Berkshire News Briefs - 7/1/15

Geico Nabs a Film Grand Prix at Cannes -- With a Pre-Roll Ad (Ad Age)

In a move that may spark a welcome sea change in the snooze-worthy arena of pre-roll advertising, the Cannes Lions International Festival of Creativity Film Jury awarded one of its top prizes to a mold-breaker in the category: a spot from Geico's "Unskippable" campaign that dares viewers to try and stop watching ads in which "nothing" happens. [...]

Geico topped the Non-Television category. Its pre-roll, "Family," created by The Martin Agency and directed by Park Pictures' Terri Timely, put a hilarious twist on the typically boring genre and features a family sitting at the dinner table with the Geico logo plastered boldly in the middle of the frame. Seconds into the ad, a voice-over announces, "You can't skip this Geico ad because it's already over," and mid-action, the family stops, except for the dog, who proceeds to devour every bit of food on the table. Although nothing much happens beyond that, the ad gets progressively funnier since it's blatantly obvious that the actors in the scene are simply holding their poses as the dog carries on.

Here's the extended version of GEICO's winning ad:

There's more of them in the series, if you play that one to the end and then watch the next suggested videos. GEICO is one of the few companies that I can waste 20 minutes on YouTube just watching their hilarious ads. This one is another current favorite of mine:

Warren Buffett's Berkshire Hathaway Expands in Australia, Opens New Zealand Office (Bloomberg)

Warren Buffett’s Berkshire Hathaway Inc. is adding an office in New Zealand and expanding its operations in Australia as part of a push to sell more commercial insurance globally.

The specialty-insurance unit is underwriting property and casualty coverage through a new office in Auckland, the company said Monday in a statement. Berkshire also announced it will sell policies to hospitals and medical practices in Australia, led by former American International Group Inc. executive Tony Bainbridge.

With Kraft Heinz merged, now comes the cutting (Chicago Tribune)

(Berkshire Hathaway is the majority shareholder of Heinz.)

Kraft Foods Group shareholders voted Wednesday to approve the company's sale to H.J. Heinz, a deal that brings together two storied packaged-food companies vying for attention as consumers look for healthier, fresher fare. [...]

More than 98 percent of votes cast were in favor of the transaction, representing over 69 percent of all outstanding Kraft shares, Corporate Secretary Kim Rucker told the small group. [...]

The acquisition may lead to heavy job losses as Kraft and Heinz — which have each already trimmed their ranks in recent years — try to cut $1.5 billion in annual costs. [...]

On Monday, the companies announced that many of Kraft's top executives, including Chief Financial Officer James Kehoe, will leave the food maker soon after the deal is completed.

Utilities commission approves TransAlta plant near Wabamun (Edmonton Journal)

TransAlta’s new gas-fired electricity plant near Wabamun got a green light from the Alberta Utilities Commission, which dismissed concerns about increased air pollution into the Edmonton area.

Sundance 7 — an 856-megawatt plant — is a joint venture with Warren Buffett’s Berkshire Hathaway Energy Company and could come on stream in 2018, according to the AUC ruling.[...]

TransAlta notes that gas-fired electricity is less polluting than coal-fired plants and the company intends to shut down two smaller coal units in 2019.

Berkshire Hathaway Inc. is Expected to Report $N/A for QN/A (The Markets Daily)

Remember kids, if you're going to use Mad-Libs computer programs to write your business news, be sure to hire a human editor.

Wall Street analysts expect Berkshire Hathaway Inc. to report earnings per share of $N/A for the current fiscal quarter. This number is based on the average estimate of the sell-side research firms that cover the stock. Berkshire Hathaway Inc. most recently reported earnings per share of $N/A on N/A for the quarter ended N/A.

This number was N/A away from what analysts had expected, a difference of N/A%.

Warren Buffett is now the world’s richest cartoon character (MarketWatch)

[...] Already known as one of the most famous investors in the world, the Oracle of Omaha has become celebrated of late among the grade-school set for his work with the Secret Millionaires Club, an animated program that teaches kids about finance. [...]

Since its relatively low-key inception in 2009, the series has grown to encompass a full slate of “webisodes” and half-hour TV programs (the show has aired on The HUB cable network, now the Discovery Family Channel; a new network partner is expected to be announced soon). Additionally, it has spawned a book, DVDs and “business in a box” kits that help youngsters start their own small-scale enterprises.

Berkshire News Briefs - 6/24/15

Berkshire becomes Heinz's top owner ahead of Kraft merger (Reuters UK)

H.J. Heinz Co said on Thursday that Warren Buffett's Berkshire Hathaway Inc has become its majority shareholder by exercising a warrant ahead of the ketchup maker's planned merger with Kraft Foods Group Inc.

In a regulatory filing, Heinz said Berkshire exercised a warrant to acquire about 46.2 million shares for nearly $462,000 this week.

Heinz said the shares represent about 5.4 percent of its outstanding common stock, and that their issuance gives Berkshire a 52.5 percent overall stake.

Warren Buffett plans $2 billion a year Australian spending spree (Sydney Morning Herald)

Mr Buffett, the head of investment conglomerate Berkshire Hathaway, will use funds from a newly minted deal with Insurance Australia Group to build up equity stakes in other large Australian companies including at least one bank.

One of the globe's most astute investors over five decades, Mr Buffett said the deal announced on Tuesday would deliver a stream of Australian dollars which would be invested locally to avoid currency risk.

BNSF Charging Lower Rates for Most-Modern Crude-by-Rail Cars (Bloomberg)

Burlington Northern Santa Fe LLC, the largest U.S. crude-by-rail carrier, is offering lower rates to lug oil in cars that meet the latest federal specifications issued in May. That means the vast majority of cars riding the rails today, known as DOT-111 and CPC-1232, will cost more to haul.

The new rates are part of a plan by the railroad owned by Warren Buffett’s Berkshire Hathaway Inc. to push older cars off the tracks as regulators scrutinize the industry over a series of high-profile explosions. [...]

Fitch Publishes Report on Berkshire Hathaway's Recent Growth in Commercial Lines Insurance (Business Wire)

In a new special report, Fitch Ratings reviews the recent meaningful expansion by Berkshire Hathaway, Inc. into the U.S. commercial lines insurance market. [...]

BRK has also quietly expanded to become the 10th largest U.S. commercial lines insurer based on 2014 direct premium volume. Fitch's report explores the source of BRK's premium growth, recent underwriting experience of new business, and the sustainability and credit implications of this growth.

Business expansion over the past five years has been significant with commercial lines direct premium expanding by 125% to $5.6 billion through organic growth and targeted acquisitions. Workers compensation insurance has been a key driver of this growth and BRK is now the seventh largest U.S. writer based on 2014 direct written premiums.

Berkshire most exposed to asbestos losses (Business Insurance)

U.S. property/casualty insurers' asbestos reserves were deficient by $5 billion to $12 billion as of year-end 2014, with Berkshire Hathaway Inc. being most exposed, Fitch Ratings Inc. said in a report issued Tuesday. [...]

Berkshire Hathaway has the most asbestos reserves of all companies, with about $14 billion, according to the report. But it has assumed $12 billion of asbestos losses through reinsurance transactions, according to the report.

Berkshire Buying Opportunity (Morningstar)

We continue to be impressed by wide-moat-rated Berkshire Hathaway's ability to generate high-single-digit to double-digit growth in its book value per share, believing it will take some time before the firm finally succumbs to the impediments created by the sheer size and scale of its operations. [...]

With the company currently trading at 83% of our fair value estimate--which is at $252,500 per Class A share or $168 per Class B share--Berkshire is not only one of the best near-term opportunities in the financial-services sector, it's also priced at the best entry point we've seen in quite some time for long-term investors.

Charlie Munger Speech at USC - May 2007 (YouTube - 44 min video)

No time to watch the whole thing? Here's a link to a PDF of notes from the speech.

Berkshire News Briefs - 6/2/15

NetJets replaces CEO amid prolonged labor dispute (Columbus Business Journal)

NetJets Inc. announced Monday the departure of CEO Jordan Hansell and named a replacement to take over immediately.

