Berkshire News Briefs - 1/26/17

BNSF budgets $3.4 billion for 2017 capex plan

BNSF Railway Co. unveiled a $3.4 billion capital expenditure plan for 2017, the Class I announced yesterday. Similar to last year's $3.9 billion plan, the largest component of this year's program will be to replace and maintain the railroad's core network and related assets. That aspect of this year's work will amount to about $2.4 billion, BNSF officials said in a press release. [...] In addition, BNSF expects to spend $400 million on expansion projects; $100 million on positive train control implementation; and $400 million on locomotives, freight cars and other equipment acquisitions.[...]

Kansas logistics park offers big intermodal-growth potential for BNSF

BNSF Railway Co. has tried to accelerate ID efforts in recent years to gain as big a business boost as possible, especially of the intermodal variety. From 2011 through 2015, the Class I each year landed more than $1 billion worth of new or expanded facilities along its lines, including $1.2 billion in 2015 and nearly $1.5 billion in 2014. And as of late last month, BNSF was on pace to surpass the $1 billion mark for the sixth-straight year, with about 100 ID projects on the 2016 docket, including several at a fast-growing, footprint-swelling logistics park in Kansas. [...]

J.B. Hunt, BNSF will review revenue split

[...] Last year, about $3.7 billion -- 60 percent of J.B. Hunt's revenue -- came from its intermodal segment. Michael Haverty, who was the president of Santa Fe Railway when he approached J.B. Hunt with the original intermodal deal in 1989, has estimated that BNSF makes about $1 billion annually from the deal. Santa Fe Railway Corp. and Burlington Northern Inc. merged to form BNSF in 1993.

The "evergreen" intermodal contract automatically renews each year. The agreement stipulates that the revenue division will be negotiated by the two companies and is reviewed quarterly. J.B. Hunt is questioning the period beginning May 1, 2016. [...]

Richline Group Acquires The Aaron Group

Richline Group, a wholly-owned subsidiary of Berkshire Hathaway, and The Aaron Group, a leading jewelry manufacturer and marketer, announced today that Richline has acquired The Aaron Group business effective today, January 11th. [...]

Since its founding as Samuel Aaron Jewelry in 1950, the Aaron Group has grown from its New York City roots to become a widely renowned, vertically integrated international jewelry manufacturer. Along the way, the Aaron Group has remained a true family business and, under the stewardship of third-generation leader Robert (Bobby) Kempler, has achieved stature as a major global force, with operations, factories, partnerships and hundreds of employees in New York, London, Mumbai, Hong Kong, and Guangzhou. [...]

Buffett’s Berkshire Buys German Pipe Company Wilhelm Schulz

A unit of Warren Buffett’s Berkshire Hathaway Inc. agreed to buy Wilhelm Schulz GmbH, a closely held German maker of piping components, as the billionaire accelerates an expansion in Europe.

Rainer Floeth, chief executive officer of Krefeld, Germany-based Wilhelm Schulz, confirmed by phone that Berkshire’s Precision Castparts had agreed to buy the company. He declined to elaborate on terms due to contractual obligations. The deal was first reported by German newspaper Handelsblatt, which cited Precision Castparts Corp. CEO Mark Donegan. [...]

AIG to pay Buffett's Berkshire about $10 billion in insurance deal

American International Group Inc (AIG.N) has agreed to pay roughly $10.2 billion to Warren Buffett's Berkshire Hathaway Inc (BRKa.N) to take on many long-term risks on U.S. commercial insurance policies it has already written.

The reinsurance transaction covers "long-tail" exposures, which are liabilities that emerge long after policies are issued, from excess casualty, workers compensation and other AIG policies issued before last year.

Berkshire's National Indemnity Co unit, led by Buffett's reinsurance chief Ajit Jain, will take on 80 percent of net losses in excess of the first $25 billion, with a maximum liability of $20 billion. [...]

The 5 Operating Principles Behind Berkshire Hathaway’s Uniquely Profitable Reinsurance Business

In his 2015 letter, Warren Buffett warned Berkshire Hathaway shareholders that prospects for the reinsurance industry had dimmed. However, as this week's $1.5 billion deal with The Hartford illustrates, five operating principles will enable Berkshire's reinsurance activity to beat competitors and remain comfortably profitable. [...]

1. Maintain unmatched financial strength and reputation
2. Focus on large, unusual risks
3. Price risks rationally and act quickly
4. Keep risks on your books
5. Stay disciplined and carry on

More Links...

