Berkshire News Briefs - 8/6/14

The biggest news of the week was the quarterly earnings report, covered in my earlier post. So I'll skip over most of the earnings-related news here.

What Warren Buffett Will Do With $55 Billion in Cash (Fool)

Of course, a large chunk of the cash on hand at Berkshire Hathaway is likely earmarked for acquisitions, but the reinvestment efforts within Berkshire may end up being equally as important to the long-term success of the company. While it may grab less attention and be less fun than imagining Buffett's next huge buyout, reinvesting in a consistently profitable business appears to be exactly what is needed to sustain the company's impressive returns.

Why Buffett's Berkshire Hathaway Is Clearly a Buy (Barron's)

A flush Berkshire Hathaway is humming along as a patient Warren Buffett awaits an opportunity to deploy some of the company's huge cash hoard of $49 billion. Berkshire's class A shares are up 2.7% today, or just over $5,000, to $194,300, leaving them just shy of their record $194,670 set in May. [...] The shares, up 8% this year, still look appealing trading for about 1.35 times the company's June 30 book value of $142,483. [...] CEO Buffett's willingness to repurchase stock at 1.2 times book backed by Berkshire's cash-rich balance sheet may help keep a floor under the stock. That floor is now around $171,000 per class A share, but it typically rises every quarter as book grows.

Berkshire Hathaway Has Raised Its VeriSign Stake Yet Again (24/7 Wall St.)

VeriSign Inc. has had two key things going for it of late. Its directory listing dominance of the .com and other domain extensions has been a dominant part of its business. It has also been at the forefront of Internet security. Now a third issue has arisen — Warren Buffett and Berkshire Hathaway Inc. have increased their VeriSign stake yet again. An SEC filing from the weekend showed that Buffett, Berkshire Hathaway and its entities now control some 12,985,000 shares of common stock. This represents a 10.4% stake of the outstanding shares of VeriSign.

Brooks Sports Moves New Home Closer to Trails (New York Times)

In August, nearly 300 employees of the running shoe and apparel company Brooks Sports Inc. will head to work at the company’s new global headquarters, three miles north of downtown Seattle. Instead of nondescript buildings in an office park, they will cross the George Washington Memorial Bridge to encounter a sculpted troll underneath, a 16-foot statue of Vladimir Lenin, art walks and running trails. The neighborhood’s motto is De Libertas Quirkas, or freedom to be quirky. [...] “You can access some of the best running trails in the city from right here,” said Jim Weber, the chief executive of Brooks, pointing across the street to the Burke-Gilman Trail, a 27-mile thoroughfare for runners and cyclists. “The opportunity to be right here, so close to our customers, is amazing.”

Which utilities are doing the most in clean energy? (Portland Business Journal)

Berkshire Hathaway actually owns two of the top 6: NV Energy and PacifiCorp.

The top is utilities for renewable energy were NV Energy (21.08 percent), Xcel Energy (18.11 percent), PG&E (16.87 percent) Sempra Energy (16.86 percent), Edison International (16.67 percent) and PacifiCorp parent Berkshire Hathaway Energy (12.71 percent).

JM Re-Aligning Engineered Products Business to Drive Growth (MarketWatch / BusinessWire)

Johns Manville (JM) today announced they would merge their American, European and Asian activities for Engineered Products into one global business unit. JM’s Engineered Products business manufactures and markets premium-quality glass and polyester nonwoven products for the building and construction industry, filtration and battery separation media, reinforcement glass fibers for composites and specialty industrial glass products.

Study Accuses Moody's Of Ratings Bias Toward Corporate Owners (Forbes)

A new study concludes that Moody’s gave significantly higher ratings on bonds and derivatives issued by companies in the investment portfolios of its two largest shareholders, including Warren Buffett’s Berkshire Hathaway and took longer to downgrade them than its rival Standard & Poor’s.

Smarter Agent’s white-label real estate apps saw 4M+ downloads in 1 year (Technically Philly)

Smarter Agent, based in Collingswood, N.J., powers mobile apps for national real estate giants like Keller Williams, Sotheby’s and Berkshire Hathaway. The “white label” apps, which show homes for sale and rent and give you direct access to a realtor, have been downloaded more than four million times in the last year, said cofounder Brad Blumberg. [...] Its main competitors are online listings sites and mobile apps Zillow and Trulia, which recently became one company, when Zillow bought Trulia for $3.5 billion. Blumberg said that by covering 420 realtor markets around the country, Smarter Agent “exceeds the reach” of the newly merged company.

1 Thing Warren Buffett Wants You to Know About Berkshire Hathaway Inc. (Fool)

Buffett's second point was to highlight that Berkshire Hathaway also has a stable of noninsurance businesses, including Burlington Northern Santa Fe, Berkshire Hathaway Energy, Lubrizol, Marmon and many, many more. Even thought he mentioned the stocks first, those investment portfolio are clearly not his main focus [...] In fact, from 1990 to 2013, the per-share earnings from its noninsurance businesses have grown at an average annual rate of 21.5%, whereas its investments have grown at 13%. And as you can see, that staggering difference resulted in the earnings of the non-insurance businesses standing nearly 90 times higher today than in 1990, versus "just" a 16 times greater value in its investments.

Berkshire News Briefs - 4/14/14

A group of MBA students from Western University of Canada's Ivey Business School recently traveled to Omaha to meet Warren Buffett, and were nice enough to publish their notes on-line. There are many interesting business and non-business questions and answers. Here's an excerpt of one of the non-business ones:

Question # 8: How would you rate your own success on a scale of 1-10? Answer # 8: I don't believe I'm very different from others. I still eat the same food, have a good time when I go out with friends, just like others, the only difference is I travel a little better now. I take my jet when I travel. Success for me is doing what you love and are passionate about and as long as you are doing what you like you'll stand out and outperform. If I have to rate myself I'll always believe I'm a 10. I feel that the way the rich often show off their wealth as a form of "elephant bumping". Buying another house would only be an inconvenience, I’d feel obligated to stay in it instead of my current home which is quite comfortable. For example, I don’t like yachts. They only offer the opportunity to do things with greater difficulty at sea, where I feel trapped, that I could have easily done on land (at the Y) for a fraction of the cost. Ultimately, money is not the ultimate measure of success, but rather, it is how many loved ones you have around you.

Toombs nails a billion for MiTek (St. Louis Business Journal)

(This is from 2012, but I saw it this week, and I found it interesting)

As important as the Berkshire purchase was, even more critical to MiTek’s growth was a seed planted in 1990. That’s when the company, at the recommendation of Dave McQuinn, a young MiTek software developer, bought a new software called Microsoft Windows and became an early beta site. [...] With MiTek’s proprietary software, called Sapphire and developed at a cost of more than $100 million, builders who work with MiTek’s customers get three-dimensional computerized structural drawings that detail every part - all MiTek parts, of course - needed to build a structure at the minimum cost. “We sell them everything except the lumber, delivery trucks and forklifts,” Manenti said. [...] Software as sophisticated as Sapphire provides what Buffett calls a moat, a protection against potential competitors. “I don’t care how much you spend on software. You can’t do it in a year,” said McQuinn, 57, now the company’s vice president of software development. “Software takes time, and we have a 10-year head start. We have 80 engineers adding code to this software right now.” Currently MiTek is putting the software into mobile technology.

