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Samsung Joins Berkshire as BYD Minority Owners

(BRK.A), (BRK.B)

Korean multinational electronics company Samsung Electronics Co., Ltd. has purchased a $449 million (3 billion yuan) stake in Chinese auto and battery manufacturer BYD Co. Ltd.

The move comes after Samsung was not included in a list of foreign battery manufacturers approved by China.

In taking the minority position, Samsung joins Berkshire Hathaway, which owns 9.1% of BYD.

According to Bloomberg, Samsung purchased 52.3 million BYD shares at 57.4 yuan apiece in a private placement, and the purchase will decrease BYD Chairman Wang Chuanfu’s ownership roughly 1.9% to 18.8%.

Berkshire’s stake in BYD has worked out well, as it has seen the value of its investment skyrocket as BYD has become a world leader in a wide variety of areas.

What are those areas?

BYD is number one globally in EV vehicles. The company vaulted to the number one spot in 2015 from only being number ranked seventh a year earlier.

BYD is the number one maker of rechargeable batteries, and like Tesla even has rechargeable battery home storage already on the market.

BYD is number one in pure electric buses that come in a variety of sizes. From commuter buses to buses for long distance travel, BYD has been quietly conquering the world, and frankly right now has no major competitors. In April 2016, BYD achieved a major milestone with the production of its 10,000th pure electric bus.

BYD’s also rapidly growing a host of other products that include LED lighting, photovoltaic panels for solar farms, and other electric vehicles such as forklifts.

As for solar panels, in the U.S., BYD’s already has a solar farm with a total of 109MW using its 270,000 PV modules being developed in California. It also has other projects using its modules, including a 65MW plant in Utah, and a 28MW plant in Arizona.

Perhaps you haven’t heard of BYD, but they are no fly-by-night company. BYD has nearly 180,000 employees working in 22 industrial parks across the globe.

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 is now worth roughly $1.77 billion.

No telling how much Samsung’s shares will appreciate, but they obviously want in on a company that is quickly becoming leading company in both the IT industry and automobile industry.

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

© 2016 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

BYD’s CEO Touts Dramatic Growth of Electric Vehicles in China

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The electric vehicle in China is on a quick path to move from a rarity to a substantial part of the transportation mix.

In a speech given at the World Economic Forum’s Annual Meeting of New Champions 2016 in the city of Tianjin, China, BYD’s CEO Wang Chuanfu stated that “the turning point for new energy vehicles has finally arrived.”

Wang noted that the production and sales of new energy vehicles exceeded 300,000 units in 2015, representing a three-fold growth year-on-year, and accounting for a 1.3% share of overall vehicle sales in China.

He pointed out that it took ten years to go from zero to the current 1%, but it may take only another five years to reach 10%.

Sales of new energy vehicles in China are projected to move up dramatically and are forecast to hit 30% by 2025.

In 2015, BYD became the number one seller of electric cars in the world. It was a dramatic rise for a company that only ranked seventh in 2014.

In April 2016, BYD achieved another major milestone, the production of its 10,000th pure electric bus.

BYD is thoroughly dominating the rapidly growing market for emissions free buses of all sizes.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares, and today owns roughly 9.1% of the company.

It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million is now worth roughly $1.77 billion.

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

© 2016 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

BYD Enters Monorail Business

(BRK.A), (BRK.B)

While Elon Musk touts the future prospects of hyperloops in dealing with future transportation needs, Chinese competitor BYD Co. LTD. is looking towards an existing mass transit technology, the monorail, as part of its answer to urban congestion issues.

According to BYD’s CEO Wang Chuanfu, the BYD’s green mobility platform is not just about cars; the company also plans to promote the implementation of what it calls “three-dimensional green traffic,” and is expanding its reach by entering the monorail industry.

Dramatic Cost Savings Compared to Subways

The electric monorail is a kind of traffic network which interconnects multiple transit backbones in the city at one sixth of the cost of a subway system.

According to Wang, the total market for monorails just in China are in the range of 3 trillion yuan ($450 billion).

BYD is unveiling its first electric monorail with a 4.4 kilometer line at its Shenzhen Headquarters as of September 2016.

The goal is to alleviate the traffic problems of 50,000 factory and management employees.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares, and today owns roughly 9.1% of the company.

It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million is now worth roughly $1.77 billion.