The Columbus-based private jet company, a subsidiary of Warren Buffett’s Berkshire Hathaway Inc., said Adam Johnson, with the company since 1996, including most recently as president of marketing, sales and owner services, has been named NetJets chairman and CEO. Hansell had been CEO since 2011.

NetJets Shuffle: Costs of Deviations from the Berkshire Model (ValueWalk)

At NetJets, Sokol left behind both his thrifty business model and a successor, Hansell, whom Sokol had recruited from Berkshire's energy business. NetJets' pilots love Santulli and have always lamented his departure. They detest both Sokol and Hansell, and especially their low-cost strategy. After Santulli left, management-labor relations deteriorated steadily [...]

Amid mounting turmoil, in early 2015, two Santulli-era senior executives resigned from NetJets and today the company announced that they are returning to lead NetJets: Adam Johnson, a 20-year company veteran, and Bill Noe, who is also a pilot. Their stated goal is to reengage NetJets' employees in the business and return the company to greatness. In other words, they appear poised to abandon the Sokol business model in favor of Santuilli's original concept.

Warren Buffett wants to cut benefits of his planes’ pilots (NY Post)

(Note that this was published last week, before the leadership change.)

Berkshire Hathaway-owned business-jet operation NetJets is trying to wrangle benefit cuts from its pilots union just as boom times fuel a pilot shortage that could crimp its business. [...]

With the economy on the rebound, wealthy customers have returned to buying shares in NetJets planes in exchange for flying hours. Last year it sold 3,500 NetJets Marquis cards — 1,000 more than expected, the exec said.

Nevertheless, NetJets, which almost collapsed during the downturn when CEOs cut back on private-jet travel, said it has to trim costs to meet Berkshire’s demands for greater returns.

BNSF plans temporary layoffs with slipping freight demand (Tulsa World)

BNSF Railway Co. says it’s planning employee furloughs due to slipping freight shipping demand across its rail network.

The company said Wednesday in a statement that it hopes to call back employees “as soon as business needs change.”

The railroad would not say how many employees were being furloughed but that they are “at different locations across our network.”

Kraft Heinz Turns Into A Hedge Fund Favorite As Buffett And 3G Mix Ketchup With Macaroni (Forbes)

Although analysts have a big appetite for synergy loaded deals like Berkshire and 3G’s latest M&A foray, they question whether the company’s lack of organic and natural foods, and its exposure to salty, sugary and fatty goods will prove a roadblock for growth no matter how successful 3G is in cutting costs. Other possible headwinds include dealing with refrigerated foods, technical issues from supply chain changes, and volatile global currencies, issues that have so-far weighed on Heinz sales.

Citigroup analysts, however, see an ability for Kraft to generate new sales as it takes back trademarks it’s licensed out to Mondelez over the two-to-10-years. Heinz’s existing infrastructure in Europe, Brazil and Asia, meanwhile, could help increase the penetration of Kraft brands. Were one to assume 3G’s guidance on synergies is credible, Kraft Heinz also doesn’t look overly expensive when compared against industry competitors.

Las Vegas Casinos Challenging Warren Buffett's Energy Company (Fool)

But the energy industry might be changing faster than Buffett realizes, and Berkshire Hathaway's $10 billion takeover of Nevada utility NV Energy two years ago could show just how problematic the business is today. He's not being challenged by environmentalists or fossil fuel prices; instead, it's casinos on the Las Vegas Strip, NV Energy's biggest customers, that are threatening to leave the utility and find their energy elsewhere.

It takes a lot of power to run a Las Vegas casino. MGM Resorts alone accounts for about 5% of NV Energy's electricity delivered, and that's from just 12 properties. Add in Wynn Resorts, Las Vegas Sands, and data center company Switch, and NV Energy relies on just four customers for about 10% of its demand each year. All the more problematic is the fact that; all four companies want to leave the utility.

Berkshire Hathaway Energy advances utility legislation despite Cantwell pushback (E&E Publishing)

Berkshire Hathaway Energy appears to be successfully pushing legislative language through both chambers of Congress that would scrap federal requirements for utilities to buy power from small renewable and cogeneration units.

But Warren Buffett's multinational conglomerate will have an uphill battle getting that language past the Senate Energy and Natural Resources Committee's top Democrat, Maria Cantwell of Washington.

Cantwell has made clear she plans to work against Berkshire Hathaway Energy's (BHE) proposal, which she said amounts to an attempt by the company to bolster its position in the Western coal markets, where it owns both rail lines and generators. [...]

Richline to Unveil Smart Jewelry Designs and Partnerships at JCK (BusinessWire)

Richline Brands is set to introduce its highly anticipated foray into the world of wearable technology with an array of smart jewelry offerings at the JCK trade show in Las Vegas. [...]

Buffett Auction Draws $1 Million Bid, Exceeding 2014 Pace (Bloomberg)

Warren Buffett’s annual lunch auction drew a top offer of more than $1 million in the charity event’s first full day, exceeding the pace of last year’s bidding.

The annual charity event, now in its 16th year, started Sunday evening and concludes Friday. The highest offer was $1,000,100 as of 10:46 a.m. Monday in San Francisco, according to Ebay Inc.’s website. [...]

Buffett, 84, has raised $17.8 million for San Francisco’s Glide Foundation by offering admirers an avenue to get face time with him. Glide, which offers free meals, affordable housing and counseling for the poor, is led by the Rev. Cecil Williams, 85.

Origins of a Buffett and Mark Cuban sighting in midtown Omaha (Omaha World Herald)

“Someone just gave me Warren Buffett’s email,” Cuban had replied. “I’m going to email him and see if he’ll meet with me. I really want to talk with Warren Buffett.”

So there they were, Buffett in a nice suit and Cuban in a polo shirt, waiting for a driver to do a U-turn on Farnam Street to pick them up for a trip to the Dairy Queen [...]

Berkshire News Briefs - 4/21/15

British regulator challenges US over Berkshire scrutiny (Financial Times)

British regulators have challenged their US peers over their apparent reluctance to subject Warren Buffett’s Berkshire Hathaway to tougher scrutiny as part of a worldwide push to make the financial system safer.

The Bank of England has written to the US Treasury asking why Berkshire’s reinsurance operation — among the world’s most powerful — was left off a provisional list of “too big to fail” institutions drawn up by the Financial Stability Board.

Kraft looked around before accepting Heinz offer (Pittsburgh Post-Gazette)

Kraft Foods Group chairman and CEO John Cahill spent St. Patrick’s Day in Munich talking with two of the founding partners of 3G Capital about what a combined Kraft/​Heinz company might look like and how it could succeed.

That detail, among others, is disclosed in a recent regulatory filing describing negotiations that culminated March 25 with an announcement that two of the more historic names in the American food pantry would merge to form the new Kraft Heinz Co. as early as the second half of 2015.

The tale is of a determined suitor, Pittsburgh-based H.J. Heinz Co., pressing its case, even as the Northfield, Ill.-based company that had caught its eye moved quickly to assess its options while at the same time angling for a better offer.

Berkshire Hathaway buys group of small Oklahoma newspapers (WRAL)

Warren Buffett's company is adding a group of small Oklahoma newspapers near Tulsa to its growing group of more than two dozen small and medium-sized newspapers.

Berkshire Hathaway Media Group said Monday that it had acquired six weekly newspapers and the daily Tulsa Business and Legal News from Community Publishers Inc.

Berkshire Hathaway Still Looks Undervalued (Fool)

Every year, I value Berkshire Hathaway using the "two-column" approach (if you're not familiar with this approach, don't worry, I'll explain it). About a year ago, I found it to be at least 20% undervalued at $116 per B-share. Fast-forward to 2015, and the B-shares have advanced 22% to $142. So I figured it was time to sharpen up my pencil and reestimate the value.

My conclusion: The stock is just as undervalued, even at today's higher prices.

Bigger Than Buffett: 6 Advisors Who Matter More to Berkshire Hathaway's Future (Fool)

If you're picking from this list, it almost doesn't matter who the next CEO is. [...] One of the great and often overlooked byproducts of the way Berkshire operates is that it attracts and retains "world-leading" business leaders like the people discussed here. That's partly by design, as Buffett looks for great managers who will stay around when he acquires a company. But it's also a product of the culture itself, which draws executives who want to be part of something great while being given the autonomy to do great things.