BNSF Sees Bakken-Area Rail Tie-Up Lasting Until Year-End (Bloomberg)

BNSF Railway Co., the carrier owned by Warren Buffett’s Berkshire Hathaway Inc., will need the rest of 2014 to untangle train tie-ups in the corridor that serves North Dakota’s Bakken shale region. A system-wide traffic jam, caused by surging grain and crude-oil volumes coupled with harsh weather, is being resolved more quickly on the southern lines linking Chicago and Los Angeles, Chief Executive Officer Carl Ice said yesterday [...] Ice’s forecast underscored the scope of the recovery effort for U.S. railroads after winter storms and rising cargo shipments disrupted operations. BNSF sent 300 additional crew members to its northern region and plans to add 500 locomotives and 5,000 railcars this year to help ease the snarls, Ice said.

Warren Buffett-investee Lubrizol to set up $50 mn CPVC compounding plant in Gujarat (Business Standard)

In what will be Warren Buffett's first investment in Gujarat [India], the Lubrizol Corporation, a wholly owned subsidiary of Buffett's Berkshire Hathaway Inc. on Thursday announced setting up of a chlorinated polyvinyl chloride (CPVC) compounding plant in Dahej. To be set up at an investment of over $ 50 million (Rs 300 crore roughly), the upcoming plant is part of the company's previously announced $400 million global expansion of its resin and compounding manufacturing capacity. What's more, according to senior Lubrizol officials, the company is also exploring possibilities of setting up a CPVC resin manufacturing plant in India. "Many of the raw materials required for Lubrizol's specialty chemical product portfolio are produced in GIDC. Hence, Dahej makes sense due to raw material availability and proximity to South Asia, the Middle East and East Africa markets. [...]" said Eric Schnur, president of Lubrizol Advanced Materials and corporate vice president of Lubrizol Corporation.

Berkshire Hathaway Company Providing Private Jets to Chinese Market (Global Herald)

The business structure of Chinese companies is never simple. China generally demands that foreign companies do business by setting up joint ventures with domestic companies.

A new Berkshire Hathaway company, NetJets, is making the final preparations to launch a private jet service in China. The company has announced that it is awaiting final government approval for an operating certificate, which is expected to be granted in mid-2014. [...] NetJets Business Aviation Limited is part of a joint venture with NetJets Inc.; Hony Jinsi Investment Management (Beijing) Ltd, a subsidiary of Hony Capital, a leading private equity firm of China; and Fung Investments, part of the private investment arm of the families of Dr. Victor Fung and Dr. William Fung, the controlling shareholders of the Li & Fung group of companies.

Lessons From Rebranding a Berkshire Hathaway Consumer Business (Bloomberg Businessweek)

Companies spend an enormous amount of time and money creating a new brand, but when it comes time to launch, they often miss deadlines, communicate poorly with everyone involved, and fail to coordinate the multitude of moving parts. Opportunities are lost to delay, and worse, the company’s image is tarnished. [...] That was the challenge creating Berkshire Hathaway HomeServices, a new real estate franchise formed when Berkshire Hathaway’s real estate affiliate acquired a majority interest in the Prudential Real Estate network. The Prudential affiliates were free to join the new organization or go elsewhere when their existing contracts expired. In addition, we were acutely aware that poor execution might tarnish the Berkshire Hathaway name, which the company has rarely conferred on consumer businesses.

Berkshire Hathaway sees 38.6% growth in excess and surplus lines in 2013 (Business Insurance)

Berkshire Hathaway Inc.'s 2013 U.S. excess and surplus lines premiums grew by 38.6% over 2012 to $560.9 million, according to an analysis released by financial information firm SNL Financial L.C. on Monday. Charlottesville, Va.-based SNL said in its report that Berkshire's premium growth represents the largest percentage growth of the top 30 E&S insurers, moving it up five spaces in its ranking to become the 13th-largest E&S writer in the country, and was “well above” the 7.6% increase for the U.S. property/casualty industry as a whole.

Gov. Perry, Warren Buffett attend Katy GEICO ribbon-cutting; 357 new employees added (The Rancher)

Katy is a western suburb of Houston, TX.

Along with Texas Gov. Rick Perry and Berkshire Hathaway CEO Warren Buffett, GEICO announced Wednesday, April 3, that its Katy claims office has already added 357 new employees towards the goal of 1,000 jobs by 2017. The count is very close to meeting GEICO Chairman Tony Nicely’s 2015 goal of 400 associates.

Buffett Will Steer Investors to Airbnb to Avoid Price-Gouging by Omaha Hotels (WSJ MoneyBeat)

The billionaire investor is planning to mention the website at Berkshire Hathaway Inc.BRKB +0.39%’s upcoming annual shareholders’ meeting on May 3 as a low-cost alternative for shareholders who don’t want to pay the jacked-up rates that Omaha hotels charge while the gathering is taking place every year. [...] According to a recent article in the Berkshire-owned Omaha World-Herald, Mr. Buffett even considered a suggestion by some shareholders to move the meeting to Dallas, a bigger city. However, he was reluctant to leave his beloved Omaha. Instead, he has assigned his financial assistant Tracy Britt Cool to liaise with Airbnb.

Berkshire to Celebrate Cinco de Mayo With Fiesta Ducks (Bloomberg)

Berkshire Hathaway Inc. will sell rubber ducks of Chairman Warren Buffett and Vice Chairman Charles Munger wearing Mexican-themed outfits at the company’s annual meeting, which falls two days before Cinco de Mayo. The “fiesta ducks” sport sombreros, multicolored ponchos and -- in Buffett’s case -- a maraca, according to an advertisement in the visitor’s guide to the May 3 event, which will be held at the CenturyLink Center in Omaha, Nebraska. The souvenirs will be sold by Berkshire’s Oriental Trading party-supply business for $5 a pair. Last year, the unit sold rubber ducks of the executives in business suits.

Not going to the annual meeting? You can buy last year's Buffett & Munger business suit ducks on Oriental Trading's website. $3 for the ducks, but $7 for the shipping? Bah. Amazon Prime has spoiled me.

Oriental Trading will also be selling a Berkshire Hathaway-themed Quirkle game at the annual meeting, but that doesn't make as good of a headline.

Berkshire News Briefs - 3/25/14

Buffett's Berkshire gets its first TV station (CNBC)

For the first time, Warren Buffett's Berkshire Hathaway will directly own a television station. Under terms of an agreement in principle announced Wednesday, Berkshire will get ABC-affiliate WPLG in Miami from Graham Holdings. Graham holds the assets that remained after the Washington Post Co. sold its namesake newspaper to Amazon chief Jeff Bezos for $250 million last August. In the new deal, Graham would swap the station, some Berkshire shares it owns and some cash in exchange for roughly 1.6 million Graham shares now held by Berkshire. [...] The trade would leave Berkshire with just about 100,000 shares.