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

© 2016 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

Commentary: Elon Musk Pushes Tesla Towards BYD’s Playbook

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News that Elon Musk wants Tesla to acquire green energy company SolarCity for $2.7 billion in stock was not exactly well received by Tesla investors, with Tesla stock swooning on the announcement. Some accused it of being a bailout of Musk’s SolarCity, which has a need to borrow heavily to fund its rooftop solar panel business.

However, Musk cited the synergies between the companies, which both exploit the move away from fossil fuels.

Whatever you might think of the deal, the one thing worth noting is it would bring Musk’s two companies squarely in line with Chinese vehicle and battery maker BYD Co. Ltd.

BYD is 9% owned by Berkshire Hathaway, and Berkshire has seen the value of its investment skyrocket as BYD becomes a world leader in the same areas that Musk is pursuing.

What are those areas?

BYD is number one globally in EV vehicles. The company vaulted to the number one spot in 2015 from only being number ranked seventh a year earlier.

BYD is the number one maker of rechargeable batteries, and like Tesla even has rechargeable battery home storage already on the market.

BYD is number one in pure electric buses that come in a variety of sizes. From commuter buses to buses for long distance travel, BYD has been quietly conquering the world, and frankly right now has no major competitors. In April 2016, BYD achieved a major milestone, the production of its 10,000th pure electric bus.

BYD’s also rapidly growing a host of other products that include LED lighting, photovoltaic panels for solar farms, and other electric vehicles such as forklifts.

As for solar panels, in the U.S., BYD’s already has a total 109MW using its 270,000 PV modules being developed in California. It also has other projects using its modules, including a 65MW plant in Utah, and a 28MW plant in Arizona.

Perhaps you haven’t heard of BYD, but they are no fly-by-night company. BYD has nearly 180,000 employees working in 22 industrial parks across the globe.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares, and today owns roughly 9.1% of the company.

It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million is now worth roughly $1.77 billion.

Unlike Tesla and SolarCity, BYD is profitable, and it has become profitable using a playbook that is an even bigger version of what Musk is hoping for with his proposed merger.

I don’t know if that playbook will work for Tesla and SolarCity, but it sure seems to be working for BYD.

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

© 2016 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

State of California Boosts Pure Electric Short-Haul Trucks

(BRK.A), (BRK.B)

The State of California is awarding $23.6 million to the South Coast Air Quality Management District (SCAQMD) for a statewide zero-emission drayage truck development and demonstration project.

Drayage refers to trucks that haul freight over short distances.

The funds, from the California Climate Investments program, will reduce key criteria pollutants, greenhouse gases (GHG), petroleum usage and toxic pollution where reductions are needed most. They are also designed to accelerate the commercialization of heavy-duty advanced, zero-emission technologies, establishing a path for implementing SCAQMD’s clean air plan currently under development.

The South Coast air district is teaming up with air districts in the Bay Area, Sacramento, San Diego and San Joaquin Valley to make the project a statewide demonstration of 43 zero-emission battery electric and plug-in hybrid drayage trucks serving major California ports. Demonstration trucks and charging infrastructure will be used in all five air districts, providing emission reduction benefits in key areas of California with drayage truck activity.

“This project will help put the very cleanest short-haul trucks to work where they are needed most, moving cargo from the state’s biggest ports to distribution centers and rail yards,” said ARB Chair Mary D. Nichols. “This is good news – and cleaner air – for all Californians, but especially those who live in neighborhoods next to these industrial facilities or along some of our state’s busiest trade corridors.”

This is the first large-scale demonstration of zero-emission Class 8 trucks that involves major manufacturers, including BYD, Kenworth, Peterbilt and the Volvo Group.

The companies receiving funds have the engineering resources, manufacturing capabilities and distribution networks to support commercialization of advanced technologies related to moving freight to and from the ports.

“BYD is proud to work with the California Air Resources Board, South Coast Air Quality Management District and our fleet partners to advance clean, battery-electric transportation solutions in communities where it is needed most,” said Stella Li, president of BYD Motors. “BYD is a worldwide leader in battery technology and as the OEM providing the most battery-electric trucks under this solicitation, I believe other fleets will take notice and recognize that battery-powered drayage trucks are reliable and available for wider deployment today. We look forward to celebrating the delivery of our first battery-electric drayage truck in the fall of this year.”

The grant award is part of a larger statewide investment in low-carbon transportation projects that are pivotal to meeting California’s ambitious goals to reduce GHG emissions, improve air quality, deploy zero-emission vehicles and reduce petroleum dependency by accelerating the development and deployment of advanced vehicle technologies.