The Brilliant Blunders and Investments that Made Warren Buffet a Billionaire

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Berkshire Hathaway to Offer Services in Malaysia

Berkshire Hathaway Is Not Built To Last

Berkshire's Decker Says Buffett Can Take His Time With $85 Billion

Berkshire News Briefs - 12/14/15

Buffett's Investment Managers Posting More Gains Than Losses in 2015 (Forbes)

The two investors Warren Buffett hired several years ago to help manage and eventually take over Berkshire Hathaway portfolio had a fantastic start, with returns reminiscent of their boss’ virtuosity. But recent results have been more mixed, including so far in 2015.

For Warren Buffett, a house divided on climate change (Las Vegas Sun)

Buffet is a study in contrasts. Berkshire Hathaway owns power companies, natural gas pipelines, coal plants and large chunks of oil companies. Buffett’s electricity providers are fighting across the country in courts, legislatures and utility commissions against policies that mandate utility companies pay rooftop solar customers for the energy that they provide.

Conversely, Buffett and his company have invested $15 billion into renewable energy since 2000. He is a dominant wind provider in the Midwest. His Nevada utility has a portfolio that’s one-fifth renewables. In July, Buffett promised the White House he would double what he’s already spent to build more wind farms and solar arrays, close coal plants and reform the nation’s power grid.

Buffett May Get Dow Chemical Stock, But Regret It (WSJ MoneyBeat)

Warren Buffett could wind up with a hefty new stock position soon. But he may not want it.

Mr. Buffett’s Berkshire Hathaway Inc. owns a big slug of preferred shares in Dow Chemical Co., the industrial giant that the Journal reported last night is in advanced talks to combine with DuPont Co. Berkshire got the shares in 2009, when Mr. Buffett’s company gave Dow $3 billion to help finance its purchase of chemical maker Rohm & Haas Co. In return, Berkshire received preferred stock that pays an 8.5% annual dividend. [...]

From Mr. Buffett’s perspective, however, that may not be the best outcome. Berkshire has been collecting $255 million in interest on the preferred shares each year, and Mr. Buffett has long warned shareholders that he’d be hard-pressed to earn similar returns for his crisis-era investments as they roll off the books.

Buffett's Berkshire Hathaway Cuts Munich Re Holding to 4.6% (Bloomberg)

Warren Buffett’s Berkshire Hathaway Inc. further reduced its stake in Munich Re as the billionaire investor re-evaluates the attractiveness of the reinsurance market.

The holding was trimmed to 4.6 percent from 9.7 percent, Munich Re said in a filing Friday. Buffett’s firm once owned about 12 percent of the Munich-based reinsurer and has been lowering the stake this year. [...]

Where Could Berkshire Hathaway Be in 10 Years? (Fool)

A round-up of opinions from Fool writers...

I think there's a good chance the Berkshire Hathaway of 2025 will have a much larger presence in energy. In fact, the company's energy arm, Berkshire Hathaway Energy, already represents a substantial portion of the company's business, equal to about 9% of year-to-date sales and 15% of its assets. Berkshire Hathaway Energy focuses on the kinds of fixed-fee, long-term contracted revenue that results in the predictable cash flow that is the hallmark of the kind of business model Buffett likes. [...]

AIG, Berkshire Get $400 Million as Alleghany Deal Winds Down (Bloomberg)

Weston Hicks’s Alleghany Corp. will pay $400 million to wind down reinsurance deals with American International Group Inc. and Warren Buffett’s Berkshire Hathaway Inc. for policies that date back decades.

Transatlantic Reinsurance Co., owned by Hicks’s firm, will end contracts that covered asbestos-related illness and environmental liabilities, according to an Alleghany regulatory filing Tuesday. [...]

Has Warren Buffett Finally Found a Winning Big Oil Investment? (Fool)

[...] In the recent release of Berkshire's 13F filing with the SEC, the company disclosed that it had more than doubled its holdings in midstream and downstream integrated giant Phillips 66 in the third quarter.

According to the filing, Berkshire bought more than 31 million shares of the company, putting Berkshire's total holdings in Phillips 66 stock at 61.5 million shares. Add it all up, and Berkshire now owns more than 11.5% of the refining and petrochemicals giant.

Warren Buffett just bought this stock personally (CNN Money)

[...] Buffett rarely makes personal investments outside of Berkshire Hathaway. He disclosed one on Thursday.

Buffett personally bought 2 million shares of a company called Seritage Growth Properties (SRG). That works out to an 8% stake and makes him Seritage's second-largest shareholder. [...]

What the heck is Seritage? It's a real estate investment company that was spun off by struggling retailer Sears (SHLD) earlier this year. Seritage owns 262 retail locations. Most of them are Sears or Kmart stores. (Sears also owns Kmart.) Seritage then leases the properties back to the Sears and Kmart stores.

