Berkshire News Briefs - 5/30/13

Berkshire Hathaway’s MidAmerican expands Western footprint with $5.6 billion buy of NV Energy (Washington Post)

Berkshire Hathaway’s MidAmerican Energy utility said Wednesday that it will buy Nevada electric and natural gas company NV Energy Inc. for $5.6 billion as it expands its footprint in the energy sector. MidAmerican has been aggressively investing in renewable energy projects in recent years, and the companies expect that MidAmerican’s experience will help NV Energy develop renewable projects in Nevada, which has vast solar, wind and geothermal resources.

Warren Buffett’s Berkshire Hathaway buys The Roanoke (Va.) Times for undisclosed price (Washington Post)

Warren Buffett’s Berkshire Hathaway is adding The Roanoke (Va.) Times to its growing group of small and medium-sized newspapers. Berkshire said Thursday it will acquire The Times from Landmark Media Enterprises on Friday. It will be Berkshire’s 30th daily newspaper. Financial terms were not disclosed. Berkshire says The Roanoke Times has daily circulation of 76,000 and Sunday circulation of 90,000.

Newest director doesn't own Berkshire Hathaway shares (Omaha World Herald)

Meryl Witmer, an investment fund manager for Eagle Capital Partners in New York City, is the newest member of Berkshire's board of directors and, so far, the only one of its 13 members who doesn't own Berkshire shares. Shareholders elected Witmer on May 4 to the board of the Omaha-based conglomerate headed by Chairman and CEO Warren Buffett. She disclosed her non-ownership status in a filing this week with the U.S. Securities and Exchange Commission. The other 12 directors own Berkshire shares ranging from Buffett's $59 billion and Microsoft co-founder Bill Gates' $10.2 billion to the $350,000 worth of stock owned by Susan Decker, former president of Yahoo, who joined the board in 2007.

H.J. Heinz Company Announces Receipt of Chinese Regulatory Approval Required for the Acquisition of Heinz by Berkshire Hathaway and 3G Capital (MarketWatch)

H.J. Heinz Company today announced that it has received regulatory approval from the Chinese Ministry of Commerce for the acquisition of Heinz by an investment consortium comprised of Berkshire Hathaway and an investment fund affiliated with 3G Capital. The transaction remains subject to certain customary closing conditions, including receipt of certain remaining regulatory approvals, and is now expected to close in early- to mid-June. Heinz has received antitrust clearance in the United States, Brazil, India, South Korea, Japan, Israel, Mexico, South Africa and Ukraine, and other regulatory approvals in Russia, New Zealand and Ireland. The Company is waiting for antitrust clearance in the European Union and Russia.

Will 3G Capital make massive changes at Heinz? (Pittsburgh Post-Gazette)

Knowledge that the new owners -- a partnership between 3G Capital and Berkshire Hathaway -- will put every expense and every product under a microscope has the 1,200 Heinz employees in the Pittsburgh region polishing their resumes, networking with professional contacts and keeping their options open. "If this was only Berkshire Hathaway, I would say Heinz is going to be Heinz," said University of Pittsburgh business school professor Jay Sukits. "The wild card here, to me, is 3G." Berkshire Hathaway chairman Warren Buffett is known for buying and holding well-run companies such as Heinz. But 3G Capital could have a shorter-term view. The New York private equity firm has earned a reputation for aggressively and quickly cutting costs at companies it acquires [...]

Buffett's Berkshire Thinks This Bankruptcy Deal Stinks (Fool)

Residential Capital is moving rapidly toward exiting bankruptcy -- and Warren Buffett is not pleased. [...] This stake in ResCap's debt makes Buffett a major player in ResCap's bankruptcy proceedings. It gives Buffett a voice in agreeing to (or refusing) settlement negotiations to resolve creditor claims against ResCap, and it could result in an equity stake in the company if it exits bankruptcy -- and that's where things get complicated. [...] Buffett and Berkshire are right to push for full transparency in these bankruptcy proceedings, so that all interested players know what they're being asked to give up -- not just what Ally is offering to give them.

What Brooks Has Learned Working With Buffett (Fool Video)

Berkshire Hathaway subsidiary Brooks Sports is drawing quite a bit of attention from Buffett devotees these days. The running shoe maker has sprinted to 34% volume growth in both 2011 and 2012, with U.S. sales growth hitting the tape at 43% by the end of last year. Our roving reporter Rex Moore caught up with Brooks CEO Jim Weber at the recent Berkshire shareholder meeting in Omaha. In this segment of a multipart series, Jim says working under the Berkshire umbrella has taught him a lot about the power of the brand.