Media General to buy LIN in US$2.6b broadcast deal (NewsAsia)

US broadcaster Media General said on Friday it will buy LIN Media in a US$2.6 billion deal that creates the nation's second-largest television broadcasting company and a digital media powerhouse. The merged company will own and operate or service 74 television stations across 46 markets, and serve some 26.5 million households, or 23 percent of the US market, Media General said in a statement. [...] Media General, partly owned by tycoon Warren Buffett's Berkshire Hathaway, will form a new holding company that will be named Media General.

Warren Buffett's Warrants Shine in Media General Deal (The Street)

As Media General works to merge with LIN Media, forming the nation's second largest pure-play TV broadcasting company, Berkshire Hathaway continues to make money off of a newspaper deal it cut with Media General in 2012. In May 2012, Berkshire Hathaway bought 63 newspapers from Media General for $142 million in cash and agreed to provide the nationwide TV broadcaster with a $400 million term loan and a $45 million revolving credit line, as the company worked to repair its balance sheet. As part of the newspaper purchase and its loan to Media General, Berkshire also received penny warrants for approximately 4.6 million of Media General's Class A shares, about 20% of its outstanding stock at the time. Berkshire's loans, which carried an interest rate of 10.5%, and its warrants, quickly paid off.

Buffett’s BNSF Leads Locomotive Surge to Ease Railroad Cargo Jam (Bloomberg)

BNSF Railway Co., owned by Warren Buffett’s Berkshire Hathaway Inc., is leading an effort by U.S. railroads to add hundreds of locomotives to ease a cargo jam spurred by bad weather and surging crude shipments. BNSF increased engines by 250 in the last two months and will have another 125 new ones on the tracks in the next two months, the company said. [...] The congestion started with BNSF before the bad weather because of equipment shortages and increasing cargo, then worsened as the snowstorms swept in, said Jason Seidl, an analyst with Cowen & Co. “A lot of business came their way and they sort of got behind the eight ball,” he said. “Then the weather hit and the rest is history as they say.”

Buffett’s Hathaway Compensation Rises to $485,606 (Claims Journal)

Well, OK, I guess he's earned a small raise.

Warren Buffett’s compensation from Berkshire Hathaway Inc. rose 15 percent last year to $485,606, although the billionaire’s salary remained $100,000. The increase came in “other compensation,” which includes company-paid costs for Buffett’s personal and home security. As usual, Buffett reimbursed Berkshire $50,000 for personal costs such as postage and phone calls.

Will This Company Soon Be Warren Buffett's Biggest Holding? (Fool)

Believe it or not, Bank of America could soon become the single largest holding of Warren Buffett's Berkshire Hathaway. Shocking, I know, but the math is really quite simple. Two and a half years ago, Buffett invested $5 billion in Bank of America. In exchange, Berkshire received a corresponding amount of preferred stock that pays a 6% dividend, and warrants to buy 700 million shares of the bank's common stock at an exercise price of $7.14 per share. The warrants expire in September of 2021. At today's price of roughly $17.90, Berkshire has already more than doubled its initial investment -- and that excludes the preferred stake. The common-stock position has been so lucrative, in fact, that it's become, in effect, Berkshire's fifth largest equity holding.

Berkshire Hathaway HomeServices Named ‘Real Estate Agency Brand of the Year’ in 2014 Harris Poll (Business Wire)

Berkshire Hathaway HomeServices, the new real estate brokerage network operated by HSF Affiliates LLC, today announced it was named “Real Estate Agency Brand of the Year” in the 26th annual Harris Poll EquiTrend study. Berkshire Hathaway HomeServices received the highest ranking in the Real Estate Agency category based on consumers’ perception of its brand familiarity, quality and purchasing consideration, among other qualifying elements. The study was based on opinions of more than 40,000 U.S. consumers surveyed online earlier this year.

Buffett Wins NCAA Billion-Dollar Hoops Bet as Brackets Go Bust (Bloomberg)

It took less than two full days of play for Warren Buffett to win his bet that no entrant in a Quicken Loans Inc. contest would predict the winner of each game in the three-week-long National Collegiate Athletic Association men’s basketball tournament. [...] Two upsets -- Dayton’s defeat of Ohio State two days ago, and Mercer’s win yesterday against Duke -- wiped out 99 percent of the entries. When Memphis defeated George Washington last night, the last of the perfect brackets was busted.

In preparing the news briefs post, I found this interesting two-part story on Seeking Alpha about the corporate structure of Berkshire Hathaway. I thought it was more nuts-and-bolts and not general interest news, so I dropped it down to the bottom; if you don't care how the sausage is made, you're welcome to skip over this post.

On The Structure Of Berkshire Hathaway, Part 1 (Seeking Alpha)

Berkshire Hathaway is a unique company. You have a property-casualty insurance giant owning many businesses directly through insurance subsidiaries, including huge businesses like a Class 1 Railroad - BNSF. Yes, National Indemnity owns BNSF in entire, and many other businesses as well. I thought the pre-crisis organization chart of AIG was complex - because of the many industries that it covers, BRK is far more complex.

On The Structure Of Berkshire Hathaway, Part 2: The Harney Investment Trust (Seeking Alpha)

In Omaha, there is Farnam Street. Among value investors, it is well-known, because the small main office of Berkshire Hathaway is located there. Less well known is Harney Street, but from an insurance standpoint it is important, because Berkshire Hathaway's largest insurance subsidiary, National Indemnity, is located there. One of the major assets of National Indemnity is the Harney Investment Trust, of which National Indemnity is the sole beneficiary. [...] Now, if you read through BRK's filings to the SEC, you won't find many mentions of the Harney Investment Trust. You have to read the insurance regulatory documents to find it, and even if you do that, you will still be puzzled.

Berkshire News Briefs - 3/10/14

Several members of the Berkshire Hathaway Leadership team went on CNBC Monday morning. Warren Buffett, Ted Weschler, Todd Combs, and Tracy Britt Cool were all there. CNBC posted the transcript in this PDF. There's some good info in there, especially in the second half when they start talking to Ted and Todd. I like this bit, in reference to my reading backlog...

BECKY QUICK: [...] We are here in Omaha because-- Berkshire Hathaway's annual letter-- Warren Buffett's annual letter to the shareholders went out on Saturday morning. And, Warren, we've spent some time digesting-- a large annual letter.

WARREN BUFFETT: I get paid by the word.

25 Must-Read Quotes from Warren Buffett's Letter to Shareholders (Fool)

"Forming macro opinions or listening to the macro or market predictions of others is a waste of time. Indeed, it is dangerous because it may blur your vision of the facts that are truly important. (When I hear TV commentators glibly opine on what the market will do next, I am reminded of Mickey Mantle's scathing comment: "You don't know how easy this game is until you get into that broadcasting booth.")

Berkshire Hathaway buys AA Party Rentals (The Herald of Everett WA)

I do so love these little tuck-in acquisitions.

AA Party Rentals with locations in Mountlake Terrace and Tacoma was acquired by nationwide events company CORT in a deal anounced Thursday. AA Party Rentals has been providing rental equipment and services in the greater Seattle and Tacoma markets for more than 40 years. [...] CORT is a Berkshire Hathaway company.

