Categories
Johns Manville

Johns Manville Producing Nonwoven Media for Face Masks

(BRK.A), (BRK.B)

Berkshire Hathaway’s Johns Manville, a leading manufacturer and marketer of premium-quality building and specialty products, started production this month to make nonwoven filtration media that will be used to create needed face masks to help stop the spread of COVID-19. The filtration media is being produced at its plant in Richland, Mississippi.

“Johns Manville is in a unique position to serve a market that is fulfilling a great need across the world,” said Mary Rhinehart, President and CEO of Johns Manville. “We are proud of our teams in Richland and throughout JM for finding new ways to support the communities and people who are on the front lines of this global crisis.”

Most nonwoven production of face masks was abandoned in the U.S. many years ago and moved to Asia. Given the shortage of face masks in the U.S. and Europe, JM’s Engineered Products business decided to build on its existing capabilities and help fill the market demand.

“Our high-performance nonwoven material is designed to provide high levels of filtration for various types of face masks,” said John Vasuta, President of JM’s Engineered Products business.

JM media meets or exceeds Level 1 BFE 95% (Bacterial Filtration Efficiency) and VFE (Viral Filtration Efficiency) requirements. These results were verified by an FDA-registered national laboratory.

The JM plant in Richland employs about 50 people and produces a variety of filtration products for various air and liquid applications using polypropylene and polyester meltblown technology. Richland’s meltblown filtration media can be found in numerous industrial, automotive, consumer products and FDA-approved food and healthcare applications.

© 2020 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
Minority Stock Positions Stock Portfolio

Berkshire Hathaway to Sell OXY Common Stock it Received in Lieu of Dividends

(BRK.A), (BRK.B)

Berkshire Hathaway has agreed to take common shares of cash-strapped Occidental Petroleum in lieu of its scheduled quarterly preferred stock cash dividends.

Occidental was scheduled to pay Berkshire $200 million in dividends, but will instead see its common shares expand by over 17 million shares.

Berkshire doesn’t plan to expand its equity ownership in the oil and gas exploration and production company, which has seen its stock plummet with the global oil price collapse, and has already registered to sell the 17,274,130 shares that were issued to the holders of record of the Series A Preferred Stock as of March 31, 2020.

As of now, Berkshire owns the 17,274,130 shares through eighteen of its insurance companies, including National Indemnity Company, GEICO, Columbia Insurance Company, and BHG Life Insurance Company.

Occidental will announce its first quarter earnings on May 5, and has already announced a further reduction in 2020 capital spending to between $2.7 billion and $2.9 billion from its original 2020 guidance of $5.2 billion to $5.4 billion, a midpoint reduction of 47 percent.

At current commodity prices, 2020 annual production from continuing operations is expected to be 1,275,000 to 1,305,000 BOEPD, a reduction of 6 percent compared to prior guidance of 1,360,000 to 1,390,000 BOEPD.

© 2020 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 Electronics Named Distributor of the Year by Littelfuse

(BRK.A), (BRK.B)

Berkshire Hathaway’s Mouser Electronics, Inc., the industry’s leading New Product Introduction (NPI) distributor with the widest selection of semiconductors and electronic components, has been recognized as the 2019 High Service Distributor of the Year by Littelfuse, a global manufacturer of leading technologies in circuit protection, power control and sensing.

This is the ninth year that Mouser has been honored with the top award.

“We are proud to recognize Mouser Electronics, a valuable channel partner for Littelfuse,” said Dave Heinzmann, Littelfuse President and Chief Executive Officer. “Mouser delivers outstanding results for Littelfuse, and their commitment to exceptional customer service aligns with our own.”

“We are incredibly honored to receive this top award from Littelfuse for the ninth time,” said Glenn Smith, Mouser’s President and CEO. “Throughout our longstanding partnership we’ve realized many successes together, and we look forward to many more in the future.”

Littelfuse selects the winner of the High Service Distributor of the Year award based on a variety of distributor performance metrics, including overall sales growth, focus product sales, growth in the number of customers served, and the number and quality of creative marketing campaigns that reach customers. Mouser previously won the Littelfuse High Service/Catalog Distributor of the Year award in 2008 through 2011 and in 2014, 2015, 2017 and 2018.

© 2020 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 Insurance

Berkshire Hathaway Specialty Insurance Expands Offerings for UK Financial Institutions, Launches D&O and Civil Liability Policies

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance (BHSI) today announced that it has introduced two new policies tailored expressly for UK financial institutions: Professional First Financial Institutions Civil Liability Insurance, and Executive First Financial Institutions D&O Liability Insurance.

Both policies clearly articulate broad coverage for liability exposures faced by large financial institutions. In an era where managing reputational risk is critical, both policies also include coverage to support crisis management and offer expansive coverage for investigations.