Why Warren Buffett Is Destined for a Small Role in American History Books (Fool)

How will historians write about Warren Buffett 100 years from now? Will they treat him like the magnificent Commodore Cornelius Vanderbilt? Or will the 84-year-old multibillionaire play a more muted role in history books, akin to the venerated Gilded Age stock operator Henry Clews? [...]

But unlike the great business moguls of America's past, Buffett didn't invent a product or process that will live on in perpetuity. Vanderbilt gave us steamship lines, the New York Central Railroad, and New York City's Grand Central Station. Carnegie industrialized steel, paving the way for skyscrapers and the Golden Gate Bridge. Ford popularized mass production and democratized the automobile. Even J. P. Morgan, while playing a similar role to Buffett's, put America's financial sector on the map by supplanting the Rothschilds and Baring brothers at the summit of global finance.

Up to 44,000 expected for Berkshire Hathaway shareholders weekend (Omaha World-Herald)

Between 42,000 and 44,000 shareholders are expected to celebrate Warren Buffett’s 50 years of managing Berkshire Hathaway Inc. when the company holds its annual meeting in Omaha on May 2. That’s 3,000 to 5,000 more than last year’s record of 39,000 attendees, Buffett’s office said Wednesday.

The estimate is based on an increase in the number of shareholder requests for meeting credentials this year. [...] Not all credentials are used at the meeting, but the requests are a gauge of expected attendance.

Berkshire Hathaway Travel Protection Honored For Best Travel Mobile App and Site in The 19th Annual Webby Awards (MarketWatch / BusinessWire)

Berkshire Hathaway Travel Protection, part of Berkshire Hathaway Specialty Insurance, announced today that it has been honored for Best Mobile Travel App in the 19th Annual Webby Awards. Hailed as the “Internet’s highest honor” by The New York Times, The Webby Awards, presented by the International Academy of Digital Arts and Sciences (IADAS), is the leading international award honoring excellence on the Internet. [...]

Berkshire Hathaway Travel Protection, made history last year with the introduction of AirCare™, the first-ever low-cost, fixed-benefit flight-protection coverage. The innovative product covers travelers from everyday mishaps such as missed connections, flight delays and lost/delayed baggage. The engine behind AirCare™ is a user-friendly mobile app that allows for ease of purchase and for simple and fast claims processing. Berkshire Hathaway Travel Protection is the only travel insurance provider to offer such an app.

National Indemnity moving to new space (Omaha World-Herald)

National Indemnity Co., Berkshire Hathaway Inc.’s Omaha-based property insurance operation, is moving out of its home office at 3024 Harney St., its location since the building opened in 1950. The company also is leaving other space it occupies nearby.

Over the past year, affiliates of National Indemnity have moved to the Omaha World-Herald Building at 1314 Douglas St., occupying four floors with a total of 108,000 square feet of office space.

By the end of 2016, National Indemnity may move the rest of its operations to the 16-story World-Herald Building, occupying as many as nine floors in all. Those arrangements aren’t final, but the result would be an inter-company lease: The World-Herald Building also is owned by Berkshire.

If it seems like there are an unusual number of Motley Fool stories in here this week, it's because they're ramping up their annual coverage for the annual meeting. Check out and bookmark the Fool's Berkshire Hathaway 2015 coverage page.

Berkshire News Briefs - 4/3/15

Buffett: Tesla doesn't threaten me (CNBC)

Warren Buffett and Larry Van Tuyl appeared on CNBC this week, with lots to say about the auto business. Buffett went on to talk about a number of other topics (Kraft, the Euro, Iran, interest rates, etc.), far more than I could squeeze into this excerpt.

Warren Buffett's new auto dealership business isn't under any threat from Elon Musk or his Tesla distribution model, the billionaire said Tuesday. [...] Buffett said he did not anticipate much of a threat from the electric car company's direct-to-consumer model because of Tesla's relatively small market. [...] Buffett also dismissed the notion of an near-term takeover of self-driving cars, saying "I think it's a long way off and I don't think everybody will adopt it." The billionaire said that he would bet there is less than a 10 percent penetration rate for self-driving cars by 2030. He did admit, however, that "if it's a safer way of driving, it's good for society and it's bad for our insurance business." Buffett also revealed Tuesday that he has big plans for his newly acquired unit, and that it is already on the prowl for new deals. "I'd be very surprised if five years from now we aren't a whole lot bigger," he said.

Full transcript of the interview here.

Berkshire Hathaway Automotive targets growth, possibly abroad (Automotive News)

Another perspective on the news from a different source.

Its chairman, Larry Van Tuyl, and Berkshire Hathaway Inc. CEO Warren Buffett spoke today on CNBC’s “Power Lunch.” Van Tuyl said the company is interested in buying dealerships “in the U.S. primarily,” leaving open the option for some foreign investments. Van Tuyl went on to list what he is looking for in future acquisitions: “We look for throughput and volume, high-volume dealerships that are reasonably priced and owned by somebody who wants to put it in good hands.” The company wants to buy the real estate, too, where available, he added.

The mobile-home trap: How a Warren Buffett empire preys on the poor (Seattle Times)

But until informed recently by a reporter, they didn’t realize that the homebuilder (Golden West), the dealer (Oakwood Homes) and the lender (21st Mortgage) were all part of a single company: Clayton Homes, the nation’s biggest homebuilder, which is controlled by its second-richest man — Warren Buffett. Buffett’s mobile-home empire promises low-income Americans the dream of homeownership. But Clayton relies on predatory sales practices, exorbitant fees, and interest rates that can exceed 15 percent, trapping many buyers in loans they can’t afford and in homes that are almost impossible to sell or refinance, an investigation by The Seattle Times and Center for Public Integrity has found.

Berkshire Hathaway's media business buys two Virginia newspapers (Chicago Tribune)

Berkshire Hathaway Inc. has purchased two Virginia newspapers as the company run by billionaire Warren Buffett adds to its stable of publications. Berkshire's BH Media Group acquired a daily, the Martinsville Bulletin, and the tri-weekly Franklin News-Post from closely held Haskell Newspapers, according to a statement issued Tuesday. The papers have a combined circulation of 17,350. Terms weren't disclosed.

BNSF Slows Oil Trains Up to 30% to Boost Safety After Accidents (Bloomberg)

BNSF Railway Co. is cutting the speed of oil-carrying trains in some urban areas to as slow as 35 miles per hour, a 30 percent reduction, to improve safety following crude-by-rail accidents this month. BNSF, owned by Warren Buffett’s Berkshire Hathaway Inc., implemented the slower train speeds and measures to inspect tracks and rail cars more closely on March 25, Mike Trevino, a spokesman, said on Monday. The reduction trims the speed from the 40 mph (64 kilometers per hour) in high-risk areas that railroads, including BNSF, last year voluntarily installed in 46 urban areas. In some cases, the cut is from 50 mph for cities with populations of at least 100,000, the Fort Worth, Texas-based rail company said.

POSCO shares drop following media reports on Warren Buffet's stake sale (Korea Herald)

POSCO shares fell sharply on Wednesday following media reports that Berkshire Hathaway Inc., led by U.S. billionaire investor Warren Buffet, has sold its entire stake in the steelmaking giant, raising speculation that the sell-off might have been prompted by concerns over the South Korean steelmaker's cloudy business outlook. [...] The drop comes after Maeil Business Newspaper and other local media reports showed that Berkshire Hathaway unloaded 4.5 percent, or nearly 4 million shares, of POSCO during the second quarter of last year, citing an analysis by a global financial information provider.

Kraft Deal Boosts Buffett (Barrons)

The merger deal announced last week between Kraft Foods Group and H.J. Heinz is a good deal for Kraft shareholders, who will get a nice premium, but it’s a far better one for 3G Capital and Berkshire Hathaway, which took Heinz private nearly two years ago in a leveraged buyout. [...] By our calculation, 3G and Berkshire have more than tripled their original $8.5 billion equity investment in Heinz in less than two years, which amounts to a private-equity type score on a deal that originally looked like it was fully priced. Heinz was taken private at about 20 times forward earnings. We estimate that Berkshire and 3G are each sitting on more than $10 billion in profits from their investments in Heinz.