Buffett’s Berkshire Reaches $300 Billion Market Cap (WSJ)

Warren Buffett didn’t grow Berkshire Hathaway Inc.’s net worth faster than gains in the S&P 500 index over the last five years, but the gigantic conglomerate recently crossed another milestone: passing the $300 billion mark in market capitalization for the first time. [...] Berkshire is already among the top 10 largest U.S. companies by market capitalization, and in recent years, has made the top-five list often. At $300 billion, its position among America’s most-valuable companies doesn’t change much. On Friday afternoon, Apple topped the list with $475 billion; followed by Google with $409 billion, Exxon Mobil close on its heels with $405 billion; Microsoft at fourth place, and ahead of Berkshire, at $316 billion.

The Best Warren Buffett Coverage You Haven't Read (Fool)

A link to more links!

For value investing disciples around the world, the annual release of the Berkshire Hathaway Letter to Shareholders is an interesting mix of fanaticism, jubilation, conversation, and conjecture. For those of us who just can't get enough, here are three reads you probably haven't seen that are interesting and uniquely insightful into the Oracle of Omaha's mind.

Here's Why Warren Buffett Is Betting Big on Renewable Energy (Fool)

Buffett's success is also his ability to acknowledge that sometimes things do change and that new competitive advantages can and must be built. MidAmerican Energy has been doing just that for the past nine years, working with companies like Siemens, SunPower, and Vestas to add renewable energy to its mix in a big way. Renewables are becoming a huge -- and growing -- part of Berkshire's competitive advantage at MidAmerican.

Brokerages to Join the New Real Estate Network During 2014's Second and Third Quarters (St. Louis Post-Dispatch)

Berkshire Hathaway HomeServices, the new real estate brokerage network operated by HSF Affiliates LLC, today announced the signing of 22 additional affiliates to the network. Several signees come from Prudential Real Estate’s Gibraltar Circle of Top 50 brokerages based on overall production. Berkshire Hathaway HomeServices now accounts for more than 26,000 agents and 700 offices in 33 states since it began transitioning affiliates in September.

Canada Tomato Law Saves Former Heinz Plant From Buffett Closing (MoneyNews)

A bit unfair to call this a "Buffett Closing"...

Canada’s insistence that tomato juice be extracted from “sound, ripe, whole” tomatoes instead of paste — a higher standard than in the U.S. — has partially saved an H.J. Heinz Co. plant marked for closing by Warren Buffett’s private-equity partner. A group of Ontario investors announced last week they plan to run the century-old plant and take over producing and distributing tomato juice for Heinz in the Canadian market. The move spared 250 of the 740 workers slated to lose their jobs in Leamington, Ontario, widely known as the tomato capital of Canada.

Berkshire spends $77 million to add to DaVita stake (NASDAQ)

Berkshire Hathaway is still buying up shares of DaVita. Most recently, Warren Buffett's firm bought 1,159,858 shares of the company's common stock on Feb. 24 for $66.58 per share. All told, Berkshire paid $77,679,440 to increase its holdings by 3.2%.

Berkshire Energy & Subsidiary News - 1/7/14

Berkshire Stakes Name on Realty Business Buffett Barely Noticed (Bloomberg)

Berkshire Hathaway Inc.’s foray into the home-brokerage arena 14 years ago was almost an afterthought. Today, Warren Buffett’s company is staking its name on the business. [...] While Buffett has invested for decades in companies with strong consumer brands -- from Geico to Dairy Queen -- few of his subsidiaries have adopted the name of his holding company. The brokerage will test whether the “Berkshire” brand has broad appeal and can be used without tarnishing a reputation for financial strength and integrity. “It’s always been used as an investment brand,” said Stefan Swanepoel, a consultant and author on real estate trends. “The question is: Can you position it as a consumer brand?”

Candy Cash Flow: The Secrets to See’s Candy (Guru Focus)

Charles A. See, a salesman from Ontario, opened the first See’s Candy shop in Pasadena, Calif. in 1921, with his mother Mary See. Exactly 50 years later Warren Buffett picked up his first See’s candy and gave it a try. After hearing about See's from his West Coast colleague Charlie Munger (in 1971), an eternal synergy blossomed with a blue chip buy-out of See’s Candy the following year. [...] See’s Candy is a textbook example of a magnificent business with a continually widening moat, characterized as above average return on assets, incredible return on invested capital, pricing power and a negative operating cycle. These effects are due to superb management (See’s family, Chuck Huggins and now Brad Kinstler), high customer captivity, low to non-existent capex (and maintenance capex) and proficiencies in industry jousting (game theory/prisoners dilemma).

MiTek Acquires Truss Industry Production Systems, 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 Truss Industry Production Systems, Inc. (TIPS), the maker of the Wizard PDS system. The Wizard PDS system is a leading automated jigging system sold to component fabricators across North America.

NetJets loses IntelliJet trademark spat with Florida aircraft leasing company (Columbus Business Report)

NetJets sued another company over the using the name "IntelliJet", and the judge ended up invalidating NetJets's trademark. Oops.

NetJets Inc. has to surrender a trademark for its IntelliJet software after losing a dispute with a Florida aircraft brokerage and leasing company using the same name. U.S. District Court Judge Gregory Frost ruled Columbus-based NetJets must abandon the trademark for its aircraft-management software because the Columbus private jet company’s use does not meet the standards required of a trademark. Namely, the IntelliJet software is used internally, as a vehicle through which NetJets provides services. [...] Joe Dreitler of Dreitler True LLC in Columbus, who represented Jacksonville, Fla.-based IntelliJet Group LLC, said NetJets and parent company Berkshire Hathaway Inc. were trying to throw their weight around by suing IntelliJet for trademark infringement in January 2012. IntelliJet has operated under that name since 2005.

Berkshire Hathaway Specialty Insurance Adds Primary Casualty Construction Capabilities (Business Wire)

Berkshire Hathaway Specialty Insurance (BHSI) today announced that it is expanding its construction casualty capabilities to include primary casualty insurance. The company now offers primary general liability, excess and umbrella coverage for wrap-ups, project-specific and practice policies. [...] Recently underwritten accounts range from new bridge, high speed rail and stadium projects, to a rolling wrap-up for a general contractor and a practice policy for a pipeline contractor.

Warren Buffett's $1.4 Billion Arbitrage on Phillips 66 (Fool)

Berkshire Hathaway CEO Warren Buffett likes to cultivate the image of a down-to-earth businessman, but when it comes to deal-making, he can get pretty creative. In a deal announced after the market close on Monday, Berkshire is acquiring Phillips Specialty Products, or PSPI, from downstream energy company Phillips 66 for roughly $1.4 billion. But here's the kicker: Buffett will be paying for the acquisition with shares of Phillips 66 from Berkshire's stock portfolio! Why structure the deal that way?

Warren Buffett's Energy Companies Stand Out Among the Crowd (Fool)

These kinds of moves are what separate Warren Buffet from the rest of us, and it isn't the only move he's made in the energy space. In the slideshow below, we go over all of Berkshire Hathaway's energy investments and why they fit the Warren Buffet style of investing.

