSI provides Products Liability, Professional Services Liability and Clinical Trials Liability coverage for Life Sciences companies, including multinational programs with local policy issuance capabilities in 170 countries.

Angela will continue to be based in Atlanta.

© 2021 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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Lessons From Warren Buffett

Lessons From Warren Buffett: No Secrets in This Business That Only the Priesthood Knows

Is there a secret formula to success in the stock market? Warren Buffett says absolutely not. The tools you need to be successful are right there out in the open. He points to Benjamin Graham’s The intelligent Investor as one example, and Buffett says “the advice I would give is to read everything in sight.”

“There are no secrets in this business that only the priesthood knows,” Warren Buffett said at the 2005 Berkshire Hathaway Annual Meeting. “We do not go into temples and look at tablets that are only available to those who have passed earlier tests or anything. It’s all out there in black and white. It’s a simple business.”

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2021 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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Acquisitions Kraft Heinz

Kraft Heinz Buys Germany-Based Spice Company

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The Kraft Heinz Company is acquiring an 85% stake in Germany-based Just Spices GmbH. The remaining 15% ownership stake will be retained by Just Spices’ three founders, who will continue on with the company and focus on driving the business and its international growth.

Launched in 2014, Just Spices is an innovative start-up, trailblazing the high-growth taste elevation category with annual sales of approximately €60 million.

Its 170-plus product portfolio includes spice blends, salad dressings, and easy-to-prepare “In Minutes” blends for diverse meal occasions ranging from breakfast and light snacks to salads and baking, with a broad range of savory, sweet, classic and exotic flavors. Just Spices’ rapidly growing spice revolution business sells approximately 70% of its ready-made and one-step spice blends directly to consumers, with its remaining sales through major grocery retailers both in-store and online in Germany, Spain, Austria, and Switzerland.

Just Spices’ data-driven product innovation has successfully been geared towards the needs of today’s Gen Y and Gen Z consumer, with approximately 1.6 million followers across the company’s social media platforms. Its advanced analytics knowledge has enabled Just Spices to create and identify early consumer trend signals, foster product innovation, understand customer sentiment, and optimize consumer targeting.

“This is a great opportunity to further accelerate our growth agenda by strengthening our ability to anticipate trends in consumer tastes and preferences, as well as our speed to innovate,” said Rafael Oliveira, International Zone President at Kraft Heinz. “We will leverage our scale and agility to accelerate Just Spices’ business in the fast-growing taste elevation market beyond its current German base and its recent market entries in Spain, Austria, and Switzerland. We also see tremendous potential to strengthen and enhance our own direct-to-consumer operations and go-to-market expansion.”

“In the last few years, Just Spices has been further strengthening its successful omni-channel approach, with some of the best-in-class direct-to-consumer analytics in the food space. We are extremely excited by the potential for expansion that comes from combining Just Spices’ innovation and brand power with the Kraft Heinz team and the scale they bring to the table,” said Florian Falk, Just Spices CEO and one of the company’s three founders.

The deal is subject to customary closing conditions, including merger control approval, and is expected to be completed in the first quarter of 2022.

© 2021 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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Kraft Heinz

Kraft Heinz to Combine U.S. and Canada Businesses to Form the North America Zone

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The Kraft Heinz Company (which is 26.6%-owned by Berkshire Hathaway) will combine its U.S. and Canada businesses to create the North America Zone, which is expected to be effective in the second fiscal quarter of 2022.

The move is meant to advance the global food and beverage leader’s long-term, sustainable growth plans—which were first outlined at its Investor Day event in September 2020—by bringing increased agility to its innovation agenda, operations, and go-to-market approach.

The Company’s U.S. and Canada businesses accounted for approximately 80% of its 2020 consolidated net sales.

In the last 12 months, Kraft Heinz has taken multiple steps to transform its overall growth profile, strategic focus, and financial flexibility, including divesting certain assets in its global cheese and nuts businesses. The Company has also centered its business around a consumer-first approach, significantly investing in its portfolio, digital solutions, customer relationships, and people.

The Company believes the creation of the North America Zone will further fuel Kraft Heinz’s vision to leverage its scale through improved agility for competitive advantage. Structural changes to support the strategic plan are aimed at streamlining and synergizing the U.S. and Canada businesses. This evolved model is expected to help the North America Zone pilot high-value products, processes, and service innovations, backed by the resources of the two countries, while also increasing speed to market.