Regulator accuses Iowa governor of appeasing MidAmerican (Lincoln Journal Star / AP)

An outgoing member of the Iowa Utilities Board bluntly told Gov. Terry Branstad in a letter that his decision to remove her is improper and is being done to placate a powerful energy subsidiary of Warren Buffett's Berkshire Hathaway. Sheila Tipton told the governor in the March 18 letter that his move to replace her and demote board chair Elizabeth Jacobs is an inappropriate attempt to influence future decisions to favor utilities and "appease MidAmerican Energy." The company had complained about a ruling requiring the company to use some proceeds from a $280 million wind energy investment to reduce customers' rates.

Warren Buffett sees no weakness in economy, but too many 'are left behind' (Omaha World Herald)

Investor Warren Buffett says the economy continues to grow steadily, but too many people continue to miss out on the American dream. Buffett told CNN Thursday that he doesn't see any real sign of weakness in the economy. Buffett looks at reports from the more than 80 businesses his Berkshire Hathaway conglomerate owns for insight. But Buffett reiterated his concerns about income inequality in this country while the super-rich continue to thrive. He said that America should be able to do more to help people who are struggling do better.

Berkshire News Briefs - 3/27/15

Buffett's HJ Heinz to merge with Kraft Foods (CNBC)

Kraft Foods Group stock surged Wednesday after the company announced a merger deal with H.J. Heinz financed in part by Warren Buffett. Buffett told CNBC that his Berkshire Hathaway company will have $9.5 billion worth of common stock in the newly merged H.J. Heinz-Kraft Foods company. It will be headed by Heinz Chief Executive Bernardo Hees. [...] Under the terms of the deal, Heinz will return to the public market with a 51 percent ownership of Kraft. Current holders of Kraft stock will own 49 percent of the company.

We'll have $9.5B in new Kraft-Heinz: Buffet (CNBC)

The deal to create the third-largest food and beverage company in the North America—announced hours before Buffett's interview on CNBC's "Squawk Box"—was in the works for about four weeks, the billionaire investor said. "It moved along quite promptly," he said, but stressed he's in it for the long haul. [...] "The short term doesn't make much difference to us, because we will be in this stock forever," Buffett said. "This is a business with us. It's not really a stock. It's a company that we'll own 26 and a fraction percent of."

3G Capital: Warren Buffett's Favorite Partner in Deals Worth Billions (NY Times)

Warren E. Buffett has made a habit of criticizing ruthless Wall Street bankers and rapacious private equity firms over the years. As recently as last month, he railed against both in his annual letter to his shareholders at Berkshire Hathaway. Yet for Mr. Buffett, a genteel billionaire who has managed to put a friendly face on big business, one private equity firm stands apart from the rest. 3G Capital, the Brazilian private equity firm co­founded by the billionaire financier Jorge Paulo Lemann, has in recent years emerged as Mr. Buffett’s preferred business partner in striking multibillion­dollar deals.

Buffett’s ‘German scout’ on the hunt (Omaha World Herald)

Zypora Kupferberg started her own investment business after leaving a larger company because she wanted to be “closer to the customer.” Now the 48-year-old is “Warren Buffett’s German scout,” scanning the European business landscape for businesses Buffett would buy [...] “She knows what we are looking for and we hope we will hear more from her,” Buffett told Handelsblatt.

How Warren Buffett Wins From Bank of America's Capital Plan (Fool)

Warren Buffett has a sizable stake in Bank of America, even if it's hidden from plain view. Berkshire Hathaway owns warrants that entitle it to purchase 700 million Bank of America shares for $7.14 each at any time before 2021. [...] By holding the warrants, Buffett is reducing his downside risk. If he exercised the warrants, Berkshire Hathaway would have $5 billion in additional capital at risk in Bank of America in exchange for only $140 million in incremental dividend income each year. Exercising the warrants gives Berkshire very little upside for a tremendous amount of additional downside.

Nebraska Furniture Mart begins stocking shelves for customers (Dallas Business Journal)

After promises that shelves would begin to be stocked at Nebraska Furniture Mart's new North Texas store in The Colony, work began Wednesday on filling the 560,000-square-foot retail showroom with appliances, furniture and electronics. The retail showroom will anchor the $1.5 billion, 433-acre Grandscape development and is part of the larger 1.9 million-square-foot Nebraska Furniture Mart, which includes a distribution center.

Justin Brands Inc. to close distribution facility, give 68 workers the boot (Dallas Business Journal)

Berkshire Hathaway-owned Justin Brands Inc. will lay off 68 employees and close an entire distribution facility in Forth Worth. [...] However, it may not be the end of the road for the affected workers. Justin Brands plans to turn over its distribution operations to logistics company GENCO, and the employees will have a chance to apply for jobs there. "Justin is just getting out of the distribution business because it's not our core competency," Lisa Albert, Justin Brands' senior communications manager, told the Dallas Business Journal.

Are Oil Refiners Putting Profits Over Safety in Lawsuit Against Buffett's BNSF Railways? (Fool)

(Commentary on this lawsuit, which was originally mentioned in the 3/16 News Briefs post.)

The reality is, this is about both profits and safety, and it looks like both the railways and petrochemical companies are trying to establish the balance of responsibility. And while BNSF's parent stands to benefit from the surcharge and the potential for more updated tanker cars being bought by refiners, that doesn't mean it's not still beneficial to public safety. At the same time, AFPM has an obligation to its members to challenge this surcharge if it feels it is illegal or unfair, and frankly, whether their motivation is the regulatory precedent, or purely the bottom line, really doesn't matter.

North American Railroads Caught by Speed of Crude-Oil Collapse (Bloomberg)

BNSF Railway Co., the railroad owned by Warren Buffett’s Berkshire Hathaway Inc., posted a 4.5 percent drop in petroleum products in the last four weeks after a gain of 12.4 percent last year. BNSF’s network runs through North Dakota, making it the largest hauler of Bakken oil production. [...] Demand for Bakken crude from U.S. East Coast refineries may decline as the price premium for imported Brent crude narrows. It costs about $2 to $3 a barrel to ship Brent by boat while hauling Bakken crude by train adds as much as $14 a barrel [...]

Is This Warren Buffett's Next Cinderella Story? (Fool)

(Commentary on the acquisition of Van Tuyl Automotive. Terrible headline.)

Operating dealers at scale -- in big groups -- has long been a way for local entrepreneurs to turn modest income streams into fortunes. Bigger dealer groups can get more operating efficiencies around everything from financing to employee benefits, lowering costs and helping to boost those thin margins. Buffett clearly sees this business as one where Berkshire's scale and entrepreneurial values can bring more of those kinds of efficiencies. He also sees it as a business likely to endure for many decades.

First trailer rolls out of new manufacturing plant (PE)

With the sounds of drilling, hammering and sawing in the background, the first trailer has rolled out of Forest River’s new Hemet manufacturing plant. [...] Forest River has hired 80 employes, with hopes to more than double that. [...] Forest River Inc., a Berkshire Hathaway company, bought the Hemet plant in December to open its 67th assembly plant in the nation. [...] Miller said Forest River spent more than $1 million to retrofit the two buildings on the 18-acre site [...]

Should I bet it all on Buffett? (CNN Money)

(Beware the auto-playing video)

I don't think it's a good idea to invest too much of your retirement savings into Berkshire. As a rule, it's not wise to concentrate more than 10% or so of your stock holdings in the shares of any single company. Assuming you have an otherwise well-diversified portfolio, I suppose you could make a case for pushing that percentage to 20% or so for a unique company like Berkshire Hathaway. But I wouldn't go beyond that.

Warren Buffett’s most common misunderstood pieces of advice (Omaha World Herald)

With a net worth of about $71 billion, Berkshire Hathaway Chairman and CEO Warren Buffett is undeniably the most successful investor in history. People often ask him for advice, and he is never short of blunt and witty tidbits. But with all of these pieces of investment advice floating around, many of them without additional context, it can be easy for someone to misconstrue his words. So before you rush out and start taking the Oracle of Omaha’s comments to heart, here is a list of his most common misunderstood pieces of advice.