This project is part of the California Climate Investments, which use proceeds from the state’s cap-and-trade auctions to reduce greenhouse gas emissions while providing a variety of additional benefits to California communities. The project also supports the Governor’s Executive Order (B-32-15) to ensure the state “transition to zero-emission technologies.”

Freight transport in California is a major economic engine for the state but also accounts for about half of toxic diesel particulate matter (PM 2.5), 45 percent of the emissions of nitrogen oxides (NOx) that form ozone and fine particulate matter in the atmosphere, and 6 percent of all GHG emissions in California.

The SCAQMD is the air pollution control agency for Orange County and major portions of Los Angeles, San Bernardino and Riverside counties.

ARB’s mission is to promote and protect public health, welfare, and ecological resources through effective reduction of air pollutants while recognizing and considering effects on the economy. The ARB oversees all air pollution control efforts in California to attain and maintain health based air quality standards.

BYD’s Pure Electric Buses

BYD has already carved out a major portion of the pure electric vehicle market. In 2015, the company shot to number one worldwide in EV car sales from only 7th in 2014.

It’s also dominating the pure electric bus market, and BYD’s pure electric buses and taxis are currently operating in over 200 cities in 48 countries worldwide, including the U.S., Mexico, Colombia, Brazil, the UK, Germany, Austria, Denmark, Holland, Belgium, Japan, Thailand, and China.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares, and today owns roughly 9.1% of the company.

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

© 2016 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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Charlie Munger Minority Stock Positions Stock Portfolio Warren Buffett

Berkshire Gives Mixed Signals on AmEx Stake

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Warren Buffett has long regarded Berkshire Hathaway’s stake in American Express like he views his stake in Coca Cola. It’s one of his “forever stocks.”

With American Express having struggled in recent years, including losing its co-branded relationship with Costco, the question is whether forever is really forever, or just a long time.

Costco’s jump to Visa is expected to take a big bite out of AmEx revenues, as it represented a whopping 8% of total billed credit card charges.

“I personally feel OK about American Express, and I’m happy to own it,” Buffett, said while taking questions at the meeting Berkshire Hathaway annual meeting. He did note AmEx’s problems, stating that it “has been under attack for decades — more intensively lately — and it will continue to be under attack. It’s too big a business, and too interesting a business.”

Buffett acknowledges that banking and finance draw a lot of attention and competitors, and there is always someone trying to knock you off your pedestal.

In that regard, Charlie Munger was less sanguine about AmEx.

“Anybody in payments who’s an established long-time player with an old method has more danger than used to exist,” he said.

Buffett is loath to sell Berkshire’s stake in AmEx and Coca Cola, because the cost basis is very low, and the profits from the sales would incur billions in taxes. The positions are both so large that they would also be hard to unload without affecting share prices.

Buffett also noted that Berkshire’s fund managers Ted Weschler and Todd Combs may not be as wedded to holdings in those companies as he has been when the day comes that they take over the entire $100+ billion portfolio. Each currently manages a $9 billion portfolio.

© 2016 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 Ups Its Foothold in Australia

(BRK.A), (BRK.B)

BYD Company Ltd., the Chinese battery-maker and vehicle manufacturer that is roughly 10-percent owned by Berkshire Hathaway, is increasing its electric vehicle foothold in Australia.

BYD has become the first Chinese electric vehicle manufacturer to be certified by the Australian Design Rules (ADRs), the country’s stringent technical standards for emissions, vehicle safety and theft resistance.

The company is already in the Australian market, with its pure electric buses in a shuttle service tested for Sidney Airport between December 2014 and May 2015.

It has also sold its pure electric forklift in Sydney and Melbourne.

BYD’s big vehicle news is the introduction of its e6 pure electric crossover for use as taxi.

According to BYD, with the ADRs certification, the BYD e6 taxi got the green light to access the Australian market, meaning that the company’s global electrified public transportation platform now extends to yet another major market.

7+4 Strategy

BYD’s comprehensive “7+4” electrification strategy in the Australia region aims at electrification of all forms of ground transportation: urban bus, coach, taxi, passenger car, urban logistics trucks, construction trucks, and urban sanitation trucks (7), as well as vehicles for warehousing, mining, airports and ports (4).

The company now gets one step closer to fulfilling its lofty electrification plans in a country that prizes sustainable development.

Currently, the BYD e6 and K9 global footprint is present in over 190 cities in 43 countries in all continents.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares, and today owns roughly 9.1% of the company.

