Categories
Financials

Berkshire Buys Back $1.05 Billion in Stock in 3rd Quarter

(BRK.A), (BRK.B)

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.

© 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
Berkshire Hathaway HomeServices

Berkshire Hathaway HomeServices Expands in Tennessee and Georgia

(BRK.A), (BRK.B)

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.”

© 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
Insurance

Berkshire Receives Loan Prepayment From Seritage

(BRK.A), (BRK.B)

Berkshire Hathaway now has another $110 million that it needs to invest.

Seritage Growth Properties, a national owner and developer of 150 retail, residential and mixed-use properties, has announced that on October 28, 2022, the Company made a voluntary prepayment of $110 million toward its $1.6 billion term loan facility provided by Berkshire Hathaway Life Insurance Company of Nebraska.

With the prepayment, $1.16 billion of the term loan facility remains outstanding. The prepayment will also reduce Seritage’s total annual interest expense related to the term loan facility by approximately $7.7 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.

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BYD

BYD Plans Rapid Retail Expansion in Brazil

(BRK.A), (BRK.B)

Berkshire Hathaway-backed BYD is aiming for rapid expansion of its retail stores across Brazil, as it boosts its sales of automobiles in the country and partners with Santander Bank to offer customers auto financing.

Currently, BYD has nine stores in the Brazilian market. Its local presence is projected to reach 45 cities by the end of 2022 and reach 100 locations by the end of 2023.

Besides vehicles, BYD Brazil also offers customers overall new energy solutions, which include the generation of clean energy by photovoltaic modules manufactured by BYD.

BYD Brazil has signed a strategic partnership with Santander Bank, the leading bank in automotive financing in Brazil. This will furnish one-stop auto financing services for the customers, from credit analysis, and credit approval, to payment options through a fully digital platform. Also, the partnership will benefit the local dealers to manage and grow their business of electric passenger vehicles.

© 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.

Categories
Lessons From Warren Buffett

Lessons From Warren Buffett: No One Has Been Successful at Predicting the Market

“Where Are Markets Headed? Six Pros Take Their Best Guess” was the headline in The Wall Street Journal. Clearly, much is written, and even more is probably spoken on financial shows, about where the market is headed. Is it at a peak? Is it at the bottom? Will it be higher or lower a week, month or year from now? Warren Buffett thinks that such prognostications are ultimately useless when it comes to actually making money.

“I know of no one that has been successful at, and really made a lot of money, predicting the actions of the market itself,” Buffett said at the 1999 Berkshire Hathaway annual meeting. “I know a lot of people who have done well picking businesses and buying them at sensible prices.”

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
Mouser Electronics

Mouser is Qorvo’s Global Distributor of the Year

Berkshire Hathaway’s Mouser Electronics, Inc. has received the 2022 Global Distributor of the Year — Pinnacle Award from Qorvo, a leading global provider of connectivity and power solutions.

Chosen by Qorvo’s executive sales team, the award recognizes Mouser for its role in strengthening Qorvo’s leadership in cellular and broadband networking, the Internet of Things, and defense and aerospace applications.

“We are pleased to congratulate Mouser Electronics and express our gratitude for their hard work in supporting Qorvo’s growth throughout the world,” said Rodney Hsing, Sr. Sales Director of Major Defense Accounts and IDP Global Distribution at Qorvo. “This award recognizes the important role Mouser has played as our lead internet channel partner, helping us to grow market share in key technology areas, ensuring that all engineers have access to our exceptional connectivity and power devices.”

“We are truly grateful for our ongoing partnership with Qorvo, and we are honored to receive the Global Distributor of the Year award for the second time,” said Jeff Newell, Senior Vice President of Products at Mouser Electronics. “This award reflects the committed efforts of our team in efficiently promoting and distributing Qorvo’s solutions to our global customer base.”

Mouser was previously named Global Distributor of the Year by Qorvo in 2018.

© 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
BYD

BYD-Mercedes D9 MPV Sales Go Through The Roof

(BRK.A), (BRK.B)

Sales of Berkshire Hathaway-backed BYD’s joint venture with Mercedes-Benz, the D9 premium MPV, started deliveries Sunday, and sales are already going through the roof. Presales racked up 30,000 orders for the multipurpose vehicle that they market under the upscale Denza brand.

Engineered and produced in and for the China market, the DENZA brand combines Daimler’s vehicle architecture expertise with BYD’s leading battery technology.

The D9 is offered as both a plug-in hybrid and pure electric vehicle, and the EV boasts a 500KM range.

© 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.

Categories
Lessons From Warren Buffett

Lessons From Warren Buffett: If Their Accounting Confuses You, Stay Away

If in reading a company’s financial reports it doesn’t make any sense to you, then avoid the company all together, Warren Buffett advises.

“I would say that when the accounting confuses you, I would just tend to forget about it as a company,” Warren Buffett said at the 1995 Berkshire Hathaway Annual Meeting. “We have never had any great investment results from companies whose accounting we regarded as suspect. I can’t think of a one.”

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 Appoints Pedro Mairos Global Underwriting Officer, Marine

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance has appointed Pedro Mairos as Global Underwriting Officer, Marine. He was previously Head of Marine for the UK & Ireland at BHSI.

“Our large global footprint coupled with the substantial growth of our Marine business made now the optimal time to deepen the global leadership of our marine underwriting team worldwide,” said Dean LaPierre, Chief Underwriting Officer, Property & Marine, BHSI. “We are pleased to have such a deep bench of talent across both underwriting and claims to service our marine customers and brokers in local markets around the globe.”

Pedro joined BHSI in 2019. He has more than two decades of experience in the global marine market, including Europe, Asia and the Middle East. He will continue to be based in London.

BHSI offers a full range of marine insurance products worldwide, including inland transit, motor truck cargo, warehouse legal liability, builder’s risk, contractor’s equipment, ocean cargo, stock throughputs, project cargo, and marine equipment, including subsea equipment.

© 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
Acquisitions

Berkshire Hathaway Acquires Alleghany Corporation

(BRK.A), (BRK.B)

Berkshire Hathaway and Alleghany Corporation have announced the completion of Berkshire Hathaway’s acquisition of Alleghany.

Holders of Alleghany common stock as of immediately prior to the closing of the transaction are entitled to receive $848.02 per share in cash, representing a total equity value of approximately $11.6 billion.

Upon the closing of the transaction, Alleghany became a wholly-owned subsidiary of Berkshire Hathaway. Alleghany continues to be led by Joe Brandon.

Founded in 1929 by Oris and Mantis Van Sweringen as five railroad systems, the company eventually evolved into a holding company that owns and supports certain operating subsidiaries and investments, anchored by a core position in property and casualty reinsurance and insurance. The company’s primary sources of revenues and earnings are from reinsurance and insurance operations and investments. The insurers include: Transatlantic Holdings, Inc., RSUI Group, Inc., a leading underwriter of wholesale specialty insurance based in Atlanta, Georgia, and CapSpecialty, Inc., an underwriter of a full inventory of specialty lines, including commercial property, casualty, fidelity, surety and professional lines with a focus on small business on both an admitted and non-admitted basis.

Alleghany also generate revenues and earnings from a diverse portfolio of non-financial businesses that are owned and managed through its wholly-owned subsidiary Alleghany Capital.

© 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