Nutritionists warn diners to be wary of Warren Buffett's 'junk-food' portfolio (Reuters)

Following Warren Buffett's investment advice may be smart but nutritionists say that eating too many of the "junk-food" products made by companies he has invested in isn't quite as wise. His move on Wednesday to inject Velveeta cheese, Jell-O, Lunchables, Oscar Mayer wieners, and Kool-Aid into his portfolio, stuffs an already amply supplied larder. [...] He told Fortune magazine last month that he's talked to the management of Utz, the Pennsylvania-based snack maker, about potentially buying the company. And with Kraft now under his belt, Buffett could decide to literally drink his own Kool-Aid and push ahead with more such acquisitions.

Airbnb contest: Stay at Warren Buffett's childhood home during Berkshire Hathaway meeting (San Jose Mercury News)

Some fortunate Berkshire Hathaway investors at this year's annual meeting will get the chance to sleep in the same bedroom Warren Buffett did as a boy. The home-sharing service Airbnb is offering a free three-night stay at the Omaha home around the May 2 meeting as a way to promote its services. Shareholders who want to stay at the three-bedroom house must submit short essays and prove they own Berkshire stock.

Berkshire News Briefs - 1/30/15

Berkshire's NetJets Defeats $500 Million IRS Tax Claim (Business Insider)

NetJets Inc, the private jet-sharing company owned by Warren Buffett's Berkshire Hathaway Inc , has defeated a U.S. Internal Revenue Service lawsuit attempting to recoup more than $500 million of unpaid taxes, penalties and interest. [...] The dispute arose from a series of IRS and federal court decisions over nearly two decades, on when and how Columbus-based NetJets should pay federal excise taxes.

Nearly 400 jobs coming to St. Joseph County as RV maker Forest River Manufacturing expands (MLive)

Astute readers may recall a similar story about Forest River also opening a new plant in California two weeks ago. The RV business seems to be booming.

Forest River Manufacturing LLC will spend $7 million to build its first recreational vehicle production site in Michigan over the next three years. The expansion into Michigan, from the company's headquarters in Elkhart, Ind., is expected to mean 396 new jobs over the next five years. [...] According to the Michigan Economic Development Corporation, which announced the project as one of two expansions just approved for Michigan Strategic Fund grants, Forest River is launching new products and plans to build the three facilities in the Village of White Pigeon to house each line.

BNSF expanding Bakken rail capacity (The Bakken Magazine)

BNSF’s North Region has experienced the most rapid growth in recent years and is a destination point for materials that support the production of crude oil in the Bakken. BNSF plans to invest approximately $700 million in the North Region to expand rail capacity and continue the implementation of Positive Train Control technology.

Port labor dispute is big concern for railroads Union Pacific, BNSF (Omaha World Herald)

With rail network congestion improving in some of the nation’s grain belt, Union Pacific Railroad and BNSF Railway are facing another prospective headache: a shutdown of the port complex of Los Angeles and Long Beach, the country’s largest. [...] BNSF spokeswoman Amy Casas said Friday that "unresolved labor issues" at the port complex of Los Angeles and Long Beach have the potential to cut into business at its intermodal terminals in both Los Angeles and San Bernardino. Cranes at the two make 1.5 billion container lifts a year.

MidAmerican earns top J.D. Power ranking (Quad City Business Journal)

Business customers rated MidAmerican Energy Co. the highest for overall satisfaction for the second year in a row, according to the J.D. Power Electric Utility Business Customer Satisfaction Study. The 2015 study measures satisfaction among business customers of 101 U.S. electric utilities. [...] MidAmerican took top honors again among 13 companies in the Midwest Region-Large Segment. Its overall satisfaction index score of 718 was up 21 points from last year, and 13 points ahead of the runner-up.

Berkshire Hathaway moves into Canadian insurance market (Toronto Star)

Commercial insurance company Berkshire Hathaway Specialty Insurance is expanding into Canada and bringing with it big coverage rates set to shake up the industry. The company’s Canadian foray comes just 21 days after it entered the U.S. market. In the past two months, it picked up licenses to operate in Hong Kong and Singapore, signalling an ambitious expansion effort by the insurer, owned by business magnate Warren Buffet and known for its predilection for taking risks and growing quickly. [...] Pete Karageorgos, the director of the Insurance Bureau of Canada, said the expansion is "positive and growth is always good," but he warned that the Canadian insurance market has more regulatory oversight and different coverage levels than that of the U.S.

Buffett-Backed Heinz Sells $2 Billion of Bonds to Pay Down Loans (Bloomberg)

H.J. Heinz Co., the ketchup-maker owned by Warren Buffett’s Berkshire Hathaway Inc. and 3G Capital Inc., sold $2 billion in bonds to repay a portion of its term loans, the company said in a statement. The 10-year second-lien notes were sold at par to yield 4.875 percent, according to data compiled by Bloomberg. [...] "Heinz is a household name with a tremendous history, stable products, they have been cutting costs, and in the end there is a Buffett premium priced in that helped the deal,” said Matthew Duch, a money manager at Calvert Investments in Bethesda, Maryland, which oversees more than $13 billion in assets. “The pricing was fair, and people are going in looking to park cash here."

Warren Buffett Bets on These Top Stocks for 2015 (Fool)

At the end of the third quarter, Berkshire Hathaway -- Warren Buffett's company -- disclosed it had a $17 billion stake in Coca-Cola, a $13.4 billion position in IBM, and roughly $5 billion in Wal-Mart. All signs indicate Buffett will continue to hold them into 2015 and well beyond.

Warren Buffett Stocks: 3 Dividend Aristocrats From Berkshire Hathaway's Portfolio (Fool)

To be considered a Dividend Aristocrat, a company must boast a history of at least 25 consecutive years of uninterrupted dividend growth. Coca-Cola, Procter & Gamble, and Wal-Mart are not only part of that select group, they are also included in Warren Buffett's Berkshire Hathaway portfolio.

Berkshire News Briefs - 8/27/14

Buffett greases $11B Burger King-Tim Hortons deal (CNBC)

Burger King on Tuesday confirmed plans to acquire Ontario-based Tim Hortons for about $11 billion—creating a new company to be based in Canada with combined sales of $23 billion. Berkshire Hathaway Chairman and CEO Warren Buffett is helping to fund the deal by committing $3 billion of preferred equity financing. The news release on the deal did not disclose the terms for Berkshire, which is only a financing source and will not have any participation in the management and operation of the business.

Burger King, Warren Buffett under fire for Canadian inversion deal (LA Times)

Burger King's overall effective tax rate in 2013 was 27.5%, according to its annual report. Tim Hortons' effective tax rate for the same year was 26.8%. "We don’t expect there to be meaningful tax savings, nor do we expect there to be a meaningful change in our tax rate," Burger King Chief Executive Daniel Schwartz told reporters on a conference call. [...] Buffett said Tuesday that it made sense for the combined company's headquarters to be in Canada. “Tim Hortons earns more money than Burger King does,” he said told the Financial Times. “I just don’t know how the Canadians would feel about Tim Hortons moving to Florida. The main thing here is to make the Canadians happy.”

Buffett’s Berkshire to pay $896,000 over reporting violation charges (Fortune)

This story was just breaking when I included a short brief about it in last week's news briefs. Here's a better story about it.

Berkshire Hathaway has agreed to pay a $896,000 civil penalty in order to settle charges that it failed to give federal regulators advance notice before significantly increasing its stake in Chicago-based drywall maker USG last year. [...] The regulators said that Berkshire violated pre-merger reporting laws in December when it failed to provide advance notice before it exchanged $243.8 million of USG convertible notes for 21.39 million common shares, increasing Berkshire’s stake in USG to roughly 28% from about 15%. [...] What’s more, the FTC says the alleged violation came just a few months after Berkshire produced a similar violation when it increased its stake in financial services company Symetra Financial. The FTC chose not to punish Berkshire for that alleged violation, with the commission instead deciding to take Buffett’s firm on its word that it would comply with the Hart-Scott-Rodino Act’s filing requirements going forward.

Squeezed by consumers' focus on fresh foods, Heinz revamps frozen meals (Pittsburgh Tribune-Review)

Known primarily as a maker of ketchup and condiments, Heinz is a major player in the $50 billion frozen food industry, with brands such as Ore-Ida potatoes, Bagel Bites, Weight Watchers Smart Ones, T.G.I. Friday's and Nancy's. But the industry has lately experienced a slump in sales, as consumers give frozen fare a cold shoulder and increasingly choose fresh foods they perceive as healthier. That's put more pressure on Heinz and others in the industry to revamp products.