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

© 2016 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 Commentary Minority Stock Positions Warren Buffett

Commentary: Will Berkshire Ever Seal the Deal on USG?

(BRK.A), (BRK.B)

If ever there was a company that looks like the perfect fit for Berkshire Hathaway it would have to be USG–the leading manufacturer of gypsum wallboard. After all, Berkshire already owns insulation manufacturer Johns Manville, Acme Brick, and presently has a 41.91% stake in USG.

USG and Berkshire

Berkshire played a key role in saving USG during the nadir of the Great Recession.

In 2008, with the housing market imploding and lending all but frozen, Berkshire came to USG’s rescue with $300 million of convertible notes that paid Berkshire 10-percent interest. At the time, the boost in confidence that USG received from Warren Buffett’s financing helped the company avoid bankruptcy. Boost investor confidence it certainly did, and the day of the transaction USG’s stock soared 22-percent to $6.89 a share.

Five years later, in December 2013, Berkshire exchanged $243.8 million of the convertible notes for common stock, and with additional purchases, its stake in USG now makes it the company’s single largest shareholder.

USG is a solid earner with a Price/Book of 2.16, a P/E of only 3.73, and EPS of $6.72. The stock currently pays no dividend and USG has stated they have no plans to do so. USG does carry a substantial amount of debt, which as of December 31, 2014, totaled $2.209 billion.

Wallboard Numbers Are Up

So, is now the time for Berkshire to fully bring USG into the Berkshire family of companies? Demand for gypsum wallboard is up. According to the Gypsum Association, a not-for-profit trade association, roughly 21.8 billion square feet of gypsum board were shipped in 2014. This was an increase of approximately 4% from 20.9 billion square feet in 2013. USG’s share of the gypsum board market in the U.S was approximately 26% in 2014, basically unchanged from 2013.

The Chinese Drywall Scandal

As an American manufacturer, USG has been a beneficiary of the Chinese drywall scandal that came to a head in 2009. Imported wallboard from China that had high sulfur content brought reports of fumes that created upper respiratory problems, and the market for wallboard from China was hit hard. Thousands of homes in Florida and other states needed to have their wallboard ripped out and replaced.

About USG

In 1902, 30 independent gypsum rock and plaster manufacturing companies merged to form the United States Gypsum Company. Over more than a century, USG has been issued 1,100 patents for its products. In addition to wallboard, the company is a leading manufacturer of acoustical panel and specialty ceiling systems. The company has 34 manufacturing plants in the U.S., and has roughly 9,000 employees in more than 30 countries.

USG’s a true market leader with a 26% market share of the U.S. gypsum wallboard market. It is followed by National Gypsum at 21%, and Georgia-Pacific at 16%. It has an even more commanding 50% share of the joint compounds market.

Time to Pull the Trigger?

The Chicago-based company has seen its ups and downs, including three bankruptcies. The last bankruptcy was in July 25, 2001 under Chapter 11 in order to deal with a mountain of asbestos litigation costs related to asbestos containing joint compounds. The establishment of the The United States Gypsum Asbestos Personal Injury Settlement Trust put the company’s asbestos woes in the rear-view mirror, and its stock price reflects it.

Also on the upside is the extensive cost cutting the company has done over the past decade. USG has closed high-cost manufacturing plants, and used salaried workforce reductions and other cost reductions to trim an additional $22 million to $28 million annually. In all, its cost reductions have totaled $500 million.

With a market cap of just over $3.66 billion ($1.46 billion of which is already owned by Berkshire), USG is a great fit for Berkshire if it wants to gobble up the whole thing. USG would fit nicely into the Marmon Group of companies, which include a host of companies that supply the construction industry.

So, will Berkshire pull the trigger? A two billion dollar deal is not a big one for Berkshire these days, and with new housing starts hitting a nine-year high, and slowly heading back towards the historical levels of 1.5 million starts a year, USG looks like a solid company worth adding to the Berkshire portfolio.

© 2016 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’s B-Box Takes on Tesla’s Powerwall

(BRK.A), (BRK.B)

Tesla gained a lot of attention in May of 2015 when it announced its Powerwall home battery, a rechargeable 7-10 kwh lithium-ion battery that could be used by solar panel owners to store power when the sun doesn’t shine. For some, it pointed the way towards living completing off the grid. Tesla is not the only company eyeing the home electric power storage market.