Berkshire Hathaway unit buys another Louisville realty firm (Louisville Business First)

HomeServices of Kentucky Inc., which owns Louisville-based Semonin Realtors, has agreed to purchase Louisville real estate firm Wakefield Reutlinger Realtors. The purchase is expected to become effective June 1. HomeServices of Kentucky is a wholly owned subsidiary of HomeServices of America Inc., a Berkshire Hathaway affiliate.

Berkshire’s Weschler Holds Almost $150 Million of DaVita (Bloomberg)

Warren Buffett’s Berkshire Hathaway Inc., the largest shareholder in DaVita (DVA) HealthCare Partners Inc., said deputy stock picker Ted Weschler has a personal holding in the dialysis provider valued at almost $150 million. Weschler has 1.19 million shares, or about 1.1 percent, of the Denver-based company, according to a regulatory filing yesterday. The holding was amassed before he joined Omaha, Nebraska-based Berkshire, according to the document. [...] Berkshire has a stake of 14 percent. The filing yesterday outlines an agreement by Weschler, 52, and Berkshire about the separation of their holdings.

Berkshire Hathaway Acquires 5% Stake In Starz (ValueWalk)

Warren Buffett’s Berkshire Hathaway Inc. recently submitted a 13G filing with the Securities and Exchange Commission (SEC), which showed that the conglomerate acquired 5.03 percent stake or 5,622,340 shares of Starz. Formerly known as Liberty Media Corp, Starz is a global media and entertainment company. Its offers premium subscription video programming services through its flagship pay TV networks, Starz and Encore to various channels video distributors such as cable operators, satellite television providers, and telecommunications companies. Starz and Encore have 21.6 and 35.1 subscribers respectively as of March 31, 2013. [...] The regulatory filing of Berkshire Hathaway Inc. revealed that its investment manager, Ted Weschler owns 285,834 shares of Starz.

Berkshire Sues NeighborCity.com in IP Dispute (Technorati)

Berkshire Hathaway has filed a lawsuit against NeighborCity.com, a real estate listing portal, despite the fact that the Warren Buffet’s company is a licensee of the latter. Berkshire is accusing the San Francisco-based company of copyright infringement when it allegedly reproduced, displayed, and distributed protected content such as photographs without any authorization from Berkshire’s listing services. The disagreement between the two companies shows how intellectual property (IP) rights can be used as a competitive tool in ecommerce and Internet-based lead generation and transactions.

Warren Buffett Lunch Auction To Kick Off June 2 (HuffPost)

Warren Buffett has already helped raise nearly $15 million over the years for a San Francisco homeless charity, and the group hopes someone will again be willing to pay more than $2 million for a private lunch with the Omaha, Neb., investor. [...] Bidding for the lunch on eBay will begin at $25,000 on the evening of June 2 and continue through June 7.

Berkshire News Briefs - 5/22/13

Berkshire filed its quarterly 13F statement with the SEC this week, which discloses which other public companies it owns shares in.

In summary:

New additions: Starz (STRZA) and Chicago Bridge & Iron Company (CBI). (Starz is not really a purchase; BRK received the shares when Starz was spun off from DirecTV in January.)

Big purchases (percentage-wise): 41% increase in National Oilwell Varco (NOV) and 121% increase in Verisign (VRSN)

Also big purchases (volume-wise): Wells Fargo (WFC), Walmart (WMT), DirecTV (DTV), and DaVita (DVA)

Smaller purchases: IBM (IBM), US Bankcorp (USB), and Wabco (WBC).

Large sales: 46% of BRK's Mondelez (MDLZ) shares, a 100% sale of Archer Daniels Midland (ADM), and a 100% sale of General Dynamics (GD).

Smaller sales: Kraft (KRFT) and Bank of New York (BK).

With His Magic Touch, Buffett May Be Irreplaceable for Berkshire (NY Times)

The ability to make acquisitions on favorable terms is a testament to Mr. Buffett’s personality and skills as a deal maker. It also highlights an almost unsolvable problem for his company, Berkshire Hathaway, and its shareholders. When its 82-year-old chief executive is gone, who will negotiate such sweet deals? [...] The Heinz deal aptly illustrates the huge issue looming for Berkshire shareholders. Simply put, Mr. Buffett negotiated a deal almost no one else on the planet could have received.

