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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

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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.

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Minority Stock Positions Stock Portfolio

BYD UK and ADL Deliver EV Buses to New Zealand

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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.

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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.

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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.

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Mouser Electronics

Mouser Electronics is Global High Service Distributor of the Year by TE Connectivity

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Berkshire Hathaway’s Mouser Electronics, Inc. has received the Global High Service Distributor of the Year Award for the seventh time from TE Connectivity, a world leader in connectivity and sensors. The prestigious distribution award recognizes Mouser’s 2020 performance based on sales growth, market share growth, customer growth and business plan performance.

“This is a tremendous honor, and all of us at Mouser wish to thank TE for recognizing the excellent work of our teams across the globe,” said Jeff Newell, Senior Vice President of Products at Mouser Electronics. “TE is an industry leader and valued manufacturer partner, and we are excited to reach our mutual business goals and build on this success together.”

“It is my pleasure to honor the Mouser team with this Distributor of the Year Award for the seventh time,” said Tammy Stine, Global Account Manager at TE Connectivity. “Mouser’s consistent track record of high achievement with TE demonstrates the amazing strength of our business partnership, especially for 2020 in the face of such challenges. We couldn’t be more proud of the sales and customer growth that Mouser achieved for us.”

Mouser previously won the TE Global High Service Distributor of the Year Award for 2013, 2014, 2015, 2016, 2017 and 2019. Additionally, for 2018, Mouser received TE’s Customer Expansion Awards for APAC, Japan and EMEA, along with Americas Distributor of the Year Awards for the Application Tooling Business Unit and Data and TE’s Devices Business Unit.

© 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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Minority Stock Positions Stock Portfolio

Ten BYD Motors Heavy-Duty EV Yard Tractors on the Job at Red Hook Container Terminals

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Ten of Berkshire Hathaway-backed BYD Motors’ heavy-duty zero-emission battery electric yard tractors are now in service at Red Hook Container Terminals container terminal in Port Newark, New Jersey.

The Red Hook fleet represents the single largest deployment of zero-emission battery electric trucks in the eastern United States and the first at a Port Authority of New York and New Jersey marine terminal.

The heavy-duty zero emission battery electric yard tractors are being used to move cargo containers at the Red Hook Marine Terminal in Port Newark and are also being used for making runs to the other terminals at Port Newark and Port Elizabeth and runs to the Millennium Marine Rail yard.

Red Hook operates the cross-harbor barging operation that eliminates tens of thousands of truck trips per year off the roads of New Jersey and New York and so the deployment represents the most recent example of Red Hook’s continuing leading role in the fields of port-related environmental stewardship and global sustainability.

The Red Hook zero-emission battery electric truck fleet project was developed and managed by Climate Change Mitigation Technologies LLC, the leading New Jersey-based developer and manager of zero-emission truck and bus projects for public and private fleets.

The New Jersey Department of Environmental Protection funded a portion of the project using Volkswagen Mitigation Trust funds and Red Hook funded the balance of vehicle and project costs.

CCMT is partnered with Hudson County Motors, Inc. in Secaucus, New Jersey, one of the largest truck dealers in northern New Jersey, and the first BYD Motors truck dealer in the nation.

The BYD model 8Y yard tractors being deployed by Red Hook Container Terminals LLC are third-generation equipment that come with 217 kWh lithium iron phosphate battery packs that have 241 horsepower and are capable of pulling loads of up to 102,000 lbs GVWR. They can operate continuously for up to 12 hours or more before recharging or can operate 24/7 with opportunity charging during shifts. AC and DC charging is available. DC fast charging takes approximately 2 hours from a 20% state of charge. Early operational results indicate that the yard tractor can operate two whole shifts before needing re-charging.

In Long Beach, California, BYD’s yard tractors are just finishing up a one-year demonstration test at International Transportation Service terminal at the Port’s Pier G to test the readiness of the equipment to handle the workload at a busy seaport.

BYD Motors is the leading electric truck and bus manufacturer in the world, with over 14,000 battery electric trucks and 65,000 electric buses deployed worldwide. BYD has US factory operations in Lancaster, CA, and a regional service and parts center in Lodi, New Jersey.