Did Warren Buffett Just Tip His Hand About His Next Elephant Hunt? (Fool)

Given his fondness for the company, it is possible that Buffett might want to buy more of Phillips 66's energy transportation portfolio. However, Buffett typically looks for elephant-sized acquisitions. A company, say, about the size of Phillips 66, which at more than $45 billion in market capitalization would be quite the elephant. However, it's a company that would fit in well with Buffett's other capital-intensive holdings, including MidAmerican Energy Holdings and BNSF.

Will Berkshire's Bets on Wind Power Pay Off? (Fool)

Berkshire Hathaway's MidAmerican Energy subsidiary just bought over 1 gigawatt (GW) of wind turbine capacity from Siemens. Construction sites across Iowa are linked to MidAmerican's expansion and reconductoring of its transmission system. MidAmerican Energy bought 448 turbines for an undisclosed price. Current installed capacity cost for wind turbines is about $2,000 per kilowatt (kW.) The total price tag could exceed $2 billion, and this is reputedly the largest wind turbine order to date. [...] Everyone seems to gain from this deal. Iowans can get enough power to service the equivalent of over 300,000 households at about $0.05 per kilowatt-hour (kWh.) New York City residents pay over $0.20 per kWh.

Berkshire News Briefs - 12/13/13

Rabbit Hunting With Warren Buffett (Fool)

In his 2010 annual letter to shareholders, Berkshire Hathaway Chairman and CEO Warren Buffett used the metaphor of his company's cash as an "elephant gun" to be used in his hunt for big companies to purchase. Ever since then, the news media has fixated on Berkshire Hathaway's hunt to bag that elephant to fuel its future growth. After all, how can an enormous company the size of Berkshire Hathaway grow even larger without swallowing up increasingly larger subsidiaries? [...] While the world watches and waits for that elephant to come along, though, Berkshire Hathaway has been quietly growing another way: rabbit hunting. Rather than using the metaphorical elephant gun to bring down the biggest game of all, the subsidiaries Berkshire Hathaway already owns have been quietly hunting their own small targets. Taken individually, most of these moves barely made the news outside of a company press release. But looking at all of the little moves together, you can see from the pattern that Berkshire Hathaway is growing just fine without any elephants.

BNSF CEO Rose changes roles, renews Buffett succession talk (Reuters)

Berkshire Hathaway Inc's BNSF Railway Co moved Chief Executive Matthew Rose to an executive chairman role, renewing speculation that he may be in line to replace Warren Buffett at Berkshire's helm. As executive chairman, Rose, 54, will work on activities including organizational planning, market positioning and public policy at BNSF over the next decade, the company said on Wednesday. Carl Ice, 57, will replace Rose as chief executive at the nation's largest railroad, beginning January 1. Ice has been at the railroad for 34 years, and has been president of BNSF since November 2010.

Berkshire Hathaway HomeServices Grows Again with 12 Affiliate Signees (MarketWatch / BusinessWire)

Berkshire Hathaway HomeServices, the new real estate brokerage network operated by HSF Affiliates LLC, today announced the signing of 12 more affiliates for the network. [...] These signings bring to 502 the number of offices that have transitioned to or signed with the brand since July, and include nearly 19,000 agents in 24 states. Many more signings are on the way, said Earl Lee, CEO of HSF Affiliates LLC.

Related:

Warren Buffett’s new franchise brand, Berkshire Hathaway HomeServices, grows to 51 firms (Inman)

Warren Buffett’s new real estate franchise brand, Berkshire Hathaway HomeServices, will convert 12 more Prudential Real Estate-affiliated brokerages, bringing the total number of firms committed to the 1-year-old network to 51. [...] The 12 new firms, which grow the new franchise network to 502 offices and 19,000 agents in 24 states, will transition to the new brand by the middle of 2014. [...] HomeServices of America created the new brand when it took a majority stake in the Prudential Real Estate and Real Living brands from Brookfield Asset Management in October 2012. It will eventually replace the Prudential Real Estate brand, which is slated to disappear in the 2020s as a condition of Prudential Financial Inc.’s sale of its real estate franchising business to Brookfield Asset Management in 2011. [...] So far, only Prudential-affiliated firms have committed to Buffett’s new brand.

Brokerages converted to the Berkshire Hathaway HomeServices brand and having their press releases turn up in my BRK news search this week include Middle Tennessee, Nebraska, Atlanta, GA, Orlando, FL, Greenville, SC, and Wellesley, MA.

Buffett's Berkshire Buys More DaVita (NASDAQ)

Warren Buffett 's company, Berkshire Hathaway, bought 1,314,170 additional shares of DaVita HealthCare Partners this week. The transaction, reported Dec. 9, represents a 6.77% increase to the existing holding. After the buy, Berkshire's DaVita stake is sized at 36,461,294 shares, raising its ownership to about 17.14%. [...] The two companies have agreed that Berkshire will not acquire more than 25% of DaVita without DaVita's approval.

Warren Buffett’s Berkshire Hathaway acquires Hartford UK variable annuity business (Life Insurance and Pensions)

This story came up last summer, and the deal is just now finalizing.

Columbia Insurance Company, a Berkshire Hathaway firm, has purchased Hartford Life International Limited (HLIL) in a transaction valued at approximately $285m. Property and casualty insurance provider Hartford originally signed an agreement with Columbia Insurance in June this year, to divest its UK variable annuity business, as part of its strategy to streamline its operations. HLIL's sole asset is its subsidiary, Hartford Life Limited (HLL), a Dublin-based company that sold variable annuities in the UK from 2005 to 2009. As of 30 November 2013, HLL had $1.7bn in assets under management.

Berkshire Estimates Were Cut For Bad Reasons. Expect A Good Q4 (Seeking Alpha)

After strongly outperforming the S&P 500 through July, Berkshire treaded water for a few months but then began to notably underperform the SP500 since Berkshire announced Q3 earnings on Nov 1. The culprit? Not only did Q3 earnings miss the consensus estimate, but, even worse, that surprise caused the few analysts who cover Berkshire to lower future earnings forecasts. We think that in their rush to not get fooled again, they overreacted.

Did Buffett Buy ExxonMobil Because It's More "Buffett" Than Berkshire? (Fool)

Berkshire Hathaway CEO Warren Buffett's most notable investment this past quarter, 8.8 million shares of ExxonMobil, actually started with a larger 31 million-share buy in the quarter ended June 30. Based on the Sept. 30 13F, this makes ExxonMobil Berkshire's seventh-largest stock holding, worth $3.75 billion. While that's significantly smaller than the company's holdings in Wells Fargo, Coca-Cola, IBM, and American Express -- each worth more than $10 billion -- ExxonMobil is perhaps the most "Buffett" of all the companies that Buffett has invested in over the years. Let's take a look at why.

Warren Buffett Places One Heck of Bet on Energy (Fool)

Warren Buffett made big headlines in the energy space when Berkshire Hathaway publicly disclosed that it had accumulated a $3.4 billion position in ExxonMobil. This alone is a pretty significant bet on the future of oil and gas. When you look at some of Buffett's other energy holdings, though, it points to a very specific investment strategy: Canadian oil sands. Let's take a look at Buffett's energy holdings and what makes all of them work.

