Berkshire News Briefs - 11/22/13

Berkshire Hathaway real estate brand wants to compete online with Trulio, Zillow (Des Moines Register)

For-sale signs bearing the name of Warren Buffett’s flagship company Berkshire Hathaway will start appearing Thursday in Des Moines area front yards. [...] But the biggest change for the resulting firm, Berkshire Hathaway HomeServices First Realty, might be what appears online. BerkshireHathawayHS.com will host a national home listing database as well as market research for consumers. Ron Peltier, chairman and CEO of the parent company HomeServices of America, said he wants the company’s new website to compete with home listing aggregators Zillow.com and Trulia.com.

In other real estate news, the former Prudential real estate brokerages joining Berkshire Hathaway in the news this week include a large Florida-wide agency, Des Moines, IA, Irvine, CA, and Denver, CO.

Warren Buffett's Biggest Losers (Fool)

The latest update from Berkshire Hathaway about its stock holdings at the end of the third quarter was released last Thursday, and there were three companies that lost Berkshire Hathaway and Warren Buffett a combined $1.4 billion of value from the second quarter to the third. [...] In the second quarter, Berkshire Hathaway's 400 million shares of Coca-Cola were worth just north of $16 billion -- but at the end of the third quarter, that number had fallen down to $15.2 billion, for a total loss of $892 million, or about 5.5%. [...] The difficulties of IBM have been well documented, and the 3% fall in this tech giant over the quarter resulted in a $400 million loss to the $13 billion position Berkshire Hathaway held. [...] Procter & Gamble remains the fourth largest position in the Berkshire Hathaway portfolio, but its 2% dip in price meant that Berkshire saw an unrealized loss of around $75 million.

What Is Buffett's Plan With ExxonMobil? (Fool)

Warren Buffet's strategy is well known. He likes to buy companies with large moats, competitive advantages, and predictable cash flows that will be around for a long time. The ExxonMobil purchase fits very well with that strategy. As the largest non-government owned oil company, it has immense economies of scale, considerable expertise in complex projects, numerous government connections, a fortress-like balance sheet, and a low cost of capital.

Carpet for a World of Health and Abundance (Sacramento Bee / PR Newswire)

William McDonough and Patcraft, a division of Shaw (a Berkshire Hathaway Company and the world's largest carpet manufacturer), collaborated to design Butterfly Effect flooring to demonstrate how a product—carpet—can be part of a positive path toward a healthier world. [...] Two percent of proceeds will go directly to help St. Jude Children's Research Hospital fund their life-saving treatments and groundbreaking research in pediatric cancer. "The Butterfly Effect describes the notion in chaos theory that something as small as a butterfly flapping its wings in China can yield something as significant as a hurricane off the coast of Africa. As designers, we like our work to be connected to bigger ideas," says William McDonough. "The Butterfly Effect collection demonstrates the power of inspiring design, the ripple effects of Cradle to Cradle CertifiedCM products, and how we can help pediatric cancer patients globally via research."

How Kinder Morgan Is Like Berkshire Hathaway And Why Both Should Outperform (Seeking Alpha)

At first glance Berkshire Hathaway and Kinder Morgan appear to be very different [...] Although most people won't look far past these superficial differences, those who dig deeper can start to see how similar both companies are. Both Kinder Morgan, Inc. and Berkshire Hathaway share a number of traits which are generally associated with market outperformance.

Warren Buffett Watch: Thinking outside ‘asbestos tort box’ (Omaha World-Herald)

This is a regular feature in the Omaha World-Herald that wraps up a lot of smaller stories about Berkshire Hathaway and Buffett. Here are short excerpts from four unrelated items in the article:

Recent discussion about Berkshire Hathaway Inc.’s asbestos risk insurance prompted a contact from Rachel Maines, a visiting professor at Cornell University’s School of Electrical & Computer Engineering. [...] But she disputes that narrative’s facts and says responsibility for asbestos-related claims often is wrongly assigned to property owners and others who are sued. [...]

Berkshire Chairman and CEO Warren Buffett got a good review from the Las Vegas Review-Journal after his MidAmerican Energy division and other parties agreed to a settlement viewed as pro-consumer. [...]