“Executives and professionals across Europe face significant liability exposures, and a volatile market for coverage. BHSI is pleased to provide UK financial institutions with the certainty of broad, clearly-written coverage, backed by the financial strength, stability and claims service of BHSI,” said Thomas Dilley, Head of Financial Institutions, BHSI, UK & Ireland.

Professional First Financial Institutions Civil Liability Insurance includes state-of-the-market features such as continuity coverage and express coverage for claims arising from breaches of privacy. Executive First D&O Liability Insurance includes key features designed to ensure the most reliable coverage for individuals, from automatic reinstatement of Side A limits, to an unlimited discovery period for retired executives.
Last year, BHSI introduced Professional First Asset Management Liability Insurance in the UK and Ireland.

© 2020 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 Insurance

Berkshire Hathaway Specialty Insurance Introduces Management Liability & Association Liability Policies in New Zealand

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance Company expanded its Executive & Professional Lines offerings in New Zealand with the introduction of Management Liability and Association Liability Insurance policies.

“BHSI’s new Management Liability and Association Liability policies reflect our commitment to providing broad coverage in simple, concise wordings to address the multifaceted management liability risks of today’s world,” said Cameron McLisky, Head of Executive and Professional Lines, Australasia. “They also allow us to provide private company and non-profit organizations with sound solutions backed by BHSI’s financial strength and commitment to claims handling excellence.”

BHSI’s Management Liability policy is designed to address the wide range of claims private companies can face. Brokers and Insureds can customize coverage to include Directors & Officers Liability, General Liability, Statutory Liability, Employers Liability, Employment Practices Liability and/or Fidelity Insurance.

The Association Liability policy offers non-profit organizations similar flexibility and coverage tailored to their needs, with the addition of Professional Indemnity protection.

© 2020 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
Minority Stock Positions Stock Portfolio

BYD Donates $1 Million in PPE for First Responders

(BRK.A), (BRK.B)

BYD Motors, LLC., has pledged a donation of $1 million in medical supplies, including PPEs and hand sanitizer to transit agencies and first responders in the United States and Canada.

The supplies are arriving at various U.S. distributions centers to be closer to those locations where they are needed most.

The supplies include FDA-approved Adult Surgical Masks and KN-95 respiratory protective devices as well as hand sanitizer that is 99.999% effective. Several thousand PPEs have already been delivered to agencies that include the City of Los Angeles, the Valley Medical Center in San Jose California, the Toronto Transit Commission and the LA County Sheriff’s Department.

BYD President for North America Stella Li praised first responders and transit agency employees working to stop the spread of COVID-19.

“BYD wants to help those who are helping all of us and believe this is how we can do it best,” she said. “We will get through this together.”

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 almost ten-fold, and is now worth roughly $1.96 billion.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2020 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
GEICO Insurance

GEICO Providing $2.5 Billion to Policyholders Through Policy Credits

(BRK.A), (BRK.B)

GEICO is providing a 15 percent credit to its auto and motorcycle customers as their policy comes up for renewal between April 8 and Oct 7. The credit will also apply to any new policies purchased during this period.

The credit is part of GEICO’s ongoing efforts to assist customers during the Coronavirus pandemic.

The average auto policy has a semi-annual premium of about $1,000 and generally covers more than one vehicle.

GEICO expects credits to average about $150 per auto policy and $30 per motorcycle policy. The company estimates the benefit to its 18 million auto and one million motorcycle customers will be approximately $2.5 billion.

Current customers can expect to see the discount when they renew. Customers do not need to take any action to receive this credit.

Shelter in place policies have reduced driving significantly. Vehicle accidents are down considerably, and although GEICO expects a return to near normal once the impacts of COVID-19 subside, GEICO remains committed to serving its customers’ changing needs in the best way it can.

“This ongoing crisis has widespread effects that will linger. That is why we wanted to give this credit for at least six months,” said GEICO President and CEO Todd Combs. “Our customers have been loyal, and we are committed to doing all we can to help them.”

Last month, GEICO announced it was pausing cancellations of coverage due to non-payment and policy expiration through at least April 30, 2020. Beyond that, the company has committed to offering maximum flexibility to policyholders who need special payment options as well as transitioning nearly all of its associates to work from home to continue providing the 24/7 service it is known for.

© 2020 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 Insurance

Berkshire Hathaway Specialty Insurance Appoints Michael Pille Head of Healthcare Underwriting in Germany

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance has promoted team member Michael Pille to head its fast-growing healthcare underwriting operation and team in Germany.