BYD Co. Ltd. – the world’s largest supplier of rechargeable batteries – and GoodWe Power Supply Technology Co. Ltd. have announced the full compatibility of BYD’s B-Box Modular Energy Storage System with GoodWe’s ES and BP Series Inverters to provide households with efficiency in home energy storage.

Unlike Tesla, which uses lithium-ion batteries, BYD’s B-Box uses BYD’s fire-safe, completely recyclable and long-cycle Iron-Phosphate battery, which it notes features high thermal stability.

According to BYD, the B-Box features a wide range of output power to meet heavy load applications, high discharge currency, free and flexible utilization for off-grid and on-grid usage, as well as worldwide applicability.

As a modular energy storage system, the BYD B-Box features additional usage freedom and flexibility with the key advantage of easy expansion. In the B-BOX 10.0, each module has a 2.5KWh storage capacity, and the box can house up to four modules, for a maximum of 10KWh capacity. The B-Box10.0 can also be laid out in parallel, reaching a maximum capacity of 80KWh. BYD has also launched the B-BOX 12.8, which can reach a maximum capacity of 409kwh when paralleled with multiple boxes.

The BYD B-BOX is already on sale in many European countries including Germany, UK, Italy, Spain, as well as in Australia and Africa.

As BYD moves forward, Tesla has scaled its highly-touted home power storage plans, dropping it previously announced but never marketed 10 kwh Powerwall. Tesla instead will market only the 7 kwh Daily Powerwall.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares, and today owns roughly 9.1% of the company.

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

© 2016 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

BYD Receives Big Pure-Electric Bus Order from AVTA

(BRK.A), (BRK.B)

The Antelope Valley Transit Authority (AVTA), which serves some 450,000 residents of the cities of Lancaster and Palmdale, California, and the unincorporated portions of northern Los Angeles County, has ordered up to 85 pure-electric buses from China’s BYD Company Limited.

The buses will be built at BYD’s manufacturing facility in Lancaster, California.

Berkshire Hathaway owns roughly 9.1% of the company, and Berkshire’s stake is worth roughly $12.3 billion.

“BYD Coach and Bus is proud to partner with AVTA on its groundbreaking decision to completely electrify its fleet,” said Stella Li, president of BYD Motors. “With more than 6,000 electric buses deployed world wide and 90 million miles of dependable service already accumulated, we know that our technology will help AVTA save money and improve local air quality. Pure-electric powered transportation is no longer in the future – it’s here now. I hope other transit agencies in California and across the country take note and follow the example AVTA has set today.”

AVTA notes that it is anticipating a cost savings as a result of electrifying its fleet. Over the lifetime of the new electric bus fleet, the transit agency forecasts it could save more than $46 million compared to an all diesel bus fleet, equivalent to $46,000 per bus per year in savings. And, by reducing dependence on foreign oil imports, AVTA will no longer be subject to oil price volatility for its bus fleet. This will help create greater stability for budget forecasting for the fleet manager – an important factor for a public agency.

The AVTA expects to take delivery of 29 electric buses within the next 12 months and is working to secure additional grant funding from the Air Resources Board to purchase another 17 buses.

“This is a historic day for AVTA which has been working diligently to secure grant funding to purchase these state-of-the- art zero-emission vehicles,” said Len Engel, executive director of AVTA. “We are proud to be the first transit system to adopt a goal of ‘100% Green in 2018’ and we look forward to leading the nation toward a new alternative in public transportation.”

Additional benefits AVTA will see as a result of electrifying its entire fleet include:

• Noise Pollution Reduction: noise pollution will be reduced by 50 percent, making it a more pleasant ride for bus operators and transit passengers.

• Emissions Reductions: AVTA’s all-electric fleet will provide elimination of CO2, NOx, PM10 and PM2.5, thereby improving air quality and positively impacting human health.

• Safer Work Environment for Technicians: The electric batteries are safe, thermal runaway proof, non-toxic, and maintenance free. There are no diesel or diesel emission fluids needed for bus maintenance, providing a safer and healthier working environment for vehicle technicians.

BYD’s Pure-Electric Buses Around the Globe

BYD’s electric buses have been hot sellers not only in China, but around the world, with orders from the U.S, Brazil, Columbia, England, Malaysia and Thailand.

In September 2015, BYD scored a massive order in the U. S. from the state of Washington. BYD won a contract from the Washington State Department of Transportation (WSDOT) for up to 800 pure electric buses.

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

© 2016 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.