S&P downgrades Berkshire Hathaway's credit rating (Bloomberg)

Warren Buffett's Berkshire Hathaway Inc. was downgraded by Standard & Poor's Ratings Services Thursday after the credit rating agency changed the way it evaluates insurance companies. [...] S&P said Berkshire's insurance companies, which include Geico and major reinsurance firms like General Re, are riskier than other insurers because their large equity investments that can be volatile. And the ratings agency said insurance regulators could restrict how much money Berkshire's insurers send to the holding company. The ratings agency also said management succession is a concern at Berkshire. [...] S&P said its rating reflects Berkshire's strong financial risk profile and strong balance sheet, and Berkshire still enjoys the highest rating of any insurance company.

The Fool's John Reeves (TMFBane) says that this is The Berkshire Hathaway Story Nobody Cares About (Fool Video)

Buffett Jets Chief Says U.S. Leads Private-Flight Rebound (Bloomberg)

NetJets caters to wealthy individuals and business clients who take a stake in planes in exchange for flight hours. When the U.S. financial crisis sapped luxury flying, the company cut jobs and planes before embarking on $17.6 billion of orders starting in 2010 on a bet that the market would recover over the coming decade. The number of new NetJets owners increased 55 percent in the first quarter from a year earlier, Hansell said. Regarding the U.S. market, he said: “I wouldn’t say it’s a huge upswing, but it’s year over year over year, from 2009, been an improvement.”

Warren Buffet Pumps $1.9 Billion Into Iowa Wind Power (Clean Technica)

The new investment will add up to 656 new turbine’s to the wind portfolio of MidAmerican Energy, which has already pumped 1,267 turbines into Iowa since 2004 (Buffet’s affection for wind power is active in other states as well, by the way). When the new turbines are operating the company expects to produce 39 percent of its retail generation from wind power. In comparison, by the end of 2011 the company’s energy mix was dominated by coal at 47 percent, with wind coming on strong at 26 percent. Another 20 percent came from natural gas and oil, with nuclear, hydro and “other” combining for the remaining 7 percent.

1 Thing I Wish Warren Buffett Had Said (Fool)

During the multi-hour question-and-answer session during the Berkshire Hathaway annual meeting, there was plenty that Warren Buffett and his partner-in-crime Charlie Munger said. But what didn't Buffett say? To find out, I rounded up the group of Fools who attended the Berkshire meeting this year and asked them exactly that. So, Fools, what do you wish Warren had said?

Contest turns kids, teachers into Berkshire Hathaway shareholders (Omaha World-Herald)

“The kids were terrific,” Buffett said Monday after getting sales pitches from five individual and three team finalists in a nationwide contest related to the Secret Millionaires Club, an animated series that teaches children about finances. “They're all winners.” Buffett, who voices his cartoon character in the series, didn’t pick the winners, announced Monday at a luncheon at the Embassy Suites hotel in Omaha’s Old Market. But he backed up his praise by pledging to give 10 shares of Class B stock in Berkshire to each student and the teachers who coached them. That’s about $25,000 worth, altogether, at today’s price. The winning individual and team also received $5,000 from the contest.

Warren Buffett plays salesman-in-chief for Berkshire Hathaway while selling Dairy Queen treats (Washington Post)

Billionaire Warren Buffett isn’t just Berkshire Hathaway’s chairman and CEO. He’s also the chief salesman. Buffett visited a Dairy Queen in Ralston, Neb., Monday evening to serve up the restaurant chain’s new S’mores Blizzard flavor that will be available nationwide June 1. Then he ate ice cream for the cameras.

Berkshire Subsidiary News - 5/14/13

Berkshire Hathaway Intrinsic Value Pie Chart (Seeking Alpha)

I linked to this Seeking Alpha article for the terrific pie chart showing where Berkshire Hathaway gets its value from. It nicely shows the relative size of the different parts of the company. The Fool also had a different graphic last week...

Understanding Berkshire Hathaway Stock (Fool)

Berkshire Hathaway is a large, highly diversified conglomerate. So if you want to own Berkshire Hathaway stock, it's crucial that you understand exactly how the company makes money. [...] The composition of Berkshire's earnings is definitely not an exact representation of the composition of the stock's value. But it's a great start for any investor beginning due diligence on Berkshire Hathaway stock.

Berkshire CEOs Spend Quietly, Match Buffett on Heinz Deal (Bloomberg Businessweek)

Warren Buffett stole headlines when he committed $12.1 billion in a deal to take ketchup maker HJ Heinz Co. private this year. Managers at his Berkshire Hathaway Inc. spent as much in 2012 while attracting less attention. Executives who gathered last week for Berkshire’s annual meeting in Omaha, Nebraska, said in interviews that they plan to spend even more this year as they upgrade a rail network and energy utilities, expand manufacturing capacity and hunt for additional acquisitions.