Heinz recalls four batches of infant food in China (Reuters)

Ketchup maker H.J. Heinz Co has recalled some infant food in eastern China after it was found to contain lead in excess of the allowable limit, the company said on Monday. The move by Heinz comes after food safety regulators in eastern Zhejiang province said on Friday that they had found "excessive amounts of lead" in the company's AD Calcium Hi-Protein Cereal. [...] "This relates to an isolated regional withdrawal in eastern China," company spokesman Michael Mullen said in e-mailed comments to Reuters. "Extensive testing confirmed that no other Heinz baby food varieties are affected."

Rise of discount retailers hits Heinz's Irish business (Irish Independent)

The Irish arm of food giant Heinz has blamed the increasing impact of discount retailers here for contributing to a 8.4% drop in its Irish business last year. [...] The principal activity of the firm is the manufacture of frozen food products for Heinz's manufacturing supply chain hub. The directors also state that revenues were impacted by "the meat integrity issues that received prominent media coverage in the first half of the current period". Part of the firm's business is to sell, market and distribute Heinz products in the Irish market and according to the directors "while in overall market terms the company's core categories have declined consistent with the softness in the Irish grocery trade, the company has grown relative market share".

Berkshire's Probable Q3 Strategy For Chicago Bridge & Iron (Seeking Alpha)

Chicago Bridge & Iron has become a battleground stock in the last several months, following a short thesis issued by Prescience Point in mid-June, which has resulted in declining share prices, including questions about the quality of CBI's accounting statements. It appears the market was and continues to hold Berkshire Hathaway as the final arbiter for this conflict, as CBI's largest shareholder, and the most recent data indicates Berkshire continues to see value in the company. [...] According to the [13F] filing, Berkshire's position increased by about 12 percent, to 9.89 percent of CBI equity during the second quarter. Bloomberg also reported on August 21st that, according to a report to state insurance regulators, Berkshire bought those shares acquired during the second quarter "at an average price of $70.34 over a stretch that ended June 20." This appears to indicate that Berkshire acquired these new shares immediately following the initial decline that followed the Prescience Point report.

China's BYD shares slide 9 pct in Hong Kong after H1 earnings drop (Reuters)

Berkshire Hathaway owns 10% of BYD.

Shares of BYD Co Ltd were set to open 8.7 percent lower in Hong Kong on Monday after it posted a drop in first-half net profit as sluggish sales of gasoline cars offset a surge in its electric vehicle business. [...] BYD saw its first half net profit fell 15.5 percent to 360.7 million yuan ($58.64 million) from 426.9 million yuan a year earlier, dragged down by a 27 percent fall in vehicle sales volume.

Berkshire News Briefs - 8/20/14

The biggest story of the week was Berkshire Hathaway's 2nd Quarter 13F filing, detailing the changes to the company's stock holdings for the period ending June 30. Here's a easy-to-read chart of the portfolio as it stands now.

This story has a run-down of all the changes in the largest holdings:

Tracking Warren Buffett's Berkshire Hathaway Portfolio - Q2 2014 Update (Seeking Alpha)

The only two entirely new positions this quarter were Now Inc. (DNOW), the National Oilwell Varco spin-off, and Charter Communications:

Warren Buffett buying into cable (RBR-TVBR)

Warren Buffet’s Berkshire Hathaway Inc. is again putting money on cable TV consolidation bets made by Liberty Media Corp. Chairman John Malone. The Oracle of Omaha’s investment company has taken a new, $366 million position in Charter Communications Inc., the Stamford, Connecticut-based cable TV company in which Malone’s Liberty Media is the largest shareholder.

A look at three portfolio moves in particular:

What’s Buffett Doing With His Money? (Wall St. Cheat Sheet)

First, Berkshire added about $340 million worth of IBM. This is not a huge transaction for Buffett, but he is adding this to an already substantial stake now valued at over $13 billion. [...] Second, Buffett has been buying Wal-Mart. While he only bought a small position in the second-quarter, I suspect that he has been buying more recently as the stock has been weak. [...] Finally, Buffett has been adding shares of Suncor — a Canadian oil company — while selling shares in ConocoPhillips and its recent spinoff Phillips 66. This is an interesting move and it probably reflects Suncor’s higher growth and the fact that Canada has a lower — 15 percent — corporate tax rate than we have in the U.S.

Berkshire Hathaway stock tops $200,000 (Yahoo/AP)

Berkshire Hathaway Class A stock, which first topped $1,000 in 1983, on Thursday surpassed $200,000. [...] The stock has had its ups and downs. The Class A shares first hit six figures in October 2006 and peaked at $151,650 in December 2007, when the Great Recession began. They fell as low as $70,050 in March 2009. On Thursday, they reached an all-time high of $202,454.99. Berkshire Hathaway has come a long way since Buffett's investment partnership started buying shares for $7 and $8 apiece in 1962. At that point, Berkshire was a New England textile company.

How Buffett Is Changing The Future Of Berkshire's Float - From Insurance To Uncle Sam (Seeking Alpha)

Insurance float is a concept that Warren Buffett has clearly explained as a source of enduring value for Berkshire Hathaway Inc. However, there are other sources of float that are becoming more important to Berkshire over time, but are not well understood by investors. Deferred tax liabilities (DTLs) are one area worthy of focus, and while I know that tax is boring, you will realize Buffett is truly a genius when it comes to float, so bear with me as I try my best to explain how it works, as it is complex. The first idea that might spring to mind for many people on deferred taxes is unrealised capital gains - to be clear, the focus of this article extends deeper than just this. Read on...

Berkshire Unit Said to Hires Two AIG Executives in Asia (Bloomberg)

Warren Buffett’s Berkshire Hathaway Inc. hired two Asia-based executives from American International Group Inc. as part of a push to expand its presence in the region, a person familiar with the matter said. Marc Breuil, AIG’s head of country operations in Hong Kong and Taiwan, and Marcus Portbury, the regional head of casualty insurance, are joining Omaha, Nebraska-based Berkshire’s specialty insurance business, said the person, who requested anonymity because there was no public announcement. Breuil will lead the company’s efforts across Asia and Portbury will be head of casualty in the region, according to the person.

Berkshire to pay U.S. civil fine for violating reporting rules (Yahoo / Reuters)

Warren Buffett's Berkshire Hathaway Inc has agreed to pay an $896,000 civil penalty to the U.S. government for having failed to timely report that it had boosted its voting stake in building products company USG Corp . [...] The government said Berkshire failed to made the necessary filing before swapping some USG convertible notes into common stock last Dec. 9. Berkshire made a corrective filing on Jan. 3, 2014, the complaint said.

Buffett Reveals Dow Chemical Position! (From 2009! It Was Old News!) (WSJ)

On a day when big hedge-fund managers were disclosing their latest positions, Warren Buffett’s Berkshire Hathaway Inc. alerted regulators Thursday to a big investment in Dow Chemical Co. It’s a position the company has held since 2009. The holding was hardly a secret: It was trumpeted by Dow at the time as one of the reasons it was able to complete a big acquisition, and Berkshire and Dow have discussed it in securities filings and public statements since. But Mr. Buffett’s firm, a sprawling conglomerate that famously employs just 25 people in its home office, admitted Thursday that a required “13G” form “was not timely filed” back when it should have been in 2009.

Vacant plant in Harrisburg has a new owner (KMTR 16)

The Monaco Coach plant has sat empty for months, but that will soon come to an end. According to Harrisburg [Oregon] City Administrator Brian Latta, RV maker Forest River Inc. has purchased the plant. Paul Eskritt with Forest River said the plant will start work in September with about 30 employees, most of whom they hope to hire locally. They plan to expand employment this winter with a second production line.

BNSF, CP improve rail service as harvest test nears (Journal of Commerce)

BNSF Railway and Canadian Pacific Railway say they are steadily reducing a backlog of grain shipments, but agricultural shippers warn the true test of whether they can handle the upcoming harvest will come quickly, in a week or two. Meanwhile, pressure from Washington, D.C., is mounting on the two railroads to make greater progress in reducing a backlog of shipments caused by the harsh 2013-2014 winter and a surge of freight. Following the U.S. Surface Transportation Board directing in late July that BNSF and CP post weekly updates on backlogged grain shipments, the U.S. regulatory agency said it will hold a public hearing on the issue in early September in Fargo, North Dakota.