“As Head of Healthcare, Michael will lead our effort to service the German healthcare market and expand our local healthcare team,” said Andreas Krause, Country Manager for Germany, BHSI. “In this newly created position, Michael will elevate our ability to deliver innovative professional liability solutions for the healthcare industry, including novel SIR (stop loss) alternatives, backed by BHSI’s underwriting expertise and commitment to claims handling excellence.”

Michael, who has more than a decade of underwriting experience in the German market, joined BHSI in 2017 as Senior Underwriter, Liability. He holds a bachelor’s degree in Insurance Management and a master’s Degree in Insurance Law from Cologne University of Applied Science. Michael is a Fellow of the Chartered Insurance Institute.

© 2020 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 Insurance

Berkshire Hathaway Specialty Insurance Rolls Out Professional First Technology Liability Insurance in Australia and New Zealand

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance has launched Professional First Technology Liability Insurance policies in Australia and New Zealand. Both policies clearly articulate broad, customizable professional liability protection for the full scope of services provided by technology and tech-related firms.

“BHSI is committed to simplicity and that is evident in these easy-to-navigate policy forms which are readily tailored to the individual needs and exposures of technology firms and backed by BHSI’s financial strength,” said Cameron McLisky, Head of Executive & Professional Lines for Australasia at BHSI. “We take a partnership approach to this market, with our brokers and customers collaborating with our decision makers, from underwriting, to claims service.

With BHSI’s Professional First Technology Liability Insurance, customers choose any or all of three separate towers to secure professional indemnity, cyber and general liability covers. Limits and coverage can be structured to address the individual needs and preferences of a wide variety of tech firms, including those involved in software design and development, systems integration, technology consulting, telecommunications and IT training.

© 2020 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
Minority Stock Positions Stock Portfolio

BYD Tackles Lithium Battery Fires With Its Breakthrough Blade Battery

(BRK.A), (BRK.B)

BYD has announced the launch of the Blade Battery, a development set to mitigate concerns about battery safety in electric vehicles.

At an online launch event themed “The Blade Battery – Unsheathed to Safeguard the World”, Wang Chuanfu, BYD Chairman and President, said that the Blade Battery reflects BYD’s determination to resolve issues in battery safety while also redefining safety standards for the entire industry.

BYD highlighted a video of the Blade Battery successfully passing a nail penetration test, which is seen as the most rigorous way to test the thermal runaway of batteries due to its sheer difficulty. “In terms of battery safety and energy density, BYD’s Blade Battery has obvious advantages,” said Professor Ouyang Minggao, Member of the Chinese Academy of Sciences and Professor at Tsinghua University.

The Blade Battery has been developed by BYD over the past several years. The singular cells are arranged together in an array and then inserted into a battery pack. Due to its optimized battery pack structure, the space utilization of the battery pack is increased by over 50% compared to conventional lithium iron phosphate block batteries.

While undergoing nail penetration tests, the Blade Battery emitted neither smoke nor fire after being penetrated, and its surface temperature only reached 30 to 60°C. Under the same conditions, a ternary lithium battery exceeded 500°C and violently burned, and while a conventional lithium iron phosphate block battery did not openly emit flames or smoke, its surface temperature reached dangerous temperatures of 200 to 400°C. This implies that EVs equipped with the Blade Battery would be far less susceptible to catching fire – even when they are severely damaged.

The Blade Battery also passed other extreme test conditions, such as being crushed, bent, being heated in a furnace to 300°C and overcharged by 260%. None of these resulted in a fire or explosion.

He Long, Vice President of BYD and Chairman of FinDreams Battery Co., Ltd., covered four distinct advantages of the Blade Battery including a high starting temperature for exothermic reactions, slow heat release and low heat generation, as well as its ability to not release oxygen during breakdowns or easily catch fire.

In the past few years, many EV manufacturers have fallen into a competition for ever-greater cruising range. When the range becomes the prime factor to consider, this focus is then transferred to power battery makers, leading to unreasonable pursuits of “energy density” in the battery industry. It is due to this unpractical focus on “energy density” that safety has been sidelined from power battery development. BYD’s Blade Battery aims to bring battery safety back to the forefront, a redirection from the industry’s tenuous focus on this crucial aspect.

“Today, many vehicle brands are in discussion with us about partnerships based on the technology of the Blade Battery,” said He Long. He added that BYD will gladly share and work with global partners to achieve mutually beneficial outcomes for all industry players.

The Han EV, BYD’s flagship sedan model slated for launch this June, will come equipped with the Blade Battery. The new model will lead the brand’s Dynasty Family, boasting a cruising range of 605 kilometers and an acceleration of 0 to 100km/h in just 3.9 seconds.

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 almost ten-fold, and is now worth roughly $1.96 billion.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2020 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.