“These zero-emission electric yard tractors do not represent the finish line as far as meeting the seaport’s goal to reduce emissions. But it’s a major step forward,” said Sam Ruda, director of the Port Department of the Port Authority of New York and New Jersey. “It affirms both that the technology is developing rapidly and is applicable to container terminals, and it underscores the role the public and private sectors are playing in making it a reality. Electrifying these yard tractors is strong evidence of how the Port Authority and its partners are moving forward to reduce emissions impacts from cargo operations.”

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

Lessons From Warren Buffett: Intelligent Investor Chapters 8 & 20 Are All You Need to Get Rich

If you are looking for a book that can show you how to get rich, Warren Buffett points to Benjamin Graham’s The Intelligent Investor as the only book you need.

“Chapters 8 and Chapters 20 are really all you need to do to get rich in this world,” Warren Buffett said at the 2012 Berkshire Hathaway Annual Meeting. “And Chapter 8 says that in the market you’re going to have a partner named ‘Mr. Market,’ and the beauty of him as your partner is that he’s kind of a psychotic drunk and he will do very weird things over time and your job is to remember that he’s there to serve you and not to advise you. And if you can keep that mental state, then all those thousands of prices that Mr. Market is offering you every day on every major business in the world, practically, that he is making lots of mistakes, and he makes them for all kinds of weird reasons. And all you have to do is occasionally oblige him when he offers to either buy or sell from you at the same price on any given day, any given security.”

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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Forest River

Lightning eMotors and Berkshire Hathaway’s Forest River Ink Multiyear Agreement for up to $850M in Zero-Emission Bus Technology

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Lightning eMotors, a leading provider of specialty commercial electric vehicles for fleets, and Berkshire Hathaway’s Forest River, Inc. have entered into a strategic partnership agreement to deploy up to 7,500 zero-emission shuttle buses.

The agreement, with a potential estimated value of up to $850 million, calls for Lightning eMotors to build fully electric powertrains and provide charging products, and services for Forest River over the next four and a half years. Lightning eMotors will manufacture the zero-emission-vehicle (“ZEV”) powertrain systems at their 231,000 square foot facility in Loveland, Colorado and ship the powertrains to Forest River’s factory in Goshen, Indiana, for final assembly of the Class 4 and 5 all-electric passenger buses.

Forest River is the leading shuttle bus market producer in North America, with eight manufacturing buildings and more than 500,000 square feet of production space. The Elkhart, Indiana-based company has plans to dedicate 100,000 square feet to install Lightning eMotors’ powertrains.

“This has the potential to be the largest contract ever in the electric shuttle bus market, and we believe it will be the catalyst for other large commercial vehicle OEMs and fleets to accelerate their adoption of commercial electric vehicles,” said Tim Reeser, CEO of Lightning eMotors. “Forest River’s family of shuttle bus companies, including top name brands like Starcraft, Glaval, and Champion, maintain a dominant market position selling over 10,000 units per year in the Class 4 to 6 shuttle-bus space. Forest River’s sales volumes allow us to provide a price point to their dealers and customers that results in a very compelling ROI. We believe this commitment from the largest shuttle bus manufacturer in the U.S. demonstrates that they believe that commercial vehicle customers are now demanding Lightning eMotors’ zero-emission vehicles over ICE vehicles.”

The vehicles that Forest River and Lightning eMotors will co-produce are Class 4 and 5 shuttle buses with gross vehicle weight ratings ranging from 14,500 to 19,500 pounds. The buses will feature battery configurations from 80kWh to more than 160kWh using industry-leading battery thermal management systems. These vehicles support ranges on a single charge between 80 and 160 miles and can recharge over a lunch break using Lightning eMotors’ DC fast charge infrastructure with integrated vehicle-to-grid (V2G) capabilities. Available configurations will have between 12 and 33 passenger seats with ADA options available, and bus lengths of 20 to 34 feet. Other features include a modern digital-dash display, hill-hold functionality for safety, advanced telematics, analytics, and a mobile app for drivers and fleet managers. All vehicles will be compliant with the Federal Transit Administration’s “Buy America” and the Federal Aviation Administration’s “Buy American” guidelines.

