Berkshire News Briefs - 12/15/17

Buffett's About to Get $3 Billion Back From Burger King Owner

Burger King-owner Restaurant Brands International Inc. is scheduled to redeem $3 billion in preferred shares Tuesday from Buffett’s Berkshire Hathaway Inc. The money helped the fast-food chain finance its 2014 purchase of Tim Hortons.

The redemption will take away a lucrative investment for Berkshire and add to Buffett’s arsenal for investments and takeovers. At the end of the third quarter, Buffett’s Omaha, Nebraska-based holding company had a record $109 billion in cash. [...]

After Decades of Hints, Buffett’s Heir May Now Be More Apparent

Keeping the successor’s identity a secret also gives the board more flexibility. Circumstances can change, after all, and probably have during the long period Berkshire’s board has been weighing its options. These days, however, most arrows are pointing toward one man. [...]

Abel has steadily expanded a utility holding company in Iowa into a colossus in the energy industry. It runs several power companies throughout North America and the U.K., interstate natural gas pipelines, and giant wind and solar farms. It’s a big part of Berkshire that stands to get only bigger, Buffett said in May, adding that it’s “hard to imagine a better-run operation.” [...]

Buffett's Fruit of the Loom Tries on Subscription Underwear

Warren Buffett’s Fruit of the Loom is joining the subscription craze.

Guys can now get their boxer briefs from the Berkshire Hathaway Inc.-owned brand through a new subscription service called Fruit to Your Door. Shoppers can buy a six-pack of skivvies, among other products, and have them re-ordered every six months at a 30 percent discount. The program, available for men’s and women’s garments in the U.S., can also be gifted. [...]

What's Geico Really Worth to Berkshire Hathaway?

Few success stories are as important as Geico, which has grown by leaps and bounds since Berkshire acquired it 1996. But as Buffett wrote in his 2010 letter to shareholders, Geico has never been written up to reflect its success and is carried at a mere $1.4 billion premium to its book value.

What would Geico be worth if Berkshire were willing to sell it? We can use a method Buffett laid out in his 2010 letter to shareholders to estimate its value. [...]

Warrren Buffett urged to take old oil tankers out of Adirondacks

An Adirondack conservation group is urging billionaire investor Warren Buffett to remove obsolete oil tankers now being stored indefinitely on a rail line in the Adirondacks.

Adirondack Council Executive Director William Janeway wrote last week to the Nebraska-based investor asking that rail cars owned by subsidiaries of Buffett's sprawling Berkshire Hathaway company be removed from the line.

Owned by Union Tank Car Co. and North American Tank Co., the graffiti-scarred cars are being stored in Warren and Essex counties on a line owned by a Chicago-based company. [...]

Warren Buffett scores a quick $230 million with DaVita deal

UnitedHealth is paying $4.9 billion for a division of DaVita, the kidney dialysis center operator that counts Berkshire as its biggest shareholder, with a 20 percent stake. The one-day paper profit to Berkshire is more than $231 million.

The deal is for DaVita Medical Group, which operates 300 clinics and a handful of outpatient surgical centers in six states. [...] The rest of DaVita will be left to focus on the kidney care business. [...]

Berkshire began investing in DaVita in 2011. The stock has been a favorite of Berkshire portfolio manager Ted Weschler, who has a personal stake in the medical services company of 2.2 million shares, according to FactSet.

But it hasn't always been a slam dunk. At the end of 2011, DaVita shares traded at about $38, rising to $75 by the end of 2014. But they are down 20 percent since then, closing on Tuesday at $60.93. [...]

Duracell Appoints Thom Lachman to CEO of the Duracell Company

Duracell and its parent company Berkshire Hathaway announced today that Thom Lachman has been promoted to CEO of the Duracell Company, Inc., effective January 1, 2018. Roberto (Bobby) Mendez will take over Lachman’s former role, being promoted to President of Duracell North America. [...]

Lachman joined Berkshire Hathaway as a member of Berkshire Hathaway’s Duracell Transition Team on November 1, 2015, and has served as Duracell’s President of North America since March 1, 2016. Before coming to Berkshire Hathaway, Thom gained over 30 years of experience with Procter & Gamble (P&G). His last role as President of P&G Canada was preceded by a role leading the North America integration of the Gillette acquisition. [...]

Chairman of Berkshire Hathaway’s Marmon to Retire in 2018

Frank Ptak, a longtime executive at one of the largest units of Warren Buffett’s Berkshire Hathaway Inc., said in an interview that he plans to retire at the end of 2018.

