Berkshire News Briefs - 1/10/18

Berkshire Hathaway Inc. News Release

On January 9, 2018, Berkshire Hathaway Inc.’s Board of Directors voted to increase the number of directors comprising the entire Board of Directors from twelve to fourteen. Gregory E. Abel and Ajit Jain were then elected to serve as Directors to fill the resulting vacancies on the Board of Directors. In connection with their election to the Board of Directors, Warren E. Buffett, Berkshire Hathaway’s Chairman and CEO, appointed Mr. Abel to be Berkshire Hathaway’s Vice Chairman – Non-Insurance Business Operations and Mr. Jain to be its Vice Chairman – Insurance Operations. [...]

Warren Buffett: 'I feel terrific,' and moves toward succession are not related to my health

Warren Buffett told CNBC on Wednesday the appointment of two new vice chairs at Berkshire Hathaway is "part of a movement to succession over time," and has nothing to do with any change in his health. [...]

"They are the key figures," Buffett said. "They both have Berkshire in their blood."

"There is not a horse race at all," he added. "They both have their areas of specialty."

Buffett and his 94-year-old longtime partner, Charlie Munger, are staying in their respective positions as chairman and CEO and vice chairman. [...]

Speculation had centered on Abel and Jain as possible successors, and Buffett told CNBC that elevating them would have also made sense five years ago. He said he decided about six weeks ago to make the move, saying to himself, "why not now." [...]

It was Munger's idea for Abel, Jain, and himself to all have vice chair titles, Buffett said. [...]

Warren Buffett wins $1M bet against hedge funds and gives it to girls' charity

In 2007, the famed billionaire investor made a $1 million bet that an S&P 500 stock index fund would outperform a basket of hedge funds over the course of a decade.

The index fund returned 7.1% compounded annually over the 10-year period, easily beating the 2.2% average return of a basket of funds picked by asset manager Protégé Partners, according to The Wall Street Journal.

Buffett promised to give the prize money to his local affiliate of Girls Inc., a non-profit organization that provides programs designed to inspire "all girls to be strong, smart and bold." [...]

Berkshire Hathaway could gain $37 billion from GOP tax cuts

Berkshire Hathaway, the conglomerate led by Warren Buffett, stands to gain an potential $37 billion from the GOP's tax cuts, according to new research from Barclays.

"We now estimate Berkshire Hathaway's 4Q book value could be boosted by about $37 billion resulting from the US corporate tax reform due to a decline in its deferred tax liability," analysts at the firm wrote in a report on Monday.

The authors also said the reduction in the corporate tax rate could lift the company's earnings power by as much as 12 percent "in 2018 and beyond," and it could repatriate some foreign profits and use it for investment. [...]

Warren Buffett Shares the Secrets to Wealth in America

I have good news. First, most American children are going to live far better than their parents did. Second, large gains in the living standards of Americans will continue for many generations to come. [...]

This game of economic miracles is in its early innings. Americans will benefit from far more and better "stuff" in the future. The challenge will be to have this bounty deliver a better life to the disrupted as well as to the disrupters. And on this matter, many Americans are justifiably worried. [...]

Warren Buffett's Love for Burger Joints Is Landing Him Billions of Dollars

The financing deal gives RBI the option to redeem some, or all, of Berkshire's preferred stock. It indicated it would fully redeem the stake, plus dividends that have accrued from it. The redemption rate alone is 9.9%, which means Buffett is getting an effective interest payment of $297 million on the original $3 billion in financing.

On top of that are the dividends, which are hefty at 9% per year. This adds $810 million onto his return, which doesn't factor "an additional amount, if necessary, to produce an after-tax yield as if the dividends were paid by a U.S.-based company," according to a recent Berkshire regulatory filing.

On top of that, Buffett's investment vehicle still owns that RBI stake derived from the warrant. At the most recent closing stock price, that holding would be worth over $523 million, even after we net out the exercise price. [...]