Berkshire Hathaway Is Undervalued By 15% (Seeking Alpha)

Berkshire Hathaway is unlikely to repeat the 19.8% returns it enjoyed from 1964-2011 due to its size and because it has already bought up many of the most desirable investment opportunities in the marketplace. However, Berkshire should continue to generate solid growth and performance due to its mix of high quality businesses that it owns as well as its well-regarded portfolio of marketable securities. [...] Berkshire Hathaway's share price is undervalued by 15% relative to its fair intrinsic value and its business units continue to generate steady profit growth.

Berkshire Hathaway and Warren Buffett's 2013 Year in Review (Fool)

Berkshire Hathaway has had a relatively eventful 2013, with a major acquisition, a few significant stock purchases, and one question that still lingers.

Finally...

Warren Buffett held a Q&A session with MBA Students from 8 universities last month, and a professor from the University of Maryland Robert E. Smith Business School in attendance took copious, detailed notes:

Buffett talks about how he writes the annual letter to shareholders (2013's is already done except for the final numbers, watch for it to be published on February 28). He talks about the Goldman Sachs and GE warrant deals from 2008. He talks about how his political views were formed. Moats, negotiations, women's equality, assessing managers, influences, career advice.

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 News Briefs - 9/25/13

Berkshire Hathaway Enters Detroit Bankruptcy Case (Bond Buyer)

Warren Buffett's bond insurance firm made its first appearance in the Detroit bankruptcy case with a brief court paper filed Saturday. [...] Attorneys for Buffet's Berkshire Hathaway Assurance Corp. on Saturday filed a court notice of appearance and request for service. [...] BHAC has about $400 million in exposure to Detroit's debt, mostly in sewer revenue bonds. All the BHAC insurance is a wrap on top of an original guarantee from Financial Guaranty Insurance Co. In addition to $384 million of sewer debt, the insurer also wraps a piece of the city's defaulted pension certificates, though the amount is uncertain.

Colorado Properties joins Berkshire Hathaway HomeServices (Vail Daily)

Berkshire Hathaway HomeServices, the new real estate brokerage network operated by HSF Affiliates LLC, announced on Monday that Colorado Properties is the network’s first resort-brokerage signee. Colorado Properties will begin operating as Berkshire Hathaway HomeServices Colorado Properties in October. [...] Colorado Properties, a full-service brokerage founded in 1971, operates six offices with 85 sales professionals and one of the area’s largest vacation rental companies. The company ranks among Prudential Real Estate’s Top 50 companies nationwide and is a top firm in the Vail Valley.

Prudential California Realty Becomes Berkshire Hathaway HomeServices California Properties (San Diego Business Journal)

Prudential California Realty became the first company to operate as a member of the new Berkshire Hathaway HomeServices network, and was renamed Berkshire Hathaway HomeServices California Properties, the company said. [...] Berkshire Hathaway HomeSevices California Properties has about 3,200 sales associates in 62 offices in Southern California and the Central Coast. It is one of the top five brokerages in the nation, the company said. Last year its agents closed nearly $11 billion in sales and more than 14,000 transactions.

Air Force Contracts Worth $97 Million Awarded Monday (Fool)

$19.9 million: going to Berkshire Hathaway subsidiary FlightSafety Services Corp to exercise a seventh option year on a contract to support Aircrew Training Systems for the McDonnell Douglas KC-10 aerial refueling tanker. FlightSafety will be both supplying and supporting all KC-10 training devices used in the Air Force's Operation and Training System Support Center through Sept. 30, 2014.

Rail Traffic Reaches Record Level (Seeking Alpha)

Total N. American rail traffic last week leaped to the highest levels in the 5 years I began tracking the series here. At 733k carloads it passed the previous highs despite both oil/chemical shipments and coal shipments falling slightly. Strength was seen in intermodal, auto, metals and stone products. The metal and stone product categories sit at or just below multi year record levels. [...] As for the carriers, Burlington Northern [merged with Berkshire Hathaway and Canadian National Railway Company saw their traffic also reach the highest level since I began tracking the series.

Buffett’s 9% Heinz Dividend Means 3G Cutting Jobs, Mini-Fridges (Bloomberg)

Since taking over at the Pittsburgh-based ketchup maker, Hees eliminated hundreds of jobs, grounded corporate jets and pulled the plug on mini-fridges at the office. Savings will help pay down $12.6 billion in borrowing supporting the deal. [...] The management turnover contrasts with Berkshire’s normal approach. When Buffett buys a company, he typically leaves senior employees in place and commits to holding the business forever. The practice makes Berkshire a buyer of choice for many sellers, he’s said.

Warren Buffett Offering Options For MN’s Famous Dairy Queen Manager (WCCO 4 Minnesota)

Joey Prusak saw a woman steal $20 from a blind customer at the Dairy Queen where he works. So he gave the guy his own cash. [...] “Warren Buffet called me this morning and we talked for about 10 minutes,” Prusak said. One of the world’s richest people was calling over a $20 bill. “I go, ‘What I would like to know is why you’re calling here?’ He goes ‘I just wanted to call and thank you for all that you did. It means a lot to me,’” Prusak said. Buffet’s company owns Dairy Queen, and Buffett said he’s planning future talks with Prusak.

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 - 8/26/13

Here's What Berkshire Hathaway Bought Last Quarter (Fool) http://www.fool.com/investing/general/2013/08/15/heres-what-...

So what jumps out right away from Berkshire's latest buys? First, the company opened two brand-new positions, including one in satellite TV provider DISH Network, and another in Suncor Energy, Canada's largest oil and natural gas producer. While the DISH position is relatively small, representing only 0.03% of Berkshire's total portfolio at the end of the second quarter, the half a billion-dollar bet on Suncor is sure to raise some eyebrows, worth nearly $595 million at its recent price of $33.44 per share. What's more, Berkshire made some other big additions to existing positions, including a 60% boost in its General Motors stake to 40 million shares, currently worth more than $1.38 billion. [...] "Confidential information has been omitted from the public Form 13F report and filed separately with the U.S. Securities and Exchange Commission." Translation? Berkshire probably already made an even bigger buy that the public doesn't know about... yet.

MiTek Acquires Benson Industries, LLC (Building Online)

MiTek Industries, 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 Benson Industries, LLC. Benson is the global leader in the design, pre-fabrication and installation of custom unitized curtain wall systems for high-end commercial, hotel, residential, governmental, and institutional buildings worldwide. MiTek is a subsidiary of Warren Buffett's Berkshire Hathaway Inc. "The acquisition of Benson extends MiTek's product offering into the global high-rise commercial building construction market. Benson is a terrific addition to the MiTek family," stated Tom Manenti, Chairman and CEO of MiTek.

Buffett invests in Suncor (Morning Ledger)

In a sense, Buffett may have thrown himself into a hot environmental debate. The prevention of oil sands expansion is one of the most significant reasons that environmentalists are urging President Barack Obama to reject the Keystone XL pipeline, which is a controversial project valued at $5.3 billion that is set to carry oil from Alberta, Canada, down to the Gulf Coast. [...] Now a major player in the debate, Buffett and his investment are being criticized. Aside from the politics, Buffett bought the stock to help ensure a steady supply of oil for his BNSF railroad to transport. [...] Suncor is considered to be well run and owns large tracts of oil sands resources from which the oil production, despite the objections of the environmental groups, will continue to grow.