Mr. Ptak has overseen industrial conglomerate Marmon Holdings Inc. since 2006. He said his preferred successor is Angelo Pantaleo, the current chief executive of Duracell, another Berkshire business.

Earlier Thursday, Duracell said Mr. Pantaleo will become president and chief operating officer of Marmon on Jan. 1. He will also become Duracell’s chairman. [...]

Munich Re to take majority stake in aviation insurer

Munich Reinsurance Co. will hold a majority stake in Global Aerospace Underwriting Managers Ltd. after agreeing to buy an additional 11% of shares in the London-based aviation insurance provider.

Following the purchase from National Indemnity Co., a unit of Berkshire Hathaway Inc., Munich Re will own 51% and National Indemnity will own 49%

Katy Perry drops in on Warren Buffett

Warren Buffett met another celebrity when Katy Perry came to town last week for a concert — or was it the other way around?

Her Instagram account showed the two chatting in Buffett’s office and noted that they talked about cryptocurrency. [...]

Our musicologist, Kevin Coffey, reports that at the concert, Perry told the Omaha crowd that she had had lunch with “your governor, Warren Buffett.” [...]

Berkshire News Briefs - 5/17/17

Berkshire’s Earnings Hit Speed Bump on Insurance Businesses

Warren Buffett’s Berkshire Hathaway Inc. hit a speed bump in the first quarter as insurance units posted an underwriting loss, overshadowing gains at the company’s railroad and energy business. [...]

First-quarter operating profit slipped 4.8 percent to $3.56 billion, the company said Friday in a statement. [...]

Berkshire’s war chest totaled $96.5 billion at the end of the first quarter, a record. [...]

Book value, a measure of assets minus liabilities that’s closely tracked by investors, rose 3.5 percent in the first quarter to $178,073 per share. [...]

Berkshire Hathaway press release on 1Q17 Earnings

Berkshire Cuts 21st Century Fox Stake, Adjusts Airline Bets

Warren Buffett’s Berkshire Hathaway Inc. spent the first quarter fine-tuning its investments in airlines and technology companies, and retreating from 21st Century Fox Inc.

In a filing Monday detailing its stock portfolio at the end of the quarter, Berkshire no longer listed Fox. Holdings in American Airlines Group Inc. and Southwest Airlines Co. increased, while a stake in Delta Air Lines Inc. was reduced. Buffett previously disclosed that he boosted a bet on Apple Inc. in the first quarter as he pulled back from International Business Machines Corp. [...]

The new 13F filing is here. Berkshire Hathaway's updated stock holdings in an easy to read format from Dataroma is here.

5 Key Takeaways From Today's Berkshire Hathaway Meeting

So, what would prompt Berkshire to start putting its cash to work? Essentially, Buffett said that Berkshire wants to acquire businesses that will have a competitive advantage over the next five to 10 years, whose management teams are strong, and that are offered at a fair price. [...]

Buffett also said that if there's a persistent shortage of attractive investment opportunities, Berkshire may eventually choose to increase its buyback criteria of 120% of book value or less, but he is still optimistic about finding ways to deploy Berkshire's capital. [...]

Here's the best wit and wisdom from Warren Buffett at this year's Berkshire Hathaway annual meeting

Buffett and long-time business partner Charlie Munger spoke for hours at the Berkshire Hathaway annual meeting Saturday in Omaha.

The pair frequently elicited laughter from the crowd of 40,000 by answering questions from shareholders and journalists with their usual folksy sense of humor and wisdom. [...]

A Comparison of Berkshire Hathaway Class A and Class B Shares

[...] From these tables, institutions and mutual fund holders own only 27% of the A shares, but 64% of the B shares. That can be explained by insiders and 5% owners holding 41% of the A shares and less than 1% of the B shares. According to Berkshire’s Notice of Annual Meeting of Shareholders May 6, 2017, Warren Buffett beneficially owned 38.3% of the A shares as of March 8, 2017. The insiders primarily accumulated their shares in the 1960’s and 1970’s when Berkshire traded at less than $100 per share.

It should be noted, however, that these tables imply that individuals (other than insiders) hold about 31% of the A shares and 35% of the B shares. [...]

Clayton Homes unveils new tiny home series

Clayton, a Berkshire Hathaway company and a builder of manufactured, modular and site-built homes, introduced its new tiny homes collection Saturday at the Berkshire Hathaway’s Annual Shareholders Meeting in Omaha, Nebraska. [...]

