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Warren Buffett Prevails in Battle with Carl Icahn

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Famed activist investor Carl Icahn has come up short in his battle with Warren Buffett over Occidental Petroleum’s acquisition of Anadarko Petroleum.

The deal closed on August 8, which puts in place Berkshire Hathaway’s funding deal of the takeover.

At the end of April, Buffett announced that Berkshire would invest $10 billion in Occidental in exchange for preferred stock and warrants to purchase common stock. The investment enabled Occidental to top Chevron’s bid for Anadarko.

The deal infuriated Icahn, who castigated Occidental’s CEO and President Vicki Hollub, and railed that “The whole thing is a travesty.”

In exchange for $10 billion, Berkshire Hathaway received 100,000 shares of cumulative perpetual preferred stock with a liquidation value of $100,000 per share and 8% annual dividend. Berkshire can redeem the shares for cash at the option of Occidental in at least 10 years for 105% of the liquidation price, in addition to all dividends.

Berkshire also received warrants to purchase up to 80 million shares of common stock with an exercise price of $62.50 per share, with an expiration date of up to one year after Berkshire redeems its preferred stock.

In a letter to Occidental shareholders written after the announcement, Icahn expressed his displeasure, stating that “Buffett figuratively took her to the cleaners,” and that it was “like taking candy from a baby.”

That may be, but Berkshire will now be receiving 8% for as long as it holds its preferred stock, which looks mighty good in these days of falling interest rates. Berkshire will be receiving $800 million a year, and may make millions more if oil prices rise and make its warrants valuable.

© 2019 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 Tops 100 Double-Decker E-Buses for London

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New energy company BYD in partnership with Alexander Dennis Limited (ADL ) has sold its 100th pure electric double-decker bus for service in London.

On July 27, 2015, BYD announced a joint project worth $29.6 million deal with British bus manufacturer Alexander Dennis Limited to build 51 single-deck zero-emission buses for London.
The buses utilize BYD’s chassis and electric drivetrain with the bodies supplied by ADL.

The partnership helps London move towards its goal of having all single-deck buses totally emission-free by 2020.

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.

© 2018 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 & Toyota to Jointly Develop Vehicles

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Chinese battery and vehicle maker BYD has signed an agreement with Toyota Motor Corporation for the joint development of battery electric vehicles (BEVs). The two parties will jointly develop sedans and low-floor SUVs as well as the onboard batteries for these vehicles and others with the aim to launch them in the Chinese market under the Toyota brand in the first half of the 2020s.

BYD was founded in 1995 as a battery business and has grown into a total energy solution company, manufacturing not only electrified vehicles but other products such as large-size energy storage cells. The company name BYD stands for “Build Your Dreams” and core parts for electrified vehicles such as batteries, motors and power electronics are among the products that BYD develops in-house. In 2008, BYD became the first company in the world to sell mass production of plug-in hybrid electrified vehicles (PHEVs). Since 2015 onwards, BYD’s sales of BEVs and PHEVs have been ranked first in the world for four consecutive years.

In 1997, Toyota became the first company in the world to launch mass production hybrid electrified vehicles (HEVs). Since then, it has become a pioneer of electrified vehicle development, and accumulated a rich array of technologies and experience in the development, production, and sales of electrified vehicles.

To curb global warming, both BYD and Toyota seek to reduce CO2 emissions by promoting the widespread use of BEVs. To accomplish these goals, both companies believe there is a need to put aside their rivalry and collaborate; therefore, the two companies have agreed to jointly develop BEVs.

Going forward, BYD and Toyota will make use of the electrified vehicles, and battery development technologies they have acquired through their market introductions and will work together to further develop BEVs that are attractive to customers and in further promoting their widespread adoption.

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.

© 2019 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 Opens New Global Design Center in Shenzhen

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Chinese battery and vehicle maker BYD has opened a new global design center at the company’s headquarters in Shenzhen.

Some 300 designers will be working in the 136,000 square-foot design center.

The team is led by an elite trio of European designers that have left their marks on top brands:

Global Design Director Wolfgang Egger. Egger previously served as Chief Designer for Audi. Egger has over 30 years of experience in automotive design. During his time at Audi, he created new designs for iconic models such as the A8, Q7 and TT and oversaw the Lamborghini sub-brand. Before joining Audi, he worked at Alfa Romeo where he led the team in developing stunning designs that received worldwide acclaim.