Buffett's railway line to invest $300m in Plains states oil haulage expansion (Stock House)

BNSF Railway Co., a transport company owned by Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A, Stock Forum), said it was investing more than $300 million to improve railway systems in the northern Plains states, which host major oil deposits. The rail company said it plans to invest $115 million on rail projects in Montana this year. This includes the replacement of nearly 100 miles of rail. A $220 million investment in North Dakota finances the replacement of about 315 miles of rail this year.

Burlington Northern Issues $1.5 Billion of Bonds in Two Parts (Bloomberg)

Burlington Northern Santa Fe LLC issued $1.5 billion in a two-part bond sale, its first offering in five months. The railroad that Warren Buffett’s Berkshire Hathaway Inc. bought in 2010 sold $800 million of 3.85 percent, 10-year notes that yield 117 basis points more than similar-maturity Treasuries and $700 million of 5.15 percent, 30-year securities at 140 basis points more than benchmarks, according to data compiled by Bloomberg.

Union sues BNSF over contract on short line (Omaha World-Herald)

A labor union representing railroad workers has sued BNSF Railway, saying the unit of Omaha's Berkshire Hathaway Inc. is violating a collective bargaining agreement covering a handful of employees on a Nebraska short line. [...] The suit says BNSF is not honoring the union contract on a Nebraska short rail line that runs from Iowa Ferry, near South Sioux City, to O'Neill, about 100 miles away. Such lines typically employ fewer than a couple of dozen workers.

Lubrizol opens additives plant in China (Trade Only Today)

Lubrizol Corp. is opening an additives manufacturing facility in Zhuhai, Guangdong, China, the company’s latest investment in China. Construction on the 400,000-square-meter (1.41-million-square-foot) site began in October 2010. The plant will offer select additive component manufacturing and additive package blending. [...] The site also includes a Zhuhai research, development and testing lab in support of Lubrizol's engine oils, driveline, industrial and fuel additive businesses and is part of the company's global technical network of labs and experts. The lab will support field testing in local vehicles under local conditions in China, generating performance data in support of Lubrizol customers.

An uplifting celebration of Chinese firm's new plant (Omaha World-Herald)

BYD Inc. knows how to stage a ribbon-cutting. The Chinese electric vehicle company, which is 10 percent owned by Omaha conglomerate Berkshire Hathaway Inc., recently celebrated opening its battery-powered forklift assembly plant in Shaoguan Industrial Park, in Guangdong province north of Hong Kong. [...] Wang said BYD's New Energy forklift — the world's first to use iron batteries — are the future for industrial forklifts, as well as being emission-free and fast-charging. When the batteries wear out, they can be converted to energy storage, BYD said, without the heavy-metal waste of lead-acid batteries.

Prudential Fox & Roach sold to Warren Buffett company (Montgomery News)

Prudential Fox & Roach, Realtors, and its subsidiary, The Trident Group, have been acquired by HomeServices of America Inc., an affiliate of Warren Buffett’s Berkshire Hathaway. [...] Headquartered in Devon, Prudential Fox & Roach, is the fifth largest provider of brokerage and related services in the United States, according to a release announcing the acquisition. The Trident Group comprises financial services companies including Trident Mortgage Co., Trident Insurance and Trident Land Transfer Co. Prudential Fox & Roach is the largest Realtor in the tri-state Pennsylvania, New Jersey and Delaware region and the largest single market residential real estate brokerage in the U.S. with more than 4,000 sales associates in 62 offices.

Buffett Tops Reese Witherspoon as Charity Auction Draw (Bloomberg)

Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc., drew a top offer of $118,000 for an all-you-can-eat tour of a See’s Candies factory, with less than 3 hours left in the charity auction. [...] Buffett is among celebrities who are supporting auctions to benefit Communities in Schools of Los Angeles, a high school dropout-prevention program. The top offer for lunch with actress Reese Witherspoon was $6,000.

Berkshire News Briefs - 8/10/13

TTI acquires assets of NPCS Autotronics (evertiq)

TTI, Inc. an indirect, wholly owned subsidiary of Berkshire Hathaway, acquired the assets of NPCS Autotronics Co. Ltd. Based in Shanghai, China, NPCS Autotronics is a specialty distributor of connector products used in the transportation market segment. The company is an official distributor of Delphi Connection Systems.

Warren Buffett could soon own the largest energy holding company in the U.S. (Mother Nature Network)

Billionaire investor Warren Buffett sees dollar signs in Nevada. Buffett's Berkshire Hathaway has made a $10 billion offer to acquire NV Energy, Inc., a deal that would create what has been called the largest utility holding company in the U.S. [...] MidAmerican Energy Holdings already owns several large energy and utility companies, including namesake MidAmerican Energy Company, MidAmerican Renewables, PacifiCorp and Northern Natural Gas. NV Energy has two main subsidiaries, Nevada Power Company and Sierra Pacific Power Company, both of which operate under the NV brand name. The deal, if approved by regulators, would add another 2.4 million customers to Berkshire Hathaway's energy rolls.

"This Time" Is Never Different for Buffett and Berkshire Hathaway (Fool)

Friday's Wall Street Journal featured an article detailing Warren Buffett's increasingly difficult task of allocating Berkshire Hathaway's massive cash pile toward multibillion-dollar acquisitions. While many of the conglomerate's recent purchases have been small nominally, the results have been outsized and continue to add to Berkshire Hathaway's already gigantic equity base.

Berkshire Hathaway HomeServices Adds Five More Brokerage Signees (MarketWatch / Business Wire)

Berkshire Hathaway HomeServices, the new real estate brokerage network operated by HSF Affiliates LLC, today announced the signing of five additional brokerage companies for the network. The companies - Prudential Ambassador Real Estate, Omaha, NE; Prudential California Realty, Rancho Cucamonga, CA; Prudential Colorado Properties, Vail, CO; Prudential Real Estate of the Rockies, Denver, CO; and Prudential Preferred Homes (with Parkersburg Realty and Landmark REALTORS(R)), Parkersburg, WV - will begin operating as Berkshire Hathaway HomeServices affiliates later this year and in early 2014.

Berkshire Sells $1 Billion of Bonds in First Offering Since May (Bloomberg Businessweek)

Warren Buffett’s Berkshire Hathaway Inc. issued its first bonds in three months with a $1 billion, two-part offering. Berkshire’s $600 million of 0.95 percent, three-year securities priced to yield 37 basis points more than similar-maturity Treasuries and $400 million of 2 percent, five-year notes pay a relative yield of 65 basis points, according to data compiled by Bloomberg. The bonds are expected to be rated Aa2 by Moody’s Investors Service and will be used to repay debt.

Southwest Greens Launches New Bolt™ Fiber (PRWeb)

Southwest Greens International, a division of Shaw Industries, a Berkshire Hathaway company and one of the leading synthetic turf companies in North America, announced today the launch of Bolt™, its newest fiber innovation which is highlighted by a cutting-edge shape designed for increased performance and durability. [...] Engineered to handle the demands of a high-traffic sports surface, Bolt features a patent-pending, lightning bolt-shaped fiber which creates a stronger vertical axis that causes the fibers to stand upright for greater resiliency and increased durability. In fact, Bolt exceeds the most stringent industry standard for simulated wear twice over. Additionally, Bolt’s unique cross section features curved angles reflecting light for lower luster and a more natural looking lawn.