“As consumer, customer, and employee needs change, we must be in a position to anticipate, adjust, and respond with speed,” said Miguel Patricio, Chief Executive Officer of Kraft Heinz. “Combining our U.S. and Canada businesses—two dynamic Zones—gives us a distinct advantage and will produce faster, more effective results so we can continue investing in our strategic plan and driving sustainable growth. While this is an evolution to our structure, it is part of a broader revolution in how we will work at Kraft Heinz going forward.”

As a result, the following leadership changes are being made:

• Kraft Heinz’s new North America Zone will be led by Carlos Abrams-Rivera, currently U.S. Zone President. Since joining Kraft Heinz in February 2020, Abrams-Rivera has been instrumental in reigniting growth in the U.S. business, the Company’s largest Zone. Abrams-Rivera will assume the title of North America Zone President.

The North America Zone structure will include three commercial business units that will be organized around the Company’s consumer-driven product platforms and geographic needs, including:

• Taste, Meals, and Away From Home will be led by Pedro Navio, currently President of Latin America, and includes the Taste Elevation and Easy Meals Made Better consumer platforms as well as the U.S. foodservice and ingredient businesses

• Fresh, Beverages, and Desserts will be led by Steve Cornell, currently President – Enhancers, Specialty, and Away From Home, and includes the Fast Fresh Meals, Easy Indulgent Desserts, Real Food Snacking, and Flavorful Hydration consumer platforms

• Canada and North America Coffee will be led by Adam Butler, currently President – Kids, Snacks, and Beverages

The Company is also pleased to announce the appointment of Robert Scott as President of Research & Development – North America.

Scott joins Kraft Heinz from Abbott Nutrition where he most recently served as Divisional Vice President of Global Product Development. In this role, he successfully delivered a wide range of product solutions that met the diverse needs of consumers and retailers, as well as led the development of products to support Abbott Nutrition’s medical, institutional, and clinical businesses globally. Prior to Abbott Nutrition, Scott was Vice President of Research & Development- Latin America for The Coca- Cola Company where he delivered consumer-centric product innovations, as well as packaging solutions to support environmental and sustainability goals.

In his new role at Kraft Heinz, Scott will be tasked with leading Research and Development for the Company’s core business, renovation and innovation agendas, and commercialization strategy. His proven success in building Research & Development teams around agile ways of working coupled with his deep understanding of next generation ingredients, packaging innovations, and nutrition makes him uniquely positioned to advance Kraft Heinz’s North America portfolio strategy which is centered around creating more sustainable solutions.

Long-time Company executive Bruno Keller, currently Canada Zone President, will assume the position of President of Latin America, part of the Company’s International Zone.

Navio, Cornell, Butler, and Scott will report directly to Abrams-Rivera under the new structure.

The North America Zone will begin structural transitions in early 2022 with full organizational and financial reporting changes expected to take effect at the start of its second fiscal quarter next year.

© 2021 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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NetJets

NetJets Returns to China Market With Amber Aviation Partnership

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Berkshire Hathaway’s NetJets is returning to the China market by partnering with Shenzhen, China-based Amber Aviation. The partnership will see NetJets provide up to 20 aircraft to Amber, with the first aircraft to be delivered in April 2022.

The partnership will be part of a new Jet Card, membership club and shared lease programs. In addition to planes, NetJets will also provide service support, sales assistance, product design and legal support.

“This partnership with Amber Aviation offers NetJets a unique opportunity to provide long-term service in the Asian Market to our owners,” said NetJets Chairman and CEO Adam Johnson. “The team at Amber Aviation shares NetJets’ commitment to safety and service, and is a truly collaborative partner that we look forward to working with alongside our respected co-investors.”

Amber Aviation chairman Chang Qiusheng first joined the aviation sector in 1981 and has served in various management positions in the field for over 30 years. Prior to founding Amber Aviation, Mr. Chang established Business Aviation Asia Limited where he served as Chairman and General Manager. He guided the firm to become the largest business jet management company within a period of ten years. Mr. Chang has also served in senior management positions in Beijing Air China Aviation Service Corp., Air China VVIP Office and Air China Business Jet.

This is not the first go around for NetJets in China. NetJets previously had a China joint venture formed in 2012 with Hony Jinsi Investment Management (Beijing) Ltd and Fung Investments, but the partnership was scrapped in 2017.

© 2021 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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Lessons From Warren Buffett

Lessons From Warren Buffett: You Cannot Get Rich With a Weather Vane

There is a never ending stream of investment advice and opinion, and there are lots and lots of investing approaches, but one thing Warren Buffett is very clear on is that constantly changing your strategy based on what people are saying is not the path to wealth.