Brewer shoe manufacturer acquired by Berkshire Hathaway company (Bangor Daily News)

Justin Brands Inc. announced on Thursday the acquisition of Brewer-based Highland Shoe Co. LLC. Financial details of the acquisition were not disclosed, but all 35 employees will be retained at the Brewer company [...] Justin Brands said in its release that the Brewer plant will continue its current production level of more than 400 pairs of hand-sewn shoes each week. [...] Highland annually makes around 25,000 shoes by hand for private labels such as Yuketen, Red Wing, Oak Street Bootmakers and Sperry Top-Sider Shoes and “50-60 percent of our shoes get shipped overseas somewhere,” Sutton said last year. It produces casual and dress shoes for men and women.

The last time Berkshire Hathaway bought a Maine shoe business... (Bangor Daily News)

The last time Berkshire Hathaway bought a Maine shoe business was in 1993 — and the business was Dexter Shoe. [...] Beginning in 1998, Dexter began shedding jobs, a bit at a time, citing global competition. Then, beginning in 1999, the company began to shutter its manufacturing facilities: first Milo, then Newport, followed by Skowhegan. A week after the terrorist attacks on 9/11 Dexter Shoe announced it was closing its final manufacturing facility in Maine, the one located in its namesake town of Dexter. Buffett came to regret his purchase of Dexter Shoe, calling it in 2008 “the worst deal that I’ve made.”

No decision yet on MidAmerican Energy nuclear facility (Cedar Rapids Gazette)

“I am getting overwhelming feedback that people aren’t interested in a nuclear plant in Muscatine County,” said Jeff Sorensen, who chairs the Muscatine County Board of Supervisors. “But I don’t know what our role in the process is except to say we don’t want it.” That role? It’s pretty limited, actually. Though the board can speak on behalf of the public, it has no legal authority to approve or prevent a nuclear power plant in Muscatine County. That authority lies with the Nuclear Regulatory Commission, a federal agency.

Berkshire Agrees to Limit DaVita Stake After Weighing Increase (Bloomberg Businessweek)

Warren Buffett’s Berkshire Hathaway Inc., the largest investor in DaVita HealthCare Partners Inc., agreed not to acquire more than 25 percent of the dialysis provider after raising the possibility of increasing its stake. [...] Berkshire held almost 15 million DaVita shares, a stake of about 14 percent, according to data compiled by Bloomberg based on a March filing. Standstill agreements are typically arranged by companies seeking to prevent an unsolicited takeover.

Berkshire Hathaway sells off more Moody's shares, stake down to 11.1% (Economic Times)

Warren Buffett's Berkshire Hathaway Inc sold off another 1.375 million of its Moody's Corp shares in the past three trading days, leaving it with an 11.1 per cent stake in the parent of credit rating agency Moody's Investors Service. Berkshire sold the shares in several transactions on Thursday, Friday and Monday, yielding a total of $84.5 million and leaving it with about 25.3 million shares, according to a regulatory filing on Monday.

Buffett's CEOs: The Women of Berkshire Hathaway (YouTube / Bloomberg Video)

Bloomberg's Betty Liu introduces us to the female CEOs at Berkshire Hathaway companies. They discuss the bond they share, the common obstacles they face and their thoughts on word that the successor to Warren Buffett will be a man... for now. They speak on Bloomberg Television's "In The Loop."

Berkshire News Briefs - 5/13/13

Berkshire Hathaway profits up more than 50% (Financial Times)

Berkshire Hathaway said first-quarter profits had jumped more than 50 per cent from the year-ago period because of insurance gains and overall growth from the $268bn conglomerate’s diverse mix of business. [...] The largest contributor to the rise was insurance underwriting profits of $901m, compared with $54m last year. The rise included a one-off gain of $255m related to amendments to a contract with a unit of Swiss Re. Overall revenues of $43.9bn rose from $38.1bn a year ago.

Berkshire Hathaway's 1st Quarter Press Release and 10Q filing.

The Berkshire Hathaway Q&A (Omaha World-Herald)

During more than five hours of fielding questions from shareholders, journalists and financial experts, Berkshire Hathaway Chairman and CEO Warren Buffett and Vice Chairman Charlie Munger were asked why they do what they do, what changes they would consider and what the secrets of their success are.