Global Exterior Design Director JuanMa Lopez came to BYD after eight years as head of exterior design at Ferrari, where he supervised the design of the F12 Berlinetta, LaFerrari, 812 Superfast, 488 Coupe and Spider, and many others. He began his career as an industrial designer and is known for his extraordinary skills in prototyping.

And, Michele Jauch-Paganetti, who has been named Global Interior Design Director, came to BYD after serving as Head of Advanced Interior Design at Daimler AG. During his 18 years at Daimler, he led teams creating Mercedes Benz interiors ranging from the everyday luxury of the C Class to the avant-garde vision of the Maybach 6. Before joining Daimler, he spent 8 years at Volkswagen.

BYD already has design centers in Shanghai and Los Angeles, and has various designers based in Italy, Spain, Switzerland and Germany.

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.

© 2019 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 Opens Bus Assembly Plant in Canada

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Chinese battery and vehicle maker BYD has expanded its North American operations with the opening of its first bus assembly plant in Canada.

With buses already on order or in operation in Toronto, Victoria, Longueil, St. Albert and Grand Prairie, BYD will inaugurate the new 45,000-square-foot facility by assembling buses for the Toronto Transit Commission, Canada’s largest transit operator.

“We’re proud to establish a home in Canada; it re-affirms our commitment as a company to be rooted in this country and in this province,” said Ted Dowling, Vice President, BYD Canada.

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.

© 2019 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

Santiago, Chile to Add 183 More BYD Electric Buses By August

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Chinese battery and vehicle maker BYD has sold an additional 183 electric buses to Santiago, Chile.

The Chilean Minister of Transportation and Telecommunications, Gloria Hutt, recently announced the new order, which is due to arrive in August.

The 183 BYD electric buses will join an existing fleet of 100 BYD electric buses that started service in December 2018. The buses are operated by Metbus.

With the new delivery, Santiago will become the largest operator of electric buses outside of China, with some 411 buses in service.

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.

© 2019 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

Panama Has Big Plans for BYD’s e-Taxis

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Chinese battery and vehicle maker BYD has taken the first steps on what will be a major fleet of e-taxis in Colón, Panama.

BYD has delivered the first seven e-taxis for a planned fleet of 1,500 e-taxis in Colón, with 90 more to be on the road by the end of 2019.

The seven BYD e6 sedans provide service to tourists and locals visiting the Atlantic entrance to the Panama Canal.

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

© 2019 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 is the Latest Way to Get to Disneyland

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Chinese battery and vehicle maker BYD will soon be giving you a lift to Disneyland.

Anaheim Resort Transportation (ART) has announced that it would add 40 of BYD’s all-electric buses to its fleet serving the renowned tourist destination.

In 2013, BYD opened its U.S. electric bus manufacturing plant in nearby Lancaster, California, and in April 2019 delivered its 300th bus for the U.S. market.

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

© 2019 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

China’s BYD One of Toyota’s New Strategic Partners

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Chinese new energy company BYD will be one of Toyota’s strategic partners that also includes partnerships with Chinese battery manufacturer CATL, Toshiba, and Japanese battery manufacturer GS Yuasa.

Details of the strategic partnerships have yet to be released, but comes as Toyota is looking to increase its supply of batteries in order to produce 5.5 million electrified vehicles a year by 2025.

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.

© 2018 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

Categories
Minority Stock Positions Stock Portfolio

BYD Constructing Gigafactory in Guangzhou

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Chinese battery and vehicle maker BYD is expanding its battery manufacturing capacity for a wide variety of applications.

The gigafactory, which will be located in the southern Chinese city of Guangzhou, will engage in the research and development, production and manufacturing of lithium polymer batteries for electric devices such as mobile phones, laptops and computers.

BYD estimates making a total investment of 4 billion yuan ($57.9 million U.S), and will realize an annual output of 13 billion yuan when it begins operation in 2020.

BYD also began construction of a gigafactory for vehicles in southwest China’s Chongqing in February.

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

© 2019 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.