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Minority Stock Positions Stock Portfolio

BYD Debuts Two New Battery-Electric Heavy-Duty Trucks

(BRK.A), (BRK.B)

Berkshire Hathaway-backed BYD has unveiled two battery-electric heavy-duty trucks, the Gen3 8TT and 6F, vehicles that combine performance, reliability, and driver comfort into stylish designs.

Unveiled at the ACT Expo in Long Beach, Calif., the Gen 3 8TT and 6F feature cabs styled by Wolfgang Josef Egger, the renowned former Audi chief designer. The stylish cabs offer improved aerodynamics and energy efficiency.

The trucks come standard with Advanced Driver-Assistance Systems (ADAS), making driving easier and safer.

The trucks are equipped with an Electronic Parking Brake system, offer keyless entry and push to start functions, and have up to 185kW CCS1 charging capability. The extended range version of the 8TT and 6F offer a range of up to 200 miles on a charge.

Gen 3 8TT is a versatile vehicle, capable of performing drayage, regional haul, and distribution work. The 6F can perform regional haul and distribution work. It can also be equipped with a body for refuse collection.

“We listen to our customers and their drivers to ensure we provide the features and performance they need to get a job done,” said Stella Li, President of BYD North America. “With our next generation 6F and 8TT, we’re making history by setting a new standard for driver comfort and safety in an electric vehicle.”

BYD Electric Trucks operate clean and quiet, and have significantly fewer moving parts than carbon-burning trucks. With less noise and vibration than conventional vehicles, BYD trucks provide the operator with an improved driving experience and safer work environment.

BYD, the world’s largest manufacturer of electric vehicles, is the leader in battery-electric truck deployments with more than 8,000 trucks in service around the world and over 200 in service across the United States.

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.

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Lessons From Warren Buffett Value Investing

Lessons From Warren Buffett: What the Wise Man Does in the Beginning, the Fool Does in the End

Excessive speculation, it’s the downfall of investors and markets time and time again, but as Warren Buffett notes, it often begins benignly when early investors see a previously unrecognized opportunity. However, as word of the opportunity starts to spread, it soon loses all relationship to underlying fundamentals and becomes nothing but sheer speculation and is doomed to end badly.

“It’s that old story of what the wise man does in the beginning, the fool does in the end,” Warren Buffett noted at the 2006 Berkshire Hathaway Annual Meeting. “And with any asset class that has a big move, that’s based initially on fundamentals, is going to attract speculative participation at some point, and that speculative participation can become dominant as time goes by.  And, you know, famous case always being tulip bulbs, I mean, tulips may have been more attractive than dandelions or something, so people paid a little more money for them. But once a price history develops that causes people to start looking at an asset that they never looked at before and to get envious of the fact that their neighbor made a lot of money without any apparent effort because he saw this early and so on, that takes over.”

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 HomeServices of America

Berkshire Hathaway’s HomeServices of America Adds 400 Agents With Latest Acquisition

(BRK.A), (BRK.B)

Berkshire Hathaway’s HomeServices of America, Inc. has acquired of Berkshire Hathaway HomeServices Hudson Valley Properties, the leading real estate company in the Mid-Hudson Valley market for 29 consecutive years.

Financial terms were not disclosed.

Founded in 1980 by Steven Domber and headquartered in LaGrangeville, New York, Berkshire Hathaway HomeServices Hudson Valley Properties serves the counties of Dutchess, Ulster, Orange, Columbia, Putnam and Westchester with more than 400 agents in 13 offices.

For the 12 months ending in June 2021, Hudson Valley Properties closed nearly 4,300 units representing $1.53 billion of sales volume, earning more than a 24% market share.

The company originally joined the Berkshire Hathaway HomeServices network as an independent franchisee in 2014, and with this transaction, joins the HomeServices of America family of wholly owned companies.

Hudson Valley Properties ranks #303 among top 350 real estate brokerages in the United States and is a member of the prestigious Berkshire Elite Circle, ranking #31 in the top 50 brokers of the network worldwide. Domber, founder and president of Berkshire Hathaway HomeServices Hudson Valley Properties, is active in the real estate industry on both the state and national levels. He will continue in his current role as president running the day-to-day operations along with his sales management and leadership team.

HomeServices of America has earned the ranking of the largest real estate company based on closed transactions since 2019.

© 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 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

BYD Brings Together All Its Green Technologies for Its China Headquarters

(BRK.A), (BRK.B)

BYD’s China headquarters has officially launched its “Zero Carbon Industrial Campus” in Pingshan, which will become the first zero-carbon headquarters of Chinese automobile brands.