2016 Berkshire Hathaway Annual Meeting Dates Announced (Guru Focus)

Berkshire Hathaway just announced The 2016 Annual Shareholders Meeting information. The 2016 Berkshire Hathaway Annual Meeting will be held on Saturday, April 30, 2016 at the same location as last year [...]

The Billionaire and the Ukulele: Warren Buffett’s Lifetime Investment (Hear Nebraska)

More than 65 years have passed since Warren first picked up the ukulele. In that time, he’s worn many hats: husband, father, investor, Berkshire Hathaway CEO, billionaire, philanthropist. He’s been dubbed “The Oracle of Omaha” and, according to 2015 Forbes Magazine rankings, is the third richest person in the world.

And he still plays the ukulele.

Berkshire News Briefs - 10/3/13

Buffett to Get $2 Billion Goldman Sachs Stake With Warrants (Bloomberg Business Week)

Warren Buffett’s Berkshire Hathaway Inc. will get more than $2 billion in Goldman Sachs Group Inc. stock through warrants acquired during the depths of the 2008 financial crisis. Berkshire will receive about 13.1 million shares in Goldman Sachs, according to an agreement that uses the average closing price on the 10 trading days through today to calculate Buffett’s stake. [...] Goldman Sachs turned to Omaha, Nebraska-based Berkshire in 2008 to bolster capital and shore up market confidence when shares plunged following the collapse of Lehman Brothers Holdings Inc. Buffett, Berkshire’s chairman and chief executive officer, invested $5 billion for a preferred holding and got warrants to buy $5 billion of stock for $115 a share.

NV Energy approves sale to Buffet's MidAmerican Energy (Reno Gazette Journal)

The deal was announced over the summer, and now it's official.

Shareholders of NV Energy Inc. have approved selling the Nevada utility to Berkshire Hathaway’s MidAmerican Energy utility for $5.6 billion. NV Energy announced the shareholder vote on Wednesday, but the deal isn’t expected to close until sometime in the first quarter of next year because it still needs regulatory approval. The NV Energy deal will be one of MidAmerican’s biggest, and it will be a sizeable addition to Warren Buffett’s Omaha-based Berkshire conglomerate.

A stronger network, with more capacity (Railway Age)

This is a long article about BNSF's capital investments, if you're a fan of the railroad business.

BNSF's 2013 capex program is a whopping $4.3 billion, the industry's biggest, about a 16% increase from 2012's $3.6 billion. This year's program was initially set at $4.1 billion, but was increased by $200 million "due to more expansion-related spending," Rose said in the railroad's Form 10-Q for the period ended June 30, 2013. "We will spend $2.3 billion in capital in 2013 to maintain a strong core network and related assets. In addition, we will continue investing in our locomotive and railcar fleet and in projects that expand and improve the efficiency of our infrastructure, and continue installing Positive Train Control in response to a federal mandate." The program includes about $200 million for PTC and $800 million for terminal, line, and intermodal expansion and efficiency projects.

The Consequences of Poaching: Berkshire Edition (Daily Finance)

With Berkshire's entrance into the commercial property and casualty insurance market, it's stepped on some pretty big toes: AIG's. Trying to boost its measly 1.6% market share of the U.S. excess and surplus liability market, estimated to be around $25 billion annually, Berkshire's poaching may have cramped its other operations. After 20 AIG employees left the company for Berkshire's new division, the former decided to halt any future ties with the latter's reinsurance business. [...] Based on AIG's 2012 annual report, Berkshire was its top reinsurer with $2.19 billion in coverage, including a $1.6 billion policy from 2011 on AIG's outstanding asbestos claims. Berkshire's policies represented 8.5% of AIG's total reinsurance of $25.8 billion. In terms of Berkshire's total 2012 underwriting revenue from its reinsurance businesses, the $2.19 billion would equate to 14%.

Berkshire’s Benjamin Moore Seeks Third Chief in Two Years (Bloomberg)

Benjamin Moore, the paint maker owned by Warren Buffett’s Berkshire Hathaway Inc., said Chief Executive Officer Robert Merritt left the company. Benjamin Moore, which hired Merritt last year, is searching for a new leader and expects to name a replacement “in the coming week,” the Montvale, New Jersey-based company said yesterday in a statement on its website.

But on the plus side, in Benjamin Moore news...