Berkshire News Briefs - 7/28/13

HomeServices Lending Announces Plans to Become Wholly-Owned Subsidiary of HomeServices of America (HomeServices Blog)

HomeServices Lending LLC, a joint venture with Wells Fargo, today announced plans to transition to become a wholly-owned subsidiary of HomeServices of America, a Berkshire Hathaway affiliate. The transition work has been underway for some time, and is expected to conclude in 2014.

Berkshire Allowed to Count BNSF Purchase Costs in Rail Rates (Bloomberg Businessweek)

Warren Buffett’s Berkshire Hathaway Inc. (A:US) can count the $8.1 billion premium it paid to acquire Burlington Northern Santa Fe Corp. in the formula used to calculate prices for some shippers, a decision that may make it harder for some rail customers to challenge their rates. The U.S. Surface Transportation Board, which regulates some rail rates, today ruled that Berkshire may count the premium from its 2009 purchase of BNSF by spreading those costs over seven years. Shippers moving products, including coal, asked the regulator to prohibit the company from counting the premium in its cost base, saying Berkshire was unfairly trying to make them reimburse its expenses in the $26.5 billion BNSF acquisition.

Why Warren Buffett's Berkshire Hathaway pulled out of India (Economic Times)

India has long been viewed as a value investor's dream: rapid growth, 1.2 billion people pining for a taste of globalisation, and underdeveloped industries ripe for turnarounds. So it surprised few when the genre's guru, Warren Buffett, placed a bet on the world's ninth-biggest economy. What did come as a surprise was last week's decision by the billionaire's Berkshire Hathaway to give up on India's insurance market after just two years. [...] Buffett isn't alone. Walmart, ArcelorMittal and Posco are pulling back on investments that they had announced with great fanfare. What's scaring foreigners away? A rampant political dysfunction that has stopped India's progress cold.

Buffett Reinsures Irish State Health Claims as Population Ages (Bloomberg Businessweek)

Warren Buffett’s Berkshire Hathaway Inc. will reinsure about 700 million euros ($923 million) in claims for Ireland’s state health insurer, which is seeking to stem losses and its burden on taxpayers as the population ages. Vhi Healthcare and Omaha, Nebraska-based Berkshire signed a deal for one year, which Vhi will seek to extend, Brighid Smyth, a spokeswoman for the Dublin-based insurer, said by phone. She declined to give terms of the agreement, which will cover half of Vhi’s 1.4 billion-euro claim book. The agreement may save Irish taxpayers as much as 90 million euros, Smyth said, as Vhi will require a smaller boost to its reserves given Berkshire’s assumption of some of the insurer’s risks.

Around the Water Cooler With Dairy Queen’s CEO (US News & World Report)

[John] Gainor, 56, started at International Dairy Queen, Inc. as the chief supply chain officer and became the CEO five years ago. He now oversees more than 6,300 restaurants worldwide, with more than 4,500 in the United States. Since Dairy Queen is a wholly owned subsidiary of Warren Buffett's Berkshire Hathaway Inc., the company isn't directly in charge of the several hundred thousand employees. But that doesn't mean Gainor misses an opportunity to converse with the Blizzard techs pumping soft serve behind the counter.

Buffett’s PacifiCorp Agrees to 160-Megawatt Wind Deal With Apex (Bloomberg)

PacifiCorp, a utility unit of Warren Buffett’s Berkshire Hathaway Inc. (BRK/A), agreed to buy power from a wind farm that Apex Clean Energy Inc. plans to build in Utah. PacifiCorp will buy the output from closely held Apex’s $230 million Long Ridge wind farm, which will consist of two 80-megawatt projects and is expected to produce enough electricity for about 43,000 average U.S. homes [...]

Berkshire Hathaway derided for ‘foolish’ Aon deal (Financial Times)

Warren Buffett’s Berkshire Hathaway has been branded “foolish” by a leading insurance executive for blindly following underwriting decisions taken by Lloyd’s of London rivals. An unusual deal that Berkshire has struck with the insurance broker Aon is likely to “end in tears”, warned Richard Brindle, founder and chief executive of FTSE 250-listed specialist insurer Lancashire. Lloyd’s officials have already complained that the arrangement – under which Aon has begun to automatically allocate a chunk of all business it places at the historic market to Berkshire – threatens to undermine underwriting expertise.

Warren Buffett joins ceremony at Carmel Geico service center (Indianapolis Star)

Two American business icons made an appearance Monday at the ribbon-cutting for GEICO’s customer service center in Carmel. One was a big green gecko. The other was billionaire Warren Buffett. GEICO announced March 18 that it would open a service center at 101 W. 103rd St. and bring 1,200 new jobs to the city. [...] Berkshire Hathaway owns agricultural systems manufacturer CTB International Corp. in Milford, liability insurance provider Medical Protective Co. in Fort Wayne and RV manufacturer Forest River Inc. in Elkhart. Buffett also donated money toward the $26 million redevelopment of the historic Meadows neighborhood on the Northeastside in 2011. “Obviously, we like Indiana,” Buffett said to a group of reporters at the ceremony.

Dow Says ‘Rest Assured’ on Effort to Redeem Buffett Stake (Bloomberg)

Dow Chemical Co. said its prospects have improved for redeeming $4 billion in preferred stock held by Warren Buffett’s Berkshire Hathaway Inc.and Kuwait’s sovereign wealth fund after interest rates climbed. [...] Midland, Michigan-based Dow pays an 8.5 percent annual dividend on preferred shares it sold to help fund the 2009 purchase of Rohm & Haas Co. Redeeming those is a “top priority for us,” Weideman said. “As we’ve said all along, timing’s important on this.”

5 Reasons Why the Bears Are Wrong About Berkshire Hathaway (Fool Blog)

On May 13, Michael Price of MFP Investors gave a slide presentation at London Value Conference arguing that the fair value of Berkshire Hathaway's stock should be roughly 20% lower than it is today. So are the bears right about Berkshire? Here's five reasons why I believe the answer is an emphatic “No.”

Real Money Stock Pick: Berkshire Hathaway (Fool Video)

As I [Andrew Tonner] add a few companies this week to the defensive value investing portfolio that I manage for the Fool, the theme of this specific purchase could be "invest with the best." Of course, I'm talking about Berkshire Hathaway, which to me perfectly embodies the conservative, outstanding companies I prefer to own.

Candy date with Warren Buffett up for auction (CBS News)

Now one lucky bidder can spend the day picking the brains of the fourth richest man in the world. The magnate is putting himself on the auction block Thursday to benefit Communities in Schools of Los Angeles (CIS), a charity that focuses on keeping kids in school. [...] The winner of the auction will win an "all-you-can-eat" tour of the See's Candy factory in Los Angeles, where Buffet will demonstrate "the only acceptable way to eat a bonbon." Currently, the highest offer is at $18,000 with two bids since launching.