“I’m glad you didn’t try and cash that check,” the nurse said. “This old man is from a nursing home. He sometimes dresses up and pretends he is Warren Buffett, but he is really not.” [...]

In a rare joint interview, Buffett and Berkshire Vice Chairman Charlie Munger told Patricia Sellers for Fortune magazine and CNN that they aren’t the smartest guys around. [...]

Warren Buffett: How to teach your children about money (NBC News)

Most parents know how important it is to teach kids about money and managing it properly. There was a study many years ago questioning how to predict business success later in life. The answer to the study was the age you started your first business impacted how successful you were later in life. Teaching kids sound financial habits at an early age gives kids the opportunity to be successful when they are an adult.

Warren Buffett's Secret: He Was a Shoplifter (Fool)

Before Warren Buffett became the world's greatest investor at Berkshire Hathaway, he was a world-class shoplifter. He retold the story, which was published in The Snowball, an authorized biography of his life. Warren Buffett tells Alice Shroeder, the author, that he and a friend had a particular favor for stealing from Sears. [...] What's truly remarkable is that, before this story was ever told in his biography, it wasn't ever really public. Buffett could have taken this story to the grave. But he didn't. He told it, and he told it honestly in a book that he knew millions of people would read.

The Dairy Queen(R) System and Orange Julius(R) Encourage Fans to Name the "Today" Show Goldfish Julius (MarketWatch / BusinessWire)

The Dairy Queen system, part of Berkshire Hathaway , has the perfect name for the "Today" show's Orange Room goldfish mascot: Julius. The show welcomed its newest member and is now turning to viewers to help name it. [...] Vote for the name "Julius" by visiting [http://www.today.com/pets/help-name-orange-room-goldfish-2D11632485] International Dairy Queen, Inc. acquired the Orange Julius concept, famous for its frothy fruit-blended Julius Original drink, in 1987, but the highly popular brand has been around for more than 85 years.

Berkshire News Briefs - 11/15/13

The big news of the week is the quarterly release of the 13F, showing the changes to Berkshire Hathaway's stock portfolio for the quarter that ended on September 30, so let's start with that.

Berkshire Hathaway Stock Holdings (Dataroma)

I always link to this site every quarter... it gives a great rundown of all the current holdings and highlights the changes.

Warren Buffett Makes Major Moves (Fool)

The latest SEC filing from Warren Buffett's Berkshire Hathaway listing the company's stock holdings at the end of the third quarter was released today, and the Oracle of Omaha has made some significant changes to his portfolio. [...]

1. Added a $3.5 billion position in ExxonMobil
2. Sold $500 million worth of ConocoPhillips
3. Unloaded 75% of the GlaxoSmithKline

Why Did Buffett Reduce ConocoPhillips Stake And Add Exxon Mobil? (Seeking Alpha)

Berkshire Hathaway's latest disclosure revealed the company sold 10.7 million shares of ConocoPhillips shares while buying 40 million shares of Exxon Mobil. At first blush, it is hard to understand Mr. Buffett's rationale. We'll look at several different reasons why Buffett may have made the move and try to figure out what he's thinking.

Berkshire Hathaway increases DaVita stake (NASDAQ)

This is notable because it happened just last week, after the reporting period for the 13F changes above.

Berkshire Hathaway, already a beneficial owner of shares of DaVita Healthcare Partners Inc., bought 3,700,294 shares of that company's common stock between Nov. 6 and Nov. 8. At prices ranging from $53.25 to $55.98 per share, Berkshire paid a total of $204,046,688 while increasing its stake in the company by 11.8%.

Berkshire Hathaway Specialty Insurance Adds Healthcare Risk Management (MarketWatch / BusinessWire)

Berkshire Hathaway Specialty Insurance today announced that it is expanding its healthcare professional liability capabilities to provide customers with highly customized risk management support. The company will now reimburse qualified healthcare professional liability insurance policyholders for the costs of pre-approved risk management services of their choice.