Benjamin Moore Unveils 'Breath Of Fresh Air' As Its 2014 Color Of The Year (Sacramento Bee)

Benjamin Moore, a unit of Berkshire Hathaway and one of North America's most respected paint and coatings manufacturers, unveiled today its highly anticipated Color of the Year for 2014 to be "Breath of Fresh Air" (color number 806) as part of its Color Trends 2014 palette. Announced by newly appointed Benjamin Moore Creative Director Ellen O'Neill at the opening of the company's New York City showroom during Fall Market 2013 for architects and designers, Breath of Fresh Air is a gorgeous, ethereal blue serving as a "new neutral" that is livable and functional.

Buffett’s Alpha Paper Illustrates Buffett’s Achievements (Value Walk)

The paper finds that studying data of all listed US stocks from 1926 to 2011, Berkshire Hathaway Inc. has the highest Sharpe ratio of all. Moreover, Buffett also has the highest Sharpe ratio of all US mutual funds that have been around for more than 30 years. [...] The paper estimates that Buffett’s leverage ratio has averaged 1.6-to-1 during the past 30 years, boosting risk and excess return in that proportion. Sustaining a leverage ratio of 1.6:1 over several decades and through several significant periods of market turbulence has boosted Buffett’s returns when many other market participants have been forced into fire sales and write-downs.

Berkshire Hathaway launches business crisis event cost coverage insurance (Insurance Business Review)

Berkshire Hathaway Specialty Insurance has unveiled a new Business Crisis Event Cost Coverage policy, to cover costs incurred to manage a business crisis, including the fees of a crisis management consulting firm. The new policy offers up to $100,000 to hire a crisis management consulting firm to advise the policyholder in managing adverse media coverage and public perceptions, following a crisis. The events include a serious accident or explosion, an act of violence, or a contamination incident. Moreover, the coverage also provides expenses required extending immediate support to victims and their family members, including funeral expenses, psychological counseling, travel, and temporary living costs.

Nebraska Furniture Mart president recalls Kansas City store as lesson in patience (Omaha World Herald)

The Nebraska Furniture Mart's new store in Kansas City, Kan., was a disaster for nearly two years. It was overwhelmed with customers. Deliveries lagged purchases by 30 days or more. Problems began multiplying almost as soon as the store opened in 2003 and didn't let up. [...] As time went by, the Omaha retailer resolved its Kansas City store's problems and the company's managers learned from their mistakes, Blumkin said. The idea of expanding into another market gradually became a possibility, and Buffett's backing did not waver. Today, the Mart is halfway to opening its third and most ambitious mega-store, a $1.5 billion, 433-acre development in suburban Dallas that's due to open in 2015.

Berkshire Hathaway's manufactured home unit offers man cave inspired by Duck Dynasty star (The Republic)

Clayton Homes is offering a new house inspired by one of the stars of the Duck Dynasty reality show. Berkshire Hathaway's home builder says the limited edition design with camouflage wall panels, wood grain linoleum flooring and a built-in gun closet would make an ideal man cave. Clayton Homes says Si Robertson from the hit A&E show is endorsing the 1,280-square-foot, three-bedroom home as a good value. The company posted a series of videos of Robertson chatting with Clayton's CEO online at http://www.claytonhomes.com .

View the Si Pad here.

Berkshire News Briefs - 9/15/13

AIG Said to Opt Against Buffett Reinsurance Amid Clash (Bloomberg)

American International Group Inc. (AIG) has decided against signing new reinsurance contracts with Berkshire Hathaway Inc. after Warren Buffett’s company started a commercial insurer competing against AIG, according to a person with knowledge of the decision. [...] Buffett said in May he was planning to add sales of commercial insurance after hiring executives from AIG including Peter Eastwood, who ran the company’s property-casualty operation in the Americas. The move challenges New York-based AIG in one of its main markets and expands Berkshire beyond its strengths in U.S. personal auto coverage and reinsurance.

Berkshire ‘A’ Shares, Soon Available In Pennies (WSJ)

Starting Sept. 16, the New York Stock Exchange plans to begin trading and quoting Berkshire Hathaway Inc. in pennies, according to a Thursday notice from the exchange. That means that the stock’s mammoth price – $168,180 on Thursday afternoon – will move in one-cent increments, rather than the current ten cents.

Improved Underwriting Results Boost RAA Companies' 1H Net Income (Property Casualty 360)

A group of 18 reinsurers belonging to the Reinsurance Association of America reported a combined 2013 first-half net income of just under $4.8 billion, up from $3.6 billion for the same companies a year ago, as improved underwriting income more than offset a slight drop in net premiums written. Similar to 2012’s first half, Berkshire Hathaway’s National Indemnity Co. accounted for over half of the group’s net income in the first six months of this year. National Indemnity reported just under $3 billion in first-half net income, far outpacing Transatlantic Reinsurance, which placed second among the group with $364.4 million in net income.