“You cannot get rich with a weather vane,” Warren Buffett said at the 1994 Berkshire Hathaway Annual Meeting. “Anytime I see some article that says, you know, these analysts say this or that about some business, it just, it doesn’t mean anything to us.”

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2021 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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Appointments McLane

McLane Grocery Names New President

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Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice solutions, has appointed Chris Smith as its new President of McLane Grocery, a $33 billion business unit providing supply chain solutions to over 70,000 retailer locations.

Before joining McLane Company, Smith worked at Walgreens Boots Alliance, a global leader in retail pharmacy, as the Senior Vice President – Chief Supply Chain Officer. He oversaw supply chain functions for 9,200 U.S.- based Walgreen stores through 16 distribution centers and 9,000 warehouse employees. Before Walgreens, he served as the Executive Vice President – Chief Supply Chain Officer at C&S Wholesale, the largest grocery wholesaler in the country. Smith has also held senior leadership positions in distribution and logistics with McKesson Corporation, a Texas-based leader in healthcare.

“We are very pleased to have Chris join our team,” said McLane Company CEO Tony Frankenberger. “He brings a wealth of supply chain and logistics leadership experience across diverse industries that will contribute to many areas of our business.”

Smith has a Bachelor of Arts in Economics from the University of Massachusetts Amherst and serves on the board of Phillips Pet Food & Supplies.

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 Stock Portfolio

Berkshire Hathaway-backed BYD Sells 70 More eBuses to Finland

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Berkshire Hathaway-backed BYD, the world’s leading eBus manufacturer, has secured another high-volume order for its zero-emission electric buses from Nobina in Finland. Nobina, the largest public transport operator in the Nordic region, has ordered a further 70 latest generation BYD eBuses in a strategic move to expand its fast evolving “green fleet.”

This latest order from Nobina Finland spans two of BYD’s best-selling electric bus models, comprising 42 units of the 42-foot bus model and 28 units of BYD’s 50-foot model. They are scheduled for delivery next summer, 2022 and will primarily operate on city routes in the Helsinki Metropolitan area.

The electric buses benefit from the latest generation BYD Iron-Phosphate Battery technology for optimized battery life and a longer driving range. The 42-foot model delivers a single charge range of 250 miles, while its larger 50-foot counterpart enjoys over 280 miles.

This is Nobina Finland’s second major order for BYD pure-electric buses, having taken delivery of 119 units in the summer of 2021. Combined, these buses have quietly and cleanly driven more than one 620,000 miles in Finland, saving 1400 tons of CO2 emissions. BYD is pleased and proud to support Nobina Finland on its green journey.

Nobina is a high-profile name in sustainable public transport throughout Scandinavia and, like BYD, places great emphasis on reducing pollution and protecting the environment.

The successful commercial relationship between Nobina and BYD, which initially started in 2015, continues to flourish as a result of the close synergy between the two brands and their core values in driving a greener world. Nobina currently has over 300 BYD electric buses operating in towns and cities across Sweden, Norway and Finland.

BYD buses are living up to their reputation for reliability in tough climatic conditions as demonstrated by those vehicles operating in the town of Piteå in North East Sweden. Close to the Artic Circle, Piteå with a latitude of 65.31° north, is the most northerly location in Europe. Thirteen 40-foot buses are in operation in this area following their delivery in May 2021.

Petri Auno, CEO, Nobina Finland, said: “Nobina is totally committed to sustainable transportation and this latest order for additional BYD electric buses is a testament to our strategy to replenish our fleet with clean, zero-emissions solutions that are kind to the environment. We continue to select BYD buses based on their excellent track record for reliability, operational efficiency, performance, safety and of course, for the comfort they provide to our passengers. BYD buses now account for 25% of our Nobina Finland fleet and we look forward to enhancing this in the future.”

Isbrand Ho, Managing Director, BYD Europe B.V., said: “We are delighted to have been awarded another prestigious order from Nobina Finland. Scandinavia is fast embracing eMobility, as demonstrated by the many hundreds of BYD eBuses already in operation across the Nordics. As an established and valued customer, with whom BYD shares so many environmental and ethical values, we are very pleased to support Nobina’s sustainable goals as it continues on its green, electric journey.”

Around 600 BYD electric buses have either been delivered, or are on order, from public transport operators and authorities across 20 cities in the Nordics. These pure-electric, eco-friendly buses have clocked up more than 18.6 million zero-emission miles, reducing CO2 emissions by 32,000 tons.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares for $232 million. It’s an investment that has paid off handsomely. Berkshire’s original investment of $232 million had grown in value to $5.897 billion as of December 31, 2020.

© 2021 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.