Brooks Needs Runners Who Hate to Run

Within a few years of Weber taking over, Brooks became the best-selling brand at specialty stores. Then Fruit of the Loom Inc., which is owned by Berkshire Hathaway Inc., bought the company in 2006. Brooks flew under Berkshire’s radar for a couple of years until Todd Combs, one of Warren Buffett’s investment managers, brought it to his attention. Combs is a triathlete; Ted Weschler, another top Berkshire investment manager, is a marathoner. Buffett may not have realized it, Combs said, but this random shoe company was doubling in size every three years.

Soon after, Buffett met with Weber, who explained his all-­running-only-running strategy. Buffett liked the idea of focusing on a niche market. “He thinks long-term,” Weber says of Buffett, who told him: “Whatever you do, just make the brand stronger.”

So that’s what Weber did. Buffett was so pleased by Brooks’s success that in 2012 he spun it off from Fruit of the Loom, which didn’t have footwear experience. As Berkshire holdings go, Brooks is small, accounting for a sliver of the $24 billion it made in 2016. But for Buffett, it appears to be a source of pride. [...]

Q&A with Lubrizol’s Eric R. Schnur

Q: There are numerous references in company literature to values handed down from its founders. What are those values?

A: Fundamentally, our corporate philosophy comes down to three things. It’s about people and how important they are. I talk to employees at all of our major locations and ask them about the company, its culture and what they would never want to change. The first answer always is our focus on people. They feel the company really cares about people. This is something I felt walking through the door that first day at the pilot plant. There is a focus on safety. You cannot care deeply about people and expect them to work in an unsafe environment. We operate chemical plants. Those can be unsafe environments if you don’t invest in them and have policies and procedures. The last is business and corporate ethics.. Never do anything illegal. When you have thousands of people around the world, that doesn’t mean everyone is acting perfectly every single moment of the day. But we are vigilant about it. We do things the right way. It isn’t just a slogan. We want to move faster and drive quicker decision making, all the things companies our size talk about. But the focus always is on people, ethics and safety. [...]

Berkshire Hathaway subsidiary to remove idle crude oil rail tankers from New York forest preserve after governor's objections

A Berkshire Hathaway subsidiary has decided to remove its idle crude oil rail tankers from a New York forest preserve after the state’s governor objected to their storage there.

Chicago-based Union Tank Car said Tuesday that all 65 cars it has in the Adirondack Forest in northeast New York will be removed by mid-January. [...]

Russell Brands announces layoffs

A total of 75 permanent employees of Russell Brands LLC were notified Friday that they would be laid off. [...] The reduction in force is expected to drop the number of people employed at what is now primarily a distribution center down to around 250 people. [...]

Just six years ago, Russell Brands still had 750 employees in Alexander City. Earlier this year when it was announced that the company would cease manufacturing of athletic team uniforms, company officials said it was unclear how the move would impact the estimated 500 Russell employees who were working in Alexander City at that time. [...]

Oriental Trading CEO who turned company into profitable part of Berkshire dies at 56

Sam Taylor, who guided Oriental Trading Co. from bankruptcy into one of Berkshire Hathaway Inc.’s local success stories, died more than a year after being diagnosed with a lethal form of brain cancer. He was 56. [...]

Taylor came to Omaha with his family — wife Stephanie and daughters Ashton, Celine and Mallory — in May 2008 to take over the troubled company, which had been saddled with high debt through a series of buyouts and refinancings. [...]

With the turnaround underway, in 2012 Taylor successfully pitched Oriental Trading to Berkshire CEO Warren Buffett, explaining how its La Vista distribution system, catalogs, online sales system and staff could become a profitable part of Berkshire. [...]

Berkshire News Briefs - 12/27/17

A Year In Berkshire Hathaway's Tech Stocks

Though he has since changed his mind, Buffett famously avoided tech stocks for more than the first 30 years of his investing career. In an interview from the mid-1980s, Buffett said that the technological revolution had “gone right past him,” and he hadn’t found any tech companies he understood.

“It’s OK with me. I don’t have to make money in every game,” he said.

In recent years, Berkshire has made room for some of the sector’s companies, making it the portfolio’s third biggest weighting. Buffett holds IBM, and one of his deputy investors he hired to manage portions of the portfolio bought VeriSign. Both Buffett and one of Berkshire’s mangers also own a stake in Apple.