Warren Buffett tips Heinz Australia into red (Australia Financial Review)

Warren Buffett, the second richest person in the United States, has inadvertently triggered a tumble into the red by the Australian operations of baked beans, baby food and soup maker Heinz. A heavy restructuring of the balance sheet at Heinz’s Australian operations and a recalibration of tax losses caused the Australian business known as Heinz Wattie’s to tumble to a loss of $12.3 million in its latest financial year.

Huge Geico Insurance Banner Falls on Fremont Home (NBC Bay Area)

One Bay Area couple can now say for certain their house is covered by insurance. A 4,000-square-foot Geico insurance banner being towed by a plane came loose and fell directly on their house Friday in Fremont.

Berkshire News Briefs - 6/18/14

Ford Teams Up With Berkshire Hathaway's Heinz to Use Tomato-Based Products in Vehicles (Fool)

In the cleverly titled announcement You Say Tomato; We Say Tom-Auto, Ford today announced it has partnered with H.J. Heinz to seek to find a way to use tomato fibers in vehicles. [...] The press release highlighted that researchers at both Ford and Heinz are collaborating to see if tomato fibers -- like dried tomato skins -- can be used for the small storage bins in vehicles or the wiring brackets. [...] Heinz began a partnership with Ford in 2012 as it sought environmentally friendly ways to reuse the peels, stems, and seeds from the 2 million tons of tomatoes used to make Heinz Ketchup each year.

Buffett Ready to Double $15 Billion Solar, Wind Bet (Bloomberg)

Warren Buffett briefly lost track of how many billions of dollars his Berkshire Hathaway Inc. is spending to build wind and solar power in the U.S. That didn’t stop him from vowing to double the outlay. Describing the company’s increasing investment in renewable energy at the Edison Electric Institute’s annual convention in Las Vegas yesterday, Buffett had to rely on a deputy, Greg Abel, to remind him just how much they’d committed: $15 billion.

This is Berkshire Hathaway Inc.'s Best Operating Business (Fool Video)

Which Berkshire Hathaway business had the highest EBIT margin in 2013? This might sound like trivia, but it's not -- facts like these can provide insight into some of these companies, and tell you where they might move in the future. In the following video, Motley Fool banking analysts David Hanson and Tyler Riggs discuss this week's "Stock Quiz" and why Berkshire Hathaway is looking to its railroad executive for more answers.

Fight over crude-oil transports through California intensifies (Sacramento Bee)

The fight over the secrecy of crude-oil rail shipments through California intensified Monday. Responding to a federal order, BNSF Railway Co. acknowledged in a report to state safety officials that it’s transporting flammable Bakken crude oil in California, but it continued to vehemently resist releasing information about the shipments to the public. Such information is a trade secret, and only fire responders should be allowed to know, the company says.

Northstar line to resume weekend service after an off-rail Friday (Minneapolis Star-Tribune)

About 2:15 a.m. Friday, 16 empty freight cars in a BNSF train jumped the tracks near Hwy. 10, Alpine Drive and The Links at Northfork golf course in Ramsey, according to BNSF spokeswoman Amy McBeth. No one was hurt. [...] The derailment halted all rail traffic on one of BNSF’s busiest lines as crews cleared the tracks and made repairs. Freight trains were rerouted where possible, McBeth said. [...] Over the past few months, multiple Northstar delays have been blamed on a host of causes — an increase in the number of oil and freight trains, extreme weather and sometimes even track upgrades.

Copper pollution caused life-threatening illnesses in Sauget (Belleville News-Democrat)

A copper recycling company in Sauget [Illinois] allegedly released cancer-causing toxins into the environment for more than 80 years, according to recently filed lawsuits. The lawsuits represents 99 people who have lived near the Cerro Flow Products facility in the 3000 block of Mississippi Ave. in Sauget. The residents are suing Cerro and Marmon Group, a management company, for allegedly causing health conditions and contaminating the environment.

The Freedom Quit Smoking System Blog Praises Legendary Berkshire Hathaway Owner and Financial Genius Warren Buffett for His Modern Day Stance on Tobacco Investments (Digital Journal)

Buffett's reservations about tobacco companies have less to do with investment risk than reputational risk. When Salomon Brothers -- owned by Buffett at the time -- made a bid for RJR Nabisco in the late 1980s, CEO John Gutfreund, asked Buffett to participate in the deal. But Buffett protested, saying: I'm wealthy enough where I don't need to own a tobacco company and deal with the consequences of public ownership, quoted in "Barbarians at the Gate". In April 1994, according to the Chicago Tribune, Buffett told stockholders investments in tobacco are "fraught with questions that relate to societal attitudes and those of the present administration...I would not like to have a significant percentage of my net worth invested in tobacco businesses," said Buffett.

Berkshire News Briefs - 5/13/14

Greg Abel: The Next Oracle of Omaha? (Bloomberg)

For years, Abel worked in the shadow of his business partner, David Sokol, who was widely thought to be in the race until he resigned in 2011 amid a stock trading scandal. Abel is not in the shadows now. He led Berkshire’s second-biggest acquisition last year, paying $5.6 billion for Nevada’s largest electric utility, NV Energy. And he was named to the board of ketchup maker H.J. Heinz, which Berkshire took private with partners in a $23.3 billion deal in 2013.

NRG Energy Inc. and MidAmerican Energy Announce Completion of World's Largest Solar Farm (Fool)

Clocking in at 290 MW, the NRG Energy, and MidAmerican Energy Agua Caliente joint venture is a new record -- the largest fully operational solar photovoltaic facility in the world. [...] The Arizona solar facility spans 2,400 acres between Yuma and Phoenix, and is capable of powering 230,000 homes at peak capacity. As is most often the case with utility-scale solar projects, all electricity has already been sold to PG&E under a 25-year power-purchase agreement.

Berkshire to Buy SNC’s AltaLink in Buffett Energy Wager (Bloomberg)

Berkshire Hathaway Inc.’s energy unit agreed to buy SNC-Lavalin Group Inc.’s AltaLink for about $C3.2 billion ($2.9 billion) in cash to expand in electricity transmission in western Canada. The deal adds 280 substations and about 12,000 kilometers (7,500 miles) of transmission lines, according to a statement yesterday from the power unit at Warren Buffett’s Berkshire. [...] Founded in 2002, AltaLink owns more than half the transmission grid in the Canadian province of Alberta and serves 85 percent of its population. Net income for the unit was C$161.6 million on revenue of C$534 million last year, according to a regulatory filing. AltaLink said in a separate statement that it will operate under its current name within the Berkshire business and continue to be based in Calgary.

1 Warren Buffet Business Just Revealed How Utilities Can Unlock the Power of SolarCity (Fool)

Even on a good day when utility executives are in a chipper mood, they will probably still describe SolarCity as a "nuisance". The company is the most visible representation of the distributed solar movement, and for many utilities it is a disruption of the business model they have become accustomed to over many years. Several utilities have taken up opposition to distributed solar, but one of Warren Buffets recent acquisitions, NV Energy, is welcoming SolarCity in to Nevada with open arms -- but not for the reason you may think. Let's take a look at what this Berkshire Hathaway subsidiary is doing to go against the grain and explore why this may be happening.

10 Great Buffett Quotes From Berkshire Hathaway Inc.'s Annual Meeting (Fool)

Habits are such a powerful force in everyone's life, including good financial habits. Digging yourself out of the holes that financial illiteracy can cause can take a lifetime. ... A big problem is adult financial literacy. It's harder to be smarter unless the schools intercede. A lot can be done on TV and the Internet, but it is really important to have good financial habits, and anything the school system can do will help.

It's Time to Break Up Buffett's Berkshire Hathaway: The Parts Are Worth More Than the Whole (Fool)

If Warren Buffett announced a program of spinning off and distributing most of his operating companies to shareholders, Berkshire stock would soar in value. As Buffett has noted, the fair value of Berkshire is much higher than it's book value. Spinning off the conglomerate's many subsidiaries would bring this value into the light of day.