U.S. judge approves $72 mln fraud pact with Berkshire's Gen Re (Reuters)

A U.S. judge on Tuesday approved a $72 million settlement by Berkshire Hathaway Inc's General Re Corp to resolve claims that it engaged in a sham deal that helped fraudulently inflate American International Group Inc's loss reserves. The settlement's approval brings to an end nine years of shareholder litigation revolving around AIG accounting practices dating to 1999.

Shaw Industries opens carpet tile plant in China (Fibre 2 Fashion)

Berkshire Hathaway’s Shaw Industries Group, Inc. (Shaw) has announced its grand opening of a 210,000-square-foot carpet tile plant in Nantong, China – a port city 65 miles north of Shanghai. This facility offers customers in Asia quicker access to a wider range of completely recyclable, Cradle-to-Cradle-certified products, which are PVC-free and bitumen-free. [...] Expected to employ approximately 250 at full capacity, over 100 Shaw associates are onboard at this time. [...] Products manufactured in China will be sold for installation in the growing Asia market and there are no plans to export them back to the U.S.

SidePlate’s Active Projects More Than Double in 36 Months (Herald Online)

SidePlate®, a Berkshire Hathaway company that designs innovative steel building connections, today announced that it has doubled its employee base in the last 36 months to accommodate rising demand for its consulting and project-management services. As another indicator of the Company’s dramatic growth, SidePlate’s active projects have more than doubled since July 2010. [...] In 2009, Berkshire Hathaway’s MiTek® acquired SidePlate because of the Company’s sterling reputation, its innovative consulting services and technology, and its potential for the very growth that SidePlate is experiencing today.

Truss and Wall-Panel Component Manufacturers Stand Ready to Respond to Framing Labor Shortage (Herald Online)

“Housing starts are showing sustained growth, and they are predicted to spike to a run rate of 1.3 million by the end of 2014, and 1.5 million in 2015,” said MiTek’s Gregg Renner. “That’s good news, but it also indicates that the framing labor shortage won’t ease, and builders need a different approach to framing houses. That’s what MiTek’s component manufacturers offer.”

Berkshire’s Richline Makes Jewelry Deal With American Greetings (Bloomberg)

Richline Group Inc., owned by Warren Buffett’s Berkshire Hathaway Inc., reached a deal to make and distribute jewelry featuring the artwork from cards produced by American Greetings Corp. [...] Richline also has relationships with the Marie Claire brand and the National Football League.

Borsheims to open second location at Nebraska Crossing Outlets (Omaha World-Herald)

For more than a half-century, Borsheims, Omaha's iconic jeweler, has limited itself to a single store. But this fall the Berkshire Hathaway-owned retailer will break tradition and open a second location — an outlet store at Nebraska Crossing Outlets in Gretna. The outlet store, opening Nov. 15 under the banner Borsheims Boutique, will occupy a 5,500-square-foot space next to the Coach factory store.

BNSF to spend $110 million on projects in Nebraska (Omaha World-Herald)

BNSF Railway Co. on Thursday announced plans to invest about $110 million this year in maintenance and rail capacity expansion projects in Nebraska. [...] BNSF also plans to invest $35 million this year in Iowa, which is part of the railroad’s total 2013 capital investment of $4.3 billion, a record for the company. [...] Omaha-based Union Pacific’s 2013 capital investment numbers aren’t yet available, but last year the company spent about $303 million in Nebraska and $3.7 billion total on its network.

Berkshire Hathaway HomeServices Signs Nine More Affiliates (Fort Mill Times)

Berkshire Hathaway HomeServices, the new real estate brokerage network operated by HSF Affiliates LLC, today announced the signing of nine more brokerage companies for the network. The companies include: Prudential Anderson Properties, Houston, TX; Prudential California Realty, Cerritos, CA; Prudential Canyon Lake Realty, Canyon Lake, CA; Prudential Gallo, REALTORS®, Rehoboth Beach, DE; Prudential Serls Prime Properties, Lagrangeville, NY; Prudential Southeast Coastal Properties, Savannah, GA; Prudential Texas Realty, Austin, TX; Prudential Tropical Realty, Tampa Bay, FL; and Prudential Woodmont Realty, Nashville, TN. The brokerages will begin operating under the Berkshire Hathaway HomeServices flag as early as the fourth quarter of 2013. They are the latest in a series of brokerage signees announced by the new real estate network, whose total members now represent more than $1 billion in annual gross commission income.

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."