Warren Buffett’s 9/11 payday (NY Post)

Mayor Bloomberg has recruited fellow billionaire Warren Buffett to take over a taxpayer fund set up to pay claims stemming from the toxic Ground Zero cleanup, The Post has learned. A surprise plan under review would give $270 million in federal funds managed by the World Trade Center Captive Insurance Co. — a nonprofit entity controlled by Bloomberg appointees — to Buffett’s holding company, Berkshire Hathaway, which would convert the cash into a $600 million commercial-insurance policy. Buffett’s company would absorb the risk of new 9/11 litigation and health claims, though it’s unclear how much profit he stands to make on the deal. The city would receive no dividends, an official said.

Should You Buy Berkshire Hathaway Today? The Behavioral Finance View (Forbes)

Oceans of e-ink have been spilled analyzing the pros and cons of Berkshire Hathaway. Should you put a dime into this particular jukebox? I doubt whether anything new remains to be said on the fundamental or technical side. Instead, as a psychologist, I want to walk you through what Hegel, Husserl and Heidegger (or Moe, Larry and Curly) might call the phenomenolgy of buying Berkshire Hathaway.

Hunting for Warren Buffett's Next Elephant (Fool)

Warren Buffett is on the hunt again and this time he has even more cash to spend. Indeed, Berkshire Hathaway's cash pile has swelled to more than $40 billion and an elephant-sized acquisition had recently got away from him. While it's impossible to know what Buffett will acquire next for sure, we can compile a list of possible candidates based on previous acquisitions.

Prudential --> Berkshire Hathaway HomeServices

This week's "Former Prudential Office Joins Berkshire Hathaway HomeServices" stories came from Bucks County, PA, Philadelphia, PA, Lehigh Valley, PA, Boulder, CO, Seattle, WA, Des Moines, IA, Chicago, IL, Houston, TX, and all major cities in Ohio (Cleveland, Columbus, Dayton, and Cincinnati all had one Prudential mega-franchise).

And now, here it is, your moment of zen...

Glenn Close & Warren Buffett Sing 'The Glory Of Love' (YouTube)

Berkshire News Briefs - 11/8/13

Berkshire Hathaway Releases Scathing Response To Scripps’ Allegations (ValueWalk)

Berkshire Hathaway Inc. doesn’t usually respond to criticism, preferring to explain its decisions in the company’s famous annual shareholders letter, but it seems that Mark Greenblatt at Scripps News has hit a nerve. “Over a century ago, Mark Twain observed ‘Never pick a fight with people who buy ink by the barrel.’ We are about to ignore Twain’s sage advice,” the company wrote in a press release.

Here is the Berkshire Hathaway press release.

MiTek Acquires Cubic Designs, Inc. (Business Wire)

MiTek Industries, a Berkshire Hathaway company, and the world’s leading supplier of advanced engineered structural connector systems, equipment, software and services for the building components industry, announced today that it has acquired Cubic Designs, Inc. Cubic is the recognized leader in the design, prefabrication and installation of custom work platforms and structural mezzanine systems used in distribution, processing, manufacturing, aerospace, and other types of operating facilities.

BH Media CEO: No new newspaper deals in the works (Lynchburg News & Advance / AP)

The head of Warren Buffett’s newspaper subsidiary said Wednesday that the company is not working on any new newspaper deals despite its reported interest in possibly acquiring parts of Tribune Co. BH Media Group President and CEO Terry Kroeger said during the annual conference of Associated Press Media Editors in Indianapolis that he wishes the company had some new newspaper acquisitions in the works, but it does not.

Inside look at NetJets' $13M investment at PBIA (South Florida Business Journal Slideshow)

Berkshire Hathaway's private airline, NetJets, unveiled its $13 million facility at Palm Beach International Airport on Wednesday. NetJets partnered with Signature Flight Support Corp. to develop the 10,000-square-foot, state-of-the-art facility, which is located on the northwest corner of the West Palm Beach airport. PBIA is one of the airline's most popular domestic destinations, with more than 10,000 NetJets flights in and out of the airport annually.