For more detailed notes on the Q&A session, here's an account of it from the Motley Fool BRK-A board.

Warren Buffett's Candy: His Sweet Tooth for See's Candies, Dairy Queen (YouTube / Bloomberg Video)

Bloomberg's Betty Liu profiles the sweet side of Warren Buffett's empire with See's Candies and Dairy Queen as both companies look to expand while keep commodity costs under control. She speaks on Bloomberg Television's "In The Loop."

Berkshire Hathaway Shareholder Meeting Picketed By Utah Coal Miners (Huffington Post)

Dozens of Utah coal miners are picketing outside the Berkshire Hathaway's annual meeting in downtown Omaha. The protesters are members of United Mine Workers of America who work at Deer Creek mine near Huntington, Utah. The mine is run by a subsidiary of Berkshire's MidAmerican Energy Holdings Co. The union's contract expired in January, and the union and company are disagreeing on health care coverage and safety checks.

Berkshire's B-Share Generation (The Street)

Nick Antoine traveled to Berkshire Hathaway's annual shareholder meeting with air miles and lodged in a "dirt cheap" hotel room with a ceiling that leaked water from an overflowing toilet a floor above. The 24 year-old Princeton University graduate was forced to splurge on taxis due to unseasonably cold weather at the May 4 investor gathering in Omaha, Nebraska. [...] Twenty-somethings like Antoine describe the pilgrimage to Omaha as an affirmation of independent thinking in business and investment. Buffett's values and Munger's lucidity also carry an appeal beyond their stewardship of Berkshire and its more than 80 operating subsidiaries. Those youthful shareholders are building in number, according to longtime attendees of Berkshire's meeting. The company has dramatically expanded its investor base since splitting Class B shares, first issued in 1996, by 50-to-1 in 2010.

The Cult of Buffett (Fool Video)

The Berkshire Hathaway annual meeting has reached a cult-like status. People flock from around the world to hear words of wisdom from the Oracle of Omaha. But what did Warren Buffett actually reveal about the inner workings of Berkshire?

Here's How Warren Buffett Disappointed Me (Fool)

The Berkshire Hathaway annual meeting is attended by throngs of Berkshire faithful. For some shareholders at the meeting, it's probably impossible for Berkshire CEO Warren Buffett to ever be wrong in their eyes. If we're being realistic, though, Buffett does indeed have his slip-ups. As partner-in-crime Charlie Munger put it: "Just because Warren thought something years ago doesn't make it a law of nature." With that in mind, I rounded up the team of Fools who attended this year's Berkshire meeting to ask in what ways Buffett disappointed them during the meeting.

25 Surprising Facts About Berkshire Hathaway (Fool)

Berkshire's roots go back more than 174 years to the founding of textile manufacturer Valley Falls Company, which itself merged with Berkshire Cotton Manufacturing Company in 1929. The resulting company merged with Hathaway Manufacturing to create Berkshire Hathaway in 1955.

In 2010, Warren Buffett said he considered Berkshire the "dumbest" stock he ever bought. Why? Because in 1962 he acquired his controlling stake in anger when one of its managers short-changed him in a tender offer to the tune of $0.125 per share. After he fired the manager, Buffett realized he had committed too much of his money to a "terrible" textiles business, which he fought to save for 20 years before giving up. By Buffett's estimation, that mistake cost him more $200 billion in compounded returns.

Berkshire Sells Debt to Buyers Buffett Pities (Bloomberg)

Berkshire Hathaway Inc.’s $1 billion note sale shows that while Chief Executive Officer Warren Buffett may pity investors who’ve stuck with bonds as yields fall to record lows, he’ll sell them as much debt as they want.

The company’s Berkshire Hathaway Finance Corp. sold five-and 30-year securities offering the company’s lowest coupons for those maturities ever.

New book teaches children ABCs of Warren Buffett's Berkshire Hathaway (NDTV)

Two Omaha residents, author Nancy Rips and illustrator Tom Kerr, have teamed up on "My First Berkshire ABC" to teach children about one of the world's best-known companies, and a little about the local billionaire behind it. [...] Most pages show companies that Berkshire owns or invests in. G, for example, is for "Geico," and features the car insurer's talking gecko. And W is for "Wells Fargo", and features the bank's familiar stagecoach.

Berkshire Investment News - 5/2/13

Investors earn handsome paychecks by handling Buffett's business (Omaha World Herald)

Todd Combs, 42, and Ted Weschler, 51, are expected to receive bonuses exceeding $50 million each based on their investment results in 2012, evidence that they and Buffett made the right choices when they connected. Combs and Weschler discussed how they came to work for Buffett in interviews for a new World-Herald book, “The Oracle & Omaha: How Warren Buffett and His Hometown Shaped Each Other.”