As 2017 draws to a close, Berkshire has a net profit on tech, though IBM has floundered. [...]

A Year In Berkshire Hathaway's Financial Stocks

Warren Buffett achieved a significant feat in 2017 – each of his financial stocks looks to be ending the year in the green.

Wells Fargo & Co. gained 12.3%, Bank of America Corp. rose 35% and American Express Co. increased 35.6%. The behemoth institutions were outdone by several of their smaller peers in his portfolio, however. The best, Moody’s Corp., rose 60.9%, with MasterCard following, up 47%, and Visa Inc. up 44.6%.

Some of the weaker performers were Synchrony Financial, increasing 6.8%, US Bancorp, increasing 7.9%, and Goldman Sachs Corp., increasing 8.3%. [...]

Investment Advice From Berkshire's Todd Combs and Ted Weschler

Warren Buffett (Trades, Portfolio) is slowly winding down his management of Berkshire Hathaway’s investment operations. Even though he is still undoubtedly the leading of the group, his two investing lieutenants Todd Combs and Ted Weschler have gained more independence in recent years. [...]

So far, interviews given by these two managers have been limited but they have spoken in the past on their investment process. I thought it would be interesting to gather some of this insight from two of Buffett’s most trusted employees. [...]

State taking legal action to prevent railcar “dumping ground” in the Adirondacks

Gov. Andrew Cuomo said New York is taking legal action to halt a rail operator’s plan to store thousands of train cars indefinitely in the Adirondack Park.

The move represents what the governor calls “the first step in a series of aggressive actions” to stop Iowa Pacific Company’s from storing old oil tanker cars in the state’s protected wilderness. [...]

The state is also calling on Berkshire Hathaway — owners of the Union Tank Car Company, which owns the cars being stored — to immediately stop the storage plan.

Gov. Cuomo will announce these legal actions and the long-term plan to remove the railcars from the Adirondacks during his upcoming State of the State Address on January 3. [...]

Roseville-based toy company's stress on learning with fun pays off at Christmas time

Since 1990, MindWare has been creating brainy toys for kids of all ages, as its tag line says.

It has also become a reliable innovator for retailers with products like Qwirkle, Keva Structures building planks and Science Academy kits for making slime, lip balm and volcanoes, as well as hundreds of other toys and games. [...]

MindWare experienced double-digit growth this holiday season, consistent with most years past, the company said. That’s significantly higher than the 5 percent growth the toy industry as a whole is experiencing, according to the NPD Group. [...]

The company’s acquisition by Berkshire Hathaway’s Oriental Trading Company in 2013 jump-started its marketing, web development and customer service. [...]

Buffett's investment helped drive M&T's growth

[...] In the case of M&T Bank Corp., it was 1990, and the Buffalo-based bank had the opportunity of a lifetime: the two dominant financial institutions in Buffalo, Empire of America and Goldome, had been seized by federal regulators during the savings & loan crisis. Now the regulators were looking for someone to buy the failed banks.

M&T and KeyCorp, then based in Albany, decided to divide the spoils between them. But M&T "needed some capital in order to be able to be positioned to do the deal," bank spokesman C. Michael Zabel said.

So Buffalo News Publisher Stanford Lipsey introduced his friend M&T CEO Robert G. Wilmers, to his longtime patron: Warren Buffett. [...]

Today, Berkshire is M&T's sixth-largest shareholder, with 3.56 percent of the bank's stock as of Sept. 30. That's 5.382 million shares, worth nearly $920 million.

Shares of Warren Buffett's Berkshire Hathaway hit $300,000 — each — for the first time

One "A" share of Warren Buffett's Berkshire Hathaway will set you back about $300,000 as of Monday.

The conglomerate's most expensive share class touched that milestone for the first time in the morning before dipping back. It closed trading on Monday at $299,360, up 1.04 percent. It has outperformed the S&P 500 this year — rising more than 22 percent versus the index's 20 percent gain.

One share would get you roughly two of Tesla's most expensive car models available now.

If that lofty price makes you break out in hives, the company's B shares closed trading at $199.34, also up around 22 percent for the year. [...]