Founded in September 2006, BYD Pingshan Industrial Campus covers an approximate area of 7.6 million square feet, employing approximately 50,000 people.

The Pingshan Industrial Campus brings all of BYD’s green solutions such as photovoltaics, energy storage, new energy vehicles, the SkyRail monorail, and SkyShuttle to all aspects of production and life in the campus.

For example, BYD has built an intelligent green multi-level rail transit system, new energy vehicles, energy storage systems, and new energy vehicle charging stations on the campus. BYD has now expanded its emission reduction efforts to the daily production and operation of the company. BYD strives to create a green ecological environment for the entire campus through its internal green recycling system.

One of BYD’s representatives stated that “Pingshan’s first ‘Zero Carbon Industrial Campus’ project will become an important case study with rich experience accumulated, paving the way for BYD’s company-wide carbon emission reduction and carbon neutrality.”

In the construction of the “Zero Carbon Industrial Campus,” BYD has strengthened its carbon emission reduction actions concerning the energy structure, industrial structure, transportation, procurement, production, and operation of the campus. Concurrently, based on environmental technologies, BYD can achieve energy conservation and emission reduction products and solutions.

Promoting carbon emission reduction and achieve carbon neutrality requires an accurate understanding of where carbon emission comes from, knowing how to compile emission data, applying green energy more efficiently, and devising efficient industry strategies. To this end, BYD has invited SGS, the world’s leading testing, inspection, and certification company, to provide consulting, certification, and technical support for the project.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value over thirty-fold.

© 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.

Categories
Lessons From Warren Buffett

Lessons From Warren Buffett: What We Learn From History Is

Despite all the boom and bust cycles of the past, Warren Buffett notes that when it comes to people learning from the past, there is one very important lesson that can benefit investors.

“What we learn from history is that people don’t learn from history,” Warren Buffett said at the 2004 Berkshire Hathaway Annual Meeting. “And you certainly see that in financial markets all the time.”

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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Lubrizol

Lubrizol to Build Additive R&D Center in Shanghai

(BRK.A), (BRK.B)

Berkshire Hathaway’s The Lubrizol Corporation has signed an investment intention agreement with Songjiang District People’s government, which outlined Lubrizol’s commitment to increasing investment, including setting up an R&D center and further enhancing its capabilities to drive continuous growth in China market.

On July 28, the Shanghai municipal government held a group signing ceremony for foreign investment projects in Shanghai. Lubrizol was invited to participate and signed the investment intention agreement.

As part of its commitment, Lubrizol will invest in the construction of a new “Lubrizol lubricant additive R&D center” in Songjiang, Shanghai. As an important part of Lubrizol’s global R&D network, the Shanghai R&D center will be responsible for research, design and testing of additive solutions for the Chinese transportation market, including fuel vehicles, hybrid vehicles and new energy vehicles, providing customers with reliable solutions that help the world Move Cleaner by extending product life, reducing emissions and reducing environmental impact.

Dong Jian-Wei, vice president of Lubrizol Additives in Asia Pacific, who attended the signing ceremony, said, “China continues to be an important growth region for the transportation industry, and we look forward to advancing this growth through a local R&D and innovation center to support local needs.”

He added: “Under the guidance of China’s ‘2030.2060’ dual carbon goal, many industries, including the automotive industry, are facing increasing demands for more sustainable solutions. We believe that this R&D center close to the local market will strategically improve our core technical capabilities locally, accelerate the implementation of the overall R&D strategy and objectives of the business, and support our customers.”

Since entering the Chinese market, Lubrizol has established production bases, R&D and technical service centers in Zhuhai, Guangdong and Songjiang, Shanghai to provide customers with valuable technical solutions and promote the rapid development of the company’s business in China.

© 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 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

Berkshire Hathaway Specialty insurance Names Constanza Gállegos as Country Manager, Spain

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance has added Constanza Gállegos to its leadership team in Europe as Country Manager, Spain.

Constanza has nearly 24 years of experience in the European insurance industry. Most recently, she was Head of Distribution, Europe, at QBE Insurance, where she spent 14 years in increasingly senior positions. She holds Bachelor of Laws, Bachelor of Economics & Bachelor of Business Administration degrees from Universidad Pontificia Comillas.

“BHSI has been expanding rapidly, bringing consistency and stability to customers across Europe,” said Chris Colahan, Head of Europe, BHSI. “With her extensive industry experience and relationships, Constanza will play a pivotal role in accelerating our growth in Spain, and we are excited to welcome her to our team.”