Berkshire's Weschler, Combs pay tribute to 'terrific town' (Omaha World Herald)

Todd Combs could do his job from almost anywhere. Hired in 2010 as an investment manager to back up Warren Buffett at Berkshire Hathaway Inc., Combs brought his wife, April, to Omaha to see whether they should move from Connecticut. They made the move. [...] Ted Weschler is a commuter to Omaha, not a full-time resident, for his job as a money manager for Warren Buffett at Berkshire Hathaway Inc. “Omaha is a terrific town,” Weschler said. [...] But Weschler still has his office above a bookstore in Charlottesville, Va. He and his wife, Sheila, and daughters live on a 104-acre farm where they moved into the home of their dreams in 2011. And he also works in Omaha several days most weeks [...]

Warren Buffett checks in on his Coke investment (USA Today)

Warren Buffett, Berkshire Hathaway's CEO and largest shareholder, made a surprise appearance at Coca-Cola's annual meeting on April 24, 2013. The billionaire investor gave an on-stage interview with Muhtar Kent, chief executive officer of Coca-Cola (KO). Buffett advised Kent to stay ahead of the competition by studying the history of what made other companies fail. "I like to study failure. We want to see what has caused businesses to go bad, and the biggest thing that kills them is complacency," Buffett said at the Atlanta-based meeting.

Warren Buffett-Backed Chinese Automaker BYD Says Profit Quadrupled In 1st Qtr (Forbes)

BYD, a Chinese manufacturer of autos, batteries and phone components 10% owned by Warren Buffett’s Berkshire Hathaway, said yesterday evening net profit quadrupled to 112.4 million yuan, or $18.1 million, in the first three months of the year as sales recovered from a decline last year.

BYD to Produce Electric Buses in California in U.S. Push (Bloomberg)

BYD Co., the Chinese automaker partially owned by Warren Buffett’s Berkshire Hathaway Inc., is preparing to make electric buses in California as the company seeks to bolster its visibility in the U.S. The company will open facilities in Lancaster, California, on May 1 that will assemble electric buses, Marketing Director Sherry Li said. BYD’s K9, which is 12 meters (39 feet) long, can run 155 miles (249 kilometers) when fully charged, which can take as little as three hours, according to the company.

Lee Enterprises refinances Pulitzer Notes with Berkshire Hathaway (WSJ)

Lee Enterprises, Incorporated, a major provider of local news, information and advertising in 50 markets, has reached agreement with Berkshire Hathaway Inc. to refinance $94 million of long-term debt known as the Pulitzer Notes. [...] "We very much welcome Berkshire Hathaway's continued investment in Lee, which is now represented in all elements of our capital structure," said Mary Junck, Lee chairman and chief executive officer. "We and Berkshire share a strong belief in the enduring value of our business and the opportunities for growth in local markets such as ours. This financing will reduce our interest costs and allow the company to repay debt at an even faster pace." Warren E. Buffett, chairman and chief executive officer of Berkshire Hathaway, said: "Lee fits our definition of locally focused newspapers serving indispensable information in markets with a deep sense of community. We view a larger stake in Lee as a good investment for Berkshire Hathaway shareholders."

Buffett's first tweet: 'Warren is in the house' (The Telegraph)

America's most famous investor had amassed 60,000 followers less than an hour after opening his account on Thursday afternoon. He passed 100,000 followers within two hours.[...]

Although it remains to be seen how often Mr Buffett will tweet, his pithy wisecracks and homespun investment advice could prove well suited to the 140 character messages that Twitter allows.

Follow @WarrenBuffett on Twitter.

Berkshire Subsidiary News - 5/1/13

Buffett's Berkshire Buys Rest of Iscar for $2.05B (Fox Business News)

Warren Buffett's Berkshire Hathaway Inc. agreed to pay $2.05 billion to purchase the remaining piece of an Israeli metalworking company that it had acquired a stake in seven years ago. Berkshire is buying the remaining 20% stake in IMC International Metalworking Companies, called Iscar, from the Wertheimer family, the founders of the firm. They had sold the first 80% to Berkshire for $4 billion in 2006, meaning the company doubled in value since the initial transaction.