Revisiting Berkshire Hathaway’s Acquisition of BNSF (Rational Walk)

Four years have passed since Berkshire Hathaway announced that it would acquire Burlington Northern Santa Fe (BNSF) in a cash and stock transaction. The acquisition was explicitly meant to be an “all-in wager on the economic future of the United States” according to Berkshire Hathaway Chairman Warren Buffett. In November 2009, the United States was starting to emerge from the most severe economic downturn since the Great Depression and purchasing a major railroad was a controversial move based on what appeared to be a relatively full valuation. Enough time has now passed to revisit the rationale behind the acquisition and to judge how the railroad has performed in the midst of a slow economic recovery.

1 More Reason Berkshire Hathaway's GEICO Is Destined To Be King (Fool Video)

The personal auto insurance market is one of the toughest spaces to compete in the broader insurance market. And with Berkshire Hathaway's GEICO division stealing the No. 2 spot from competitor Allstate in the past few weeks, it's become clear that the Gecko is doing something right. Though Allstate and Progressive have been promoting the new use-based insurance model, the new technology is still not standing up to GEICO's tried-and-true method.

Berkshire Hathaway GUARD Expands BOP Product to California (Insurance Journal)

Berkshire Hathaway GUARD Insurance Companies (formerly known as GUARD Insurance Group) has begun offering its business owners policy (BOP) and umbrella coverage in California. The company already has a presence in the state offering workers’ compensation with a premium total of about $100 million and is looking to provide a complement to this coverage, while continuing its focus on small- to medium-sized accounts. [...] Berkshire Hathaway GUARD first began writing other lines in Pennsylvania five years ago and has since launched a full complement of products under the name of BizGUARD Plus in 11 states. [...] In October of 2012, GUARD Insurance Group was acquired by National Indemnity Co., which is a wholly owned subsidiary of Berkshire Hathaway. This fall, GUARD unveiled a new logo and identity as Berkshire Hathaway GUARD Insurance Companies.

Buffett's Purchase Of Prudential Realty Is A Good Sign For Real Estate (Seeking Alpha)

On October 30, 2012, Warren Buffett's Berkshire Hathaway (BRK.A) (BRK.B) made the investment community sit up and take notice with a move into a significant area of our economy. This time, he did it with a bold move into the real estate market with the purchase of local Prudential agencies by Berkshire Hathaway HomeServices. We are already noticing the new real estate for sale signs here in Naples, Florida. [...] Going national by using an established brand like Prudential shows that he is serious in his intention to make large gains in this area. [...] The "Berkshire" name will give the Prudential real estate agents increased credibility.

More Real Estate News

Prudential Real Estate agencies switched their names to Berkshire Hathaway HomeServices in Houston, Kansas City, Portland, and Allentown PA (which brought in Mario Andretti for a kick-off party). Many more brokerages have also joined Berkshire Hathaway in California, Michigan, Florida, Tennessee, and Colorado, with plans to switch names to the new brand in 2014. Like I said last week, there are so many of these little stories, I stopped linking to all of them and am now just summarizing.

Berkshire Hathaway 3rd Quarter 2013 Earnings

Berkshire Hathaway reported their 3rd quarter earnings for 2013 on Friday afternoon. The 3rd Quarter ended on September 30.

Berkshire Hathaway does not do quarterly conference calls.

Berkshire Profit Rises 29% on Gains at Railroad, Investments (Bloomberg Businessweek)

Warren Buffett’s Berkshire Hathaway Inc. said third-quarter profit climbed 29 percent on investments and gains at non-insurance businesses including railroad Burlington Northern Santa Fe.

Net income rose to $5.05 billion, or $3,074 a share, from $3.92 billion, or $2,373, a year earlier, the Omaha, Nebraska-based company said yesterday in a statement. Operating earnings, which exclude some investment results, were $2,228 a share, missing the $2,403 average estimate of three analysts surveyed by Bloomberg.

Berkshire has benefited from an expanding U.S. economy and stands to make further gains as consumer demand picks up and the housing market recovers. The company’s subsidiaries haul freight, insure cars, generate electricity, make building supplies and sell products from running shoes to diamond rings.