© 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 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
Minority Stock Positions Stock Portfolio

BYD UK and ADL Deliver EV Buses to New Zealand

BRK.A), (BRK.B)

Berkshire Hathaway-backed BYD UK through its partnership with Alexander Dennis Limited (ADL) jointly announced the delivery of the first three-axle BYD ADL Enviro200EV XLB in New Zealand.

Built in New Zealand by ADL’s partner Kiwi Bus Builders on a BYD chassis, the delivery fully supports New Zealand’s transition to a decarbonized bus fleet by 2035. Joining the Auckland Transport fleet, the zero-emission bus will be evaluated in New Zealand’s largest city on trials sponsored by Mercury Energy.

To meet the requirements of local transport authorities and operators, the Enviro200EV XLB is a new step in the evolution of the successful combination of BYD’s battery technology and ADL’s expertise in tailoring buses. This 41-foot-long electric bus has three axles and provides a total passenger capacity of 78 ensuring operational flexibility. Additionally, 36 passengers can be seated, and two wheelchair spaces are provided which are accessed via a manual ramp at the front door.

ADL’s General Manager in New Zealand, Tony Moore, said: “The launch of our extra-large electric bus marks an exciting new chapter in our partnership with Auckland Transport. After bringing the first electric buses to the city in 2018, we now have a zero-emission bus that is fully designed to New Zealand requirements – and is made locally, boosting the economy and supporting skilled jobs.”

Auckland Transport Metro Decarbonization Manager, Darek Koper said: “This trial fleet provides a range of options for New Zealand bus operators and it will build operator confidence in new technology. It will also allow them to understand operational requirements and costs to inform future procurement decisions, while supporting the accelerated transition to zero-emission buses in Auckland.”

The launch vehicle has been wrapped in an advertisement for energy supplier Mercury Energy, which will support the trial of the electric bus.

“We have delivered a lot of BYD/ADL electric buses to several cities in New Zealand together with ADL,” said Wing You, BYD’s General Manager for Australia and New Zealand. “This is a great privilege for BYD to work together with local manufacturers to help the local government speed up the transition to zero-emission electric buses by 2035, and so far we have completed over 600,000 miles in operation, helping to cut more than 1,000 tons of CO2 emissions.”

At present, BYD is successfully serving markets in many other countries across the Asia-Pacific, including Japan, Korea, Singapore, Australia, India, etc. Globally, the brand’s pure electric vehicles cover over 300 cities, operating in more than 50 countries and regions.

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.

Categories
Appointments Lubrizol

Breaking News: Chris Brown Replaces Eric Schur as Lubrizol’s CEO

(BRK.A), (BRK.B)

There is a major leadership change at Berkshire Hathaway’s Lubrizol. Chris Brown has replaced Eric Schnur as CEO, and now has the title of President and Chief Executive Officer.

Schnur had served as chairman, president and chief executive since 2017.

As of this writing, Lubrizol has not issued a statement about the change in leadership, but has removed Schnur’s bio and his “Message from Lubrizol’s CEO” page from its website.

Lubrizol has been snakebit with fires recently, with a major fire destroying a Lubrizol plant in Rouen, France in September 2019, and its Chemtool plant in Rockton, Illinois, was gutted in a blaze on Jun 14, 2021.

The Chemtool fire has been determined to have been caused by a leak of mineral oil from piping in the area of work being performed by an employee of an outside contractor working on an insulation replacement project.

© 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.

Categories
Lessons From Warren Buffett

Lessons From Warren Buffett: You Can Overpay Even if It’s an Outstanding Company

Are some companies so outstanding that it is worth paying any price for them? It is a question that is worth asking when stock prices reach truly stratospheric heights.

Back in 1997, in his Chairman’s Letter to Berkshire Hathaway’s shareholders, Warren Buffett singled out Coca-Cola and Gillette as companies that he labeled as “The Inevitables.” Buffett was referring to companies that “will dominate their fields worldwide for an investment lifetime.” However, at that year’s annual meeting, in response to a shareholder’s question, he did clarify that even a company that is an “Inevitable” can be priced too high to be a good investment.

“But you can pay too much, at least in the short run, for businesses like that,” Warren Buffett said at the 1997 Berkshire Hathaway Annual Meeting. “So, I thought it was only appropriate to point out that no matter how wonderful a business it is, that there always is a risk that you will pay a price where it will take a few years for the business to catch up with the stock. That the stock can get ahead of the 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.