Heinz shareholders approve acquisition by 3G, Berkshire (Washington Post)

Heinz is one step closer to going private. The Pittsburgh-based ketchup maker said Tuesday that shareholders overwhelmingly approved its acquisition by Warren Buffett’s Berkshire Hathaway and 3G Capital, the investment firm that also owns Burger King.

Heinz Wins Ruling Tossing Investor Suits Over Berkshire Buyout (Bloomberg Businessweek)

HJ Heinz Co. won a judge’s ruling throwing out lawsuits brought by investors seeking to block the $23 billion buyout of the company by Warren Buffett’s Berkshire Hathaway Inc. and Jorge Paulo Lemann’s 3G Capital. The decision by Pennsylvania state court judge Christine Ward clears the way for a shareholder vote today on the purchase. Nine shareholder lawsuits had been filed before Ward challenging the proposed merger. Three complaints filed in federal court were voluntarily dismissed earlier this month.

New Heinz owners to focus on cutting $14B in debt (Tribune Live)

The $28 billion acquisition of H.J. Heinz Co. is expected to lead to further international growth of the iconic Pittsburgh food company in the long term. But in the short term, a near tripling of the condiment-maker's debt by the buyers, Warren Buffett's Berkshire Hathaway and Brazilian investment firm 3G Capital, could result in aggressive cost-cutting, analysts said.

AP Twitter hack is lesson on risk of social media, Berkshire’s Tamraz says (Washington Post)

The hacking attack that caused the Associated Press to send an erroneous Twitter post shows the risk of social media, said Cathy Baron Tamraz, chief executive officer of Berkshire Hathaway Inc.’s Business Wire. The false information about explosions at the White House, which sent markets down 1 percent in a matter of seconds, is an “object lesson” in why social media aren’t a substitute for press releases, Tamraz said today in a phone interview.

Buffett Trucking Unit Joins Wirtz in Missouri Wine Wager (Bloomberg)

Berkshire Hathaway Inc.’s McLane trucking unit, a supplier to retailers and restaurants, formed a venture with closely held Wirtz Corp. to take a stake in a wine, spirit and beer distributor. The deal to invest in Missouri Beverage Co. is expected to be completed next month, according to a statement yesterday from the companies that didn’t disclose terms. The agreement brings together McLane’s logistics expertise and Wirtz’s experience in the U.S. Midwest, Wirtz President W. Rockwell “Rocky” Wirtz said. [...]

The deal fulfills part of a projection by Berkshire Chairman Warren Buffett last year that the trucking unit would build its business. McLane Chief Executive Officer Grady Rosier bought two alcoholic-beverage wholesale distributors in 2010 and last year acquired Meadowbrook Meat Co., a North Carolina-based business that supplies national restaurant chains.

Israeli Billionaire Opens Industrial Park in Nazareth (Bloomberg)

Wertheimer is now only "Honorary Chairman Emeritus" of Iscar; his son is now the Chairman.

Israeli billionaire Stef Wertheimer, founder of the Warren Buffett-owned Iscar Metalworking Cos., opened an industrial park in Nazareth today that intends to provide manufacturing jobs for local Arab residents. The park’s aim “is to use the skills of the people of Nazareth and surrounding area,” to create export-oriented products, Wertheimer said. Unemployment and poverty rates for Israeli Arabs, who comprise about 20 percent of the country’s population, are higher than for the Jewish majority. [...]

Wertheimer, whose machine-cutting tools company Iscar was bought by Buffett’s Berkshire-Hathaway Inc. for $4 billion in 2006, operates five other industrial parks in Israel’s outlying Galilee and Negev regions that have attracted export-focused manufacturers. He also established an industrial park that opened in Gebze, Turkey in 2003.

Being Green: A GEICO associate on what it's like to be the Gecko (Geico Now)

Jim Parshall is a GEICO senior systems security analyst. He's also a Gecko. "I am an overgrown kid at heart (my cell phone case has Winnie the Pooh on it)," says Parshall, who has made over 100 appearances in costume as GEICO's green spokes-reptile. GEICO Now asked Jim Parshall how someone gets to be the Gecko, and how it really feels to be green.

Berkshire News Briefs - 5/1/13

Sorry, You Will Never Be Able To Trade Like Buffett (Investor Place)

Here’s a dirty secret of financial media: Putting Warren Buffett in a headline is pretty much guaranteed to give your article decent appeal. So it’s no surprise that everyone under the sun tries to derive meaning from even the slightest change Buffett makes — or more precisely, that his investment firm Berkshire Hathaway makes. A few years ago, Buffett liked railroads and Buffett liked banks. Last year, he started to like newspapers. And as I just wrote last week, Buffett doesn’t like gold and hasn’t for some time. But while interesting and good for clicks, this kind of oversimplification isn’t very helpful to investors.