The homes are just 464 square feet and offer 270 degrees of window views. They have vaulted ceilings to give the homes a larger feel, and the master bedroom fits a queen-size bed and a full-height closet. [...]

Even in Texas, sometimes the billionaires lose

A bill that would carve out a loophole for Buffett’s chain of auto-dealerships in Texas — put on the fast track last month right after the billionaire’s meetings with Gov. Greg Abbott and Lt. Gov. Dan Patrick — ran into a wall of opposition from prominent Tea Party activists. They burned up the phone lines at the Capitol and publicly criticized what they saw as special treatment for the wealthy and connected.

Not long after those activists spoke out against the carve-out legislation in an open letter to the billionaire, Patrick pulled the “Buffett Bill” off the Texas Senate agenda, effectively killing it for now [...]

John Oliver eviscerates one of Warren Buffett's favorite companies

One of Warren Buffett's favorite stocks has just been attacked by HBO comedian John Oliver.

DaVita operates dialysis centers, and Buffett's Berkshire Hathaway owns a nearly 20% stake in the company. It was the subject of a scathing 24-minute long segment on Sunday's "Last Week Tonight."

Oliver accuses DaVita of pushing patients to continue receiving long and expensive dialysis treatments instead of having kidney transplants, which could eliminate the need for dialysis.

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 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 - 11/15/13

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 - 7/21/13

The Press of Atlantic City to be purchased by Warren Buffett's BH Media Group (Press of Atlantic City)

The Press of Atlantic City will be sold to Warren Buffett’s BH Media Group by ABARTA, a private holding company based in Pittsburgh, Pa., interim Publisher James W. Hopson announced Thursday. [...] The Press of Atlantic City is a 67,000 daily and 77,000 Sunday circulation newspaper that serves Atlantic, Cape May, Cumberland and Ocean counties. The newspaper’s Web site, pressofAtlanticCity.com , reaches 700,000 unique visitors each month. The Bitzer/Taylor family, owners of ABARTA, has owned The Press since 1951.

The Not-So-Dirty Secret Behind Warren Buffett's Recent Buy (Fool)

Back in late May, MidAmerican Energy, a subsidiary of Warren Buffet's Berkshire Hathaway, made a $5.59 billion offer to buy NV Energy. On the surface, this seems like the prototypical Warren Buffett kind of acquisition. If you dig deeper, though, there is one lesser known area that could make this purchase an even bigger win. [...] The biggest upside for the NV Energy lies not in its current customers or its generation capacity, but in the other market that it could serve: California.

Buffett’s Tulsa World Is Latest Berkshire Newspaper to Cut Staff (Bloomberg)

Warren Buffett’s Berkshire Hathaway Inc., acquirer of more than 25 daily newspapers in the last two years, is eliminating about 50 jobs at the Tulsa World in Oklahoma after making cuts at other publications. A dozen positions in the administrative, information technology and production departments were cut immediately, according to a report posted today on the newspaper’s website. The World announced other changes including the creation of distribution centers where carriers will pick up newspapers, eliminating transportation costs for the company.

Berkshire Hathaway HomeServices brand announces first 9 affiliates (Inman News)

Berkshire Hathaway HomeServices, the new HomeServices of America franchise brand, has announced the first nine Prudential Real Estate affiliates that will transition to the brand this fall. The nine firms joining Berkshire Hathaway HomeServices this fall represent about 20 percent of the roughly 50,000 agents currently affiliated with the Prudential brand. Under the terms of a 2011 sale of the Prudential Real Estate brand to Brookfield Asset Management, the brand is slated to fade away when the last rights expire to it in the late 2020s.

Berkshire Hathaway to End India Insurance-Distribution Deal (WSJ)

Two years after Berkshire Hathaway Inc. launched an online insurance-distribution business in India, it is stopping sales of the only products it had been dealing with in the country. [...] Berkshire had launched its India insurance venture, Berkshireinsurance.com, in March 2011, with a big splash by timing it with Chairman Warren Buffett's first visit to India. Berkshire didn't underwrite insurance, but sold mostly vehicle- and travel-insurance policies of Bajaj Allianz, via the website.