1 Overlooked Secret to Warren Buffett's Phenomenal Success (Fool)

What's interesting when you study Buffett's portfolio is while he may not like paying dividends, he sure likes receiving them. Buffett's eight largest holdings all together pay Berkshire more than $1.8 Billion in dividends. [...] Scale matters in total returns, IBM's share price has not done all that much in the short time Berkshire has owned its stake, but I think $258 million (and growing) yearly dividend income gives at least some comfort back in Omaha. Berkshire earns over $1 Billion each year from Wells Fargo and Coca Cola alone. That is almost $3m each day. Dividends add life to your portfolio.

Heinz Factory Severance Cost Rises to $93 Million (Bloomberg)

HJ Heinz Co., the ketchup maker taken private by Berkshire Hathaway Inc. and 3G Capital, projected severance cost from factory closures will climb to $93 million as the company shutters two European plants. The new figure was disclosed in a first-quarter regulatory filing today and compares with the $63 million sum listed in the annual report for 2013. Heinz said in February that it was planning shutdowns in Seesen, Germany, and Turnhout, Belgium, after last year announcing closures in Florence, South Carolina; Pocatello, Idaho; and Leamington, Ontario.

EcoWater Systems expands green product portfolio (Water Technology)

EcoWater Systems®, a Marmon Water/Berkshire Hathaway Company, has announced the expansion of its commercial business product line through the acquisition of the Controlled Hydrodynamic Cavitation (CHC) technology and operations from VRTX Technologies of Schertz, Texas, according to a press release. CHC is a proven environmentally-friendly water treatment technology used in HVAC, process cooling and refrigeration systems to effectively control scale, biological growth and corrosion without the use of chemicals, the release reported. Adding CHC technology to a cooling tower saves energy, reduces water consumption and maintenance costs and minimizes or eliminates sewer discharge volume, noted the release.

Dairy Queen CEO: 'People Need To Be Paid A Fair Wage' (HuffPost)

“People need to be paid a fair wage,” Dairy Queen CEO John Gainor told CNN’s Poppy Harlow. [...] And in a clue to his own thinking about the controversy, Gainor told CNN that low wages made it hard to keep good employees. “It takes a lot of time to train people,” he said, speaking at a convention for Dairy Queen parent company Berkshire Hathaway, the conglomerate owned by Warren Buffett. “You want to make sure you’re paying a very good wage, otherwise you have a lot of turnover.”

Berkshire Subsidiary Briefs - 4/29/14

How Brooks Reinvented Its Brand (Inc.)

It is hard to believe that Brooks, known for is brand ethos 'Run Happy,' was on the brink of bankruptcy in 2001. A white-hot brand in the '70s and '80s, Brooks made shoes and apparel for a variety of sports including basketball, tennis, and football, until 2001 when Jim Weber came on as CEO. With the company losing money on many of its product lines, Weber decided to undertake a massive strategy change. He narrowed Brooks's focus to running, cutting products that produced $30 million in annual revenue. The move paid off. According to Weber, in the last 13 years the Seattle-based company has grown 18 percent compound, and is expected to crack $500 million in revenue this year.

NetJets Nearing Official Launch in China (Business Wire)

NetJets Inc., a Berkshire Hathaway company and the worldwide leader in private aviation, announced today that it is hiring employees in China, partnering with vendors and positioning aircraft in the market so it can quickly begin operating its NetJets China business once government approval for the operating certificate is finalized – expected mid-year in 2014. [...] The company is also expanding relationships with key vendors, such as Savoya, one of the world’s finest chauffeured ground transportation service providers and the industry leader in applying technology to deliver precise and reliable service to every passenger.

New Heinz Co. owners offer buyouts to all HQ workers (Dallas News / AP)

The new owners of H.J. Heinz Co. have offered buyouts to all workers in Pittsburgh, where the ketchup-and-food giant has been based for decades, but insist the offer doesn’t signal a plan to move the company’s headquarters. Instead, Heinz officials said the buyout is being offered because the new owners Berkshire Hathaway and Brazilian investment firm 3G Capital recognize the company’s new culture might not be “the perfect fit” for longtime Pittsburgh-based employees. Heinz officials said any workers who quit will be replaced, leaving the company with the same number of workers in Pittsburgh. The buyout offers, which begin at six months’ severance pay and increase depending on years of service, were sent out last week to all 775 Pittsburgh employees.

Google Signs Renewable Energy Deal With MidAmerican Energy (RTT News)

Google Inc. has signed a renewable energy deal with MidAmerican Energy Holdings Co., the two companies said Tuesday. Under the deal, MidAmerican Energy, a unit of billionaire Warren Buffett's Berkshire Hathaway Inc. will supply up to 407 megawatts of wind-sourced energy to Google's data center in Council Bluffs, Iowa. The deal with MidAmerican represents Google's seventh and largest renewable energy purchase to date, bringing the total amount of renewable energy that the company has contracted for to over one gigawatt, or 1,000 megawatts. The wind power for the Iowa data center will come from several wind projects that are part of MidAmerican Energy's Wind VIII program, an initiative under which that company will bring 1,050 megawatts of new Iowa wind power online by the end of 2015.

Warren Buffett Thinks This is The Most Important Business in Our Economy (Fool)

BNSF carries about 15% (measured by ton-miles) of all inter-city freight, whether it is transported by truck, rail, water, air, or pipeline. Indeed, we move more ton-miles of goods than anyone else, a fact establishing BNSF as the most important artery in our economy's circulatory system. Its hold on the number-one position strengthened in 2013.

N2Power Announces Agreement with TTI Europe, Inc. to Partner as N2Power’s Master Distributor for Europe(BusinessWire / MarketWatch)

N2Power, a division of Qualstar Corporation, is pleased to announce its distributor agreement with TTI Europe, Inc. (TTI). TTI will handle all coordination of orders, shipments, and inventory of all N2Power products throughout Europe to better serve our European distributor and customer base, as well as promoting the adoption of N2Power products in new designs. [...] TTI, Inc., a Berkshire Hathaway company, is the world’s leading specialist distributor of passive, connector, electromechanical, discrete and power components.

Johns Manville Announces Expanded Mineral Wool Availability in Canada (BusinessWire / MarketWatch)

Johns Manville (JM), a Berkshire Hathaway company and leading building products manufacturer, has added commercial and residential mineral wool to its full spectrum of insulation products, giving Canadian customers more options, security and flexibility when sourcing mineral wool to meet project demands. JM mineral wool insulation offers a variety of performance benefits in both commercial and residential construction. With a high melting point in excess of 109C, mineral wool can help delay fire spread, create quieter buildings and homes, increase privacy between rooms and reduce heating and cooling costs by keeping structures warm in winter and cool in summer.

R.C. Willey opens largest store in Draper (Furniture Today)

Even before today’s grand opening, R.C. Willey’s new and largest store here got off to a quick start. The Salt Lake City-based Top 100 retailer, part of Berkshire Hathaway’s furniture division, soft-opened the 160,000-square-foot store a couple of weeks early “to make sure we get all the bugs worked out,” said President Jeff Child, and it immediately exceeded expectations. Sales over the first four days of the soft opening approached $1.5 million, he said, adding that R.C. Willey is hoping the store will do $65 million to $70 million in annual sales. That would be more than double the volume of its nearby Taylorsville location, which closed with the Draper opening.

Future Metals Opens Dayton, Ohio Service Center (BusinessWire / Yahoo) Thanks to writing these news posts for over two years, I can now spot a Berkshire Hathaway subsidiary from 500 yards away. But even I can't begin to keep track of every sub-subsidiary that Marmon owns. This one is new to me.

Future Metals, a worldwide specialty metals distributor to the aerospace manufacturing and maintenance industry, recently opened its ninth metals service center. [...] The new Dayton facility, which officially opened its doors in January 2014, provides aerospace manufacturing and aftermarket customers in the Midwestern United States with localized inventory and just-in-time deliveries. Products being carried include stainless, nickel, titanium and aluminum tubing as well as extrusions, sheet and bar products. [...] Future Metals and its affiliate companies, including Marmon/Keystone LLC, are Marmon Distribution Services/Berkshire Hathaway companies and members of The Marmon Group [...]

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%.