New Ajit Jain Signals in the Berkshire Hathaway Tea Leaves (WSJ)

Today’s revelation that Berkshire Hathaway Inc. had poached four top executives from American International Group Inc. was big news all on its own. But it could also offer an important hint about a topic that’s a constant topic of speculation for Berkshire shareholders: who’s going to replace Warren Buffett. The four new hires, experts at insuring large and unusual risks, are defecting from AIG to set up a new property-casualty unit at Berkshire that reports directly to Ajit Jain, the mastermind behind many of Berkshire’s past successes in the world of insurance.[...]

But if it turns out that Jain is the one to fill Buffett’s shoes, the AIG executives who start their new jobs at Berkshire on Monday morning constitute a formidable bench that could step in to Jain’s current role as Berkshire’s insurance guru.

What Do Buffett's 4 New AIG Hires Mean for Berkshire Investors? (Fool)

On Friday, Berkshire Hathaway announced it has hired four senior executives from American International Group. So who, exactly, did Buffett snag from the notorious insurance giant? First, there's Peter Eastwood, a 22-year AIG veteran who most recently headed up the company's domestic property-casualty operations. Next, David Bresnahan served as president of AIG's Lexington unit since June, 2011. Then there's Sanjay Godhwani, who was president of AIG's property-casualty operations in Latin America and the Caribbean. Finally, Berkshire also hired David Fields, who formerly worked as AIG's president of risk finance.

Did Berkshire's Poaching Just Send AIG Back Into the Abyss? (Fool)

Executives move from from one company to another all the time -- that's a normal proceeding of the business world. But when several high-ranking executives leave all at once for the same company, we're often seeing a piece of a larger puzzle. That's what we saw this past Friday, when it was announced that four top employees were defecting from AIG to join the team at Berkshire Hathaway. [...]

So with three of the new employees heading major P&C units for AIG, their knowledge will surely help Berkshire to expand where necessary. The final member, Bresnahan, led the excess and surplus operations -- one of AIG's most successful segments, with the company dominating the market with an estimated 20% share.

The Smartest Thing Warren Buffett Ever Said (Fool)

Berkshire Hathaway CEO Warren Buffett is never shy about sharing wisdom. The brilliant investor is known for witty quips ("Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.") as well as longer parables (such as "The Superinvestors of Graham-and-Doddsville"). But could any one of Buffett's gems of wisdom be the best? Could there be one Buffett-ism to rule them all? To find out, I grabbed five game Fools to weigh in.

What's the Best Way to Value Berkshire? (Morningstar)

Given its complexity, as well as the size and diversity of its businesses, valuing Berkshire Hathaway is unquestionably a challenge. The most commonly cited methods for valuing the company's shares include the use of an earnings-based multiple, a book-value-based multiple, a two-column approach, a float-based methodology, and, finally, a discounted cash flow valuation. In some cases, investors will use a combination of these different methodologies to value different parts of the business, or as a way to triangulate their own estimates. We believe that understanding the benefits and shortfalls of each of these methodologies can provide valuable insight into the ways in which different investors are approaching the firm's overall valuation.

Buffett Challenger Kass Prepares For Meeting, Munger Test (Bloomberg)

Buffett, 82, has sought to refocus attention at the meeting on Berkshire by allowing journalists and analysts to alternate with the audience in asking questions of him and Vice Chairman Charles Munger. Kass, founder of Seabreeze Partners Management Inc., answered Buffett’s call to change the panel by adding an investment professional who’s betting on the stock’s decline. “He wanted to spice up the annual meeting, and to make it more interesting from the context of the questions, as opposed to a bunch of softballs or non-Berkshire-related political questions, tax questions, policy questions,” Kass said.

IT pro has a hair-raising hobby (IDG)

Berkshire Hathaway Media Group is the collective name for all the newspapers Warren Buffett bought last year.

By day Chad Roberts, 35, is a Windows Server and Exchange administrator for Berkshire Hathaway Media Group. For play he's an award-winning competitive beardsmith and founder of the RVA Beard League in Richmond, Va. [...]

"I think since a lot of IT guys are behind the scenes, back in the server room, or off in some corner, the cultural expectations are different from, say, that of the sales staff who are a public face of the company and need to appeal to the absolute maximum number of potential clients. In IT, it's more about knowledge, results, and ability, than your choice of hair style."