What's Behind Berkshire Hathaway Inc's Big DaVita Buy? (Minyanville)

Berkshire has been building a position in DaVita since the fourth quarter of 2011. The stage was set for Berkshire's latest big purchase, however, on July 1, when the Centers for Medicare & Medicaid Services (CMS) unexpectedly announced a proposed rule to cut payments to large dialysis companies by as much as 12% starting in 2014. If approved, the move could close the doors of some smaller dialysis facilities. After the announcement, many DaVita shareholders headed for the exit. By July 2, its share price had dropped by 6% from the day earlier, and by about 13% from the yearly high reached in May. That day, Berkshire portfolio manager Ted Weschler, known for finding value in distressed companies, moved to buy another 639,400 shares of DaVita, boosting its stake to 14.8%, for a total transaction value of $73.37 million.

Warren Buffett sees 'betrayal' as hospital drains big endowment (CNBC)

Donald and Mildred Othmer made a lot of money investing with Warren Buffett. When they died, they wanted their Buffett profits to be given back to the community. They probably never imagined what would happen next. In what it calls a "cautionary tale for wealthy investors who hope their gifts will make a long-term impact," The Wall Street Journal reports on the destruction of a $135 million hospital endowment created less than 20 years ago by the Othmers. Buffett tells the Journal that if the donors were alive, "I would think...they would feel betrayed."

Special Section: Berkshire's Exposure to Detroit Bankruptcy

Buffett Insurer Wrap Firms Up Detroit Debt (Bond Buyer)

In the sea of junk-rated Detroit debt trading for 30 to 40 cents on the dollar, a small piece of the city’s defaulted pension certificates continue to see retail bids of nearly 90 cents on the dollar. The higher valued debt features an insurance pledge from Berkshire Hathaway Assurance Corp., the government bond insurer controlled by financier Warren Buffett. [...] Though Buffett has repeatedly expressed caution about insuring tax-exempt bonds, BHAC has about $400 million in exposure to Detroit’s tainted debt, most of which is sewer bonds. All the BHAC insurance is a wrap on top of an original guarantee from Financial Guaranty Insurance Co. BHAC’s secondary insurance gives additional comfort to investors and means BHAC would only have to pay if the issuer defaults and then the original insurer can’t meet the obligation — a scenario not too far off for Detroit creditors.

Detroit's bust could ripple back to Berkshire (Omaha World-Herald)

Detroit has filed for bankruptcy to reduce its debts, and Berkshire Hathaway Inc. of Omaha insures about $700 million worth of Detroit's sewer and water bonds. It's unclear whether the bankruptcy case would let Detroit default on the bonds or pay only part of what it owes, which could prompt the bond holders to file insurance claims against Berkshire. [...] The bonds insured by Berkshire are being repaid from sewer and water fees, not city taxes pledged to Detroit's “general obligation” bonds. Detroit is seeking to pay only a portion of its general obligation bond debt, along with other debts the city owes. Revenue bonds, such as the sewer and water bonds insured by Berkshire, generally are repaid as long as the revenue continues, and sewer and water fees generally are regarded as a steady source of money. That difference might be enough to prevent a claim against Berkshire.

Special bonds have better chance of being paid (Crain's Detroit Business)

While Detroit's bondholders will be hat-in-hand fighting for owed debt, holders of the city's special revenue bonds have a better prospect of payment through the Chapter 9 process. Detroit's special revenue bonds, including the $5.9 billion bond debt of the Detroit Water and Sewerage Department, are protected under Section 922 D of the U.S. Bankruptcy Code. Payments on a special revenue bond are guaranteed solely from revenue generated from an entity -- such as the water department -- rather than from taxes, as is the case with other bonds. [...] But legal arguments will be raised and those payments will be attacked by other bondholders, said Timothy Wittebort, a partner at Howard & Howard Attorneys PLC in Royal Oak. Wittebort said Detroit's pensioners will argue that the Michigan Constitution protects their pensions and go after the revenue-generating assets.

Berkshire News Briefs - 7/7/13

Buffett’s Geico Promotes Roberts as Insurer Takes on Allstate (Bloomberg)

Warren Buffett’s Berkshire Hathaway Inc. promoted Bill Roberts to president and chief operating officer of the Geico unit as it competes with Progressive Corp. and Allstate Corp. for auto insurance customers. Roberts had been executive vice president of Geico since 2000 with duties including marketing, advertising and the Internet business unit, the insurer said in a statement today.

Even if Warren Buffett's successor isn't known, Geico's might be (Omaha World-Herald)

Olza M. “Tony” Nicely, once considered a potential successor to Warren Buffett as CEO of Berkshire Hathaway Inc., now has his own successor in line. [...] Nicely remains CEO and chairman, but last week Geico promoted Bill Roberts to president and chief operating officer. [...] Becoming president and COO of a company is usually the last step before the top job, and the two men's ages seem to line up, uh, nicely.