“We decided to work with Lightning eMotors after several years of extensive research because of their market and technology leadership in the commercial EV segment,” said David Wright, president of Forest River’s bus divisions. “I was especially impressed after visiting their manufacturing facility in Colorado, driving their vehicles, and talking to their customers. It is clear why Lightning eMotors is at the forefront of fleet electrification. We’ll be providing our customers with a factory-installed electric powertrain that has proven technology relied upon by major fleets, at a price point no one else has been able to achieve. We believe this will be a game changer for shuttle-bus operators.”

Kash Sethi, chief revenue officer of Lightning eMotors, said that the partnership between the companies is important for several reasons. “Transit agencies and other shuttle operators, including airports, parking lots, hotels, and corporate and university campuses, have had an increasing selection of options for large full-size electric buses,” Sethi said. “However, supply for medium-duty electric buses has been limited to smaller EV companies working with regional dealerships to retrofit buses. This model has proven to be neither cost-efficient nor scalable. Now, Forest River is demonstrating it will continue being the leader in the commercial bus market by offering sustainable zero-emission buses as part of their core product portfolio. We believe that will greatly improve the availability of premium-quality, cost-effective electric buses. We look forward to working with Forest River, and their dealer network, in leading the industry through this transformation.”

Forest River’s 100-plus bus dealership locations throughout the U.S. and Canada will have the opportunity to sell and service these vehicles. Manufacturing of Forest River Lightning EV shuttles has already begun, and Forest River expects to deliver several dozens of the new electric shuttle buses to its dealerships by the end of this year.

Lightning eMotors’ charging division, Lightning Energy, will offer a comprehensive suite of charging and charging infrastructure related products and services to Forest River dealers and shuttle-bus operators

© 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
Lubrizol

Lubrizol Partners With Prince Pipes and Fittings Ltd. for Manufacturing and Sale of CPVC Material & Piping Solutions in India

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Berkshire Hathaway’s Lubrizol Advanced Materials, Inc., inventors and the largest manufacturers of CPVC compound worldwide, and Prince Pipes and Fittings Ltd., have signed a definitive agreement of Corzan® CPVC Processor for the manufacturing and sale of Corzan® CPVC Material and Piping solutions in India. With this collaboration, Lubrizol will broaden its product offerings in the Indian industrial piping sector and will strengthen the position of Prince Pipes and Fittings Ltd in the industrial piping systems in India.

Corzan® CPVC will be available across India through Prince Pipes and Fittings Ltd. starting September 2021.

Lubrizol is a pioneer in CPVC piping technology and its Corzan® CPVC has a long history of withstanding high pressures and corrosive chemicals. Corzan® CPVC is known for its reliability, consistency, efficiency, and productivity without disruptions.

It is mainly used for transporting chemicals, industrial water treatment, mineral processing, and oil & gas applications. Corzan® CPVC is recyclable and is used again as an additive in other vinyl compounds in line with Lubrizol’s sustainability goals of Move Cleaner, Create Smarter, Live Better.

Commenting on the collaboration Mr. Nihar Chheda, VP, Prince Pipes and Fittings Limited, said, “We are delighted to associate with Lubrizol once again. Prince Pipes is not about creating products that are different but providing solutions that make a difference. We have driven change in the industry by replacing conventional products, with high-performance user-friendly solutions. The Indian Industrial piping market has huge potential of ~INR. 160 billion. This is today dominated by the conventional MSRL pipes and low adoption of CPVC, which is majorly used only for domestic applications. Whereas globally, Corzan® CPVC pipes are well accepted for Industrial applications. This association strengthens Prince Pipes’ portfolio of existing range of industrial solutions. Prince OneFit with Corzan® CPVC Technology will solve corrosion issues while decreasing the downtime enabling continuous production. This reflects our strong intent to continue to drive high-impact change for higher value creation.”

© 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.