Geico shifts leadership gears, puts pedal to the metal on advertising (Washington Post)

The leadership shuffle comes as the company closes in on Allstate as the nation’s second-largest auto insurer. The industry leader is State Farm. Geico surpassed Allstate in business during the first quarter of the year, posting $4.72 billion in new auto insurance premiums, compared with its competitor’s $4.53 billion. Allstate, though, has picked up more business over four quarters, $17.65 billion in premiums to Geico’s $17.16 billion [...]

On the same day as Geico’s leadership announcement, the company reported that it had sold its 12 millionth car policy. (The firm now covers more than 18 million total vehicles.) Meanwhile, the company’s underwriting profit jumped 18 percent last year and its employee rolls have grown to 28,000 [...]

In 2012, Geico spent more than $1.1 billion on advertising, up 12.45 percent from the year before and an even greater boost than the 10.1 percent increase its posted between 2010 and 2011 [...]

It was by far the most spent by any property insurer last year — Allstate was a distant second, at $828.8 million — and the fifth-largest amount spent on advertising by any company in the United States [...]

How Berkshire Hathaway Is Quietly Taking Over the World (Fool)

On multiple occasions, Warren Buffett has bluntly admitted that Berkshire Hathaway's enormous market capitalization will make it impossible for the company to duplicate its past rates of return going forward. That's no wonder, especially when we note by the end of 2012 he had grown Berkshire's per-share book value by 586,817% over the previous 48 years. But that certainly doesn't mean Berkshire can't continue to beat the market going forward. What it does mean, however, is that investors can expect the role of small acquisitions to continue playing an ever-increasing role in expanding Berkshire's moat, even as the company continues to snap up relatively large businesses.

Berkshire's Specialty Insurance, Bigger Than You Think? (Fool Video)

Two weeks ago, Berkshire Hathaway announced its newly formed commercial property-casualty insurance group, Berkshire Hathaway Specialty Insurance, is officially up and running. While that may not be a surprise given the fact Berkshire hired four of AIG's senior property-casualty executives in April, investors may not realize just how much this unit could eventually contribute to Berkshire's operations as the company takes market share from other players in the space [...]

Berkshire Hathaway Buys More DaVita Stock (The Street)

Warren Buffett's company bought more than 500,000 more shares of dialysis provider DaVita Inc.'s stock last week after prices dropped because of fears of reduced Medicare payments. The latest purchases reported to the Securities and Exchange Commission on Friday give Buffett's Berkshire Hathaway Inc. 15.6 million shares of DaVita's stock. Berkshire now owns about 15 percent of DaVita, but it has agreed not to buy more than 25 percent of the Denver-based company unless, both companies agree. DaVita runs nearly 2,000 outpatient dialysis clinics.

Everything You Need to Know About Keystone XL: Why Railroads Care (Fool)

In terms of oil sand crossing the border via rail, only Canadian Pacific, Canadian National Railway, and Burlington Northern Santa Fe, part of the Berkshire Hathaway holdings, have rail lines that would deliver oil sands to the Gulf [...] This companies are also the only game in town in case producers and refiners find it attractive to move oil sands to refineries on the West [...] If Keystone XL gets rejected, it more than likely creates a better opportunity for rail to compete. Lack of takeaway capacity could potentially hurt prices for Western Canadian Select, which would also help rail companies. If prices can stay within a range where that $30 premium to move via rail is still competitive against other heavy crude sources in the Gulf Coast, then rail certainly has a shot to make an impact.

Undercover Boss: Oriental Trading Company (YouTube)

Oriental Trading Company CEO Sam Taylor was featured on the CBS TV series "Undercover Boss" last year, and the episode is up on YouTube, if you have 42 minutes to kill. The episode aired over 6 months before Oriental Trading Company was acquired by Berkshire Hathaway last November (and was probably filmed many more months before that).

Berkshire News Briefs - 5/30/13

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

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

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

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

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

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

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

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

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

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

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

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

What Brooks Has Learned Working With Buffett (Fool Video)

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

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

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

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

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

Berkshire Hathaway Acquires 5% Stake In Starz (ValueWalk)

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

Berkshire Sues NeighborCity.com in IP Dispute (Technorati)

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

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

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

Berkshire Subsidiary News - 5/14/13

Berkshire Hathaway Intrinsic Value Pie Chart (Seeking Alpha)

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

Understanding Berkshire Hathaway Stock (Fool)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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