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 - 4/10/17

CC BY-SA 3.0, Link

Berkshire insurance unit sues Goodyear over asbestos claims

Berkshire said Goodyear claimed to have in 2008 exhausted a policy from another insurer for the asbestos claims, but waited until November 2015 to seek reimbursement from Berkshire for "several millions of dollars" under an "excess" policy.

It also said Goodyear had never asked for help in defending against the claims prior to November 2015.

About 62,000 claims are pending against Goodyear in states including Florida, Maryland, New York, Pennsylvania and Texas over alleged exposure to asbestos-containing products as floor tiles, furnace hoses, gaskets and heat shields, Berkshire said.

Berkshire Hathaway affiliate buys Prism Plastics

Precision automotive molder Prism Plastics Inc. has been sold to a subsidiary of Marmon Engineered Components Co., according to an announcement from Altus Capital Partners, the investment firm that had owned Chesterfield, Mich.-headquartered Prism along with its founders since June 2014.

Marmon is an affiliate of Berkshire Hathaway Inc., the publicly traded conglomerate headed by Warren Buffett.

Under Altus ownership Prism has undertaken several growth initiatives, including the June 2016 acquisition of Tech Molded Plastics Inc. of Meadville, Pa. That move doubled Prism’s size and added in-house toolmaking capabilities. [...]

Berkshire subsidiary on renewable energy push across the West

PacifiCorp, a division of Berkshire Hathaway Energy, issued a three-year, $3.5 billion plan for its renewable energy system from Wyoming to California.

The six-state plan will add 900 megawatts of capacity by upgrading generators with larger blades and new technology, build a 140-mile-long power line in Wyoming and add 1,100 megawatts of new wind projects. [...]

The plan includes adding another 1,000 megawatts of solar generators in the states by 2036. [...]

Berkshire Hathaway's Media Group Cuts 289 Newspaper Jobs Nationwide

BH Media Group, the newspaper division of Warren Buffett’s Berkshire Hathaway Inc., announced yesterday that it was cutting 289 jobs at its newspapers across the country yesterday. The cuts included the elimination of 108 jobs that currently are vacant.

The reasons for the job losses are depressingly familiar in the newspaper industry: loss of circulation and advertising revenue, lagging revenue from the digital side of the business.

Terry Kroeger, president and CEO of BH Media, sent a memo to employees yesterday. "While more readers than ever turn to our digital products, our digital revenue is not growing fast enough yet to offset print revenue losses from both advertising and circulation," he wrote. "Therefore, we need to cut our expenses." [...]

The Buffett Series – Thinking About Competitive Advantage

A key requirement for a company to earn high returns on capital over a long period of time is to have a competitive advantage, commonly referred to as a 'moat'. Mr Buffett addresses the issue of competition in his 1993 letter where he talks about the Nebraska Furniture Mart, a businesses he acquired from Rose Blumkin [aka Mrs B.] in 1983. Under the motto "sell cheap and tell the truth," she worked in the business until age 103.

Nebraska Furniture Mart is a pretty simple business, it sells furniture, flooring and home appliances. It's easy to understand and it's unlikely to be subject to a lot of change. In ten years time it will still be selling furniture. [...]

Berkshire Hathaway: An In-Depth Look At Normalized Return On Equity

How much would you pay for a $298 billion perpetual bond with an 8.5% coupon and $66 billion of additional cash? While this seems like an odd question, I would argue it is the one you're trying to answer when choosing to invest, or not invest, in Berkshire Hathaway. No, Berkshire common stock is not a bond; however, as I will try to demonstrate, while Berkshire's stated GAAP earnings are volatile, its underlying return on shareholders' equity is highly consistent, not entirely dissimilar to a bond coupon. This analysis will disaggregate Berkshire's constituent assets and liabilities in its various business segments and the earnings attributable to those segments. Doing so will allow us to uncover what I will term a "steady-state" return on equity. With that return in hand, we can then determine the "yield" and subsequent value to assign our "bond."

Steelworker wins $100,000 in Buffett's March Madness bracket

[Dwayne] Johnson, who works in a steel factory in Huntington, West Virginia, was sitting on his couch Saturday afternoon when Buffett called to tell him that, with 31 out of 32 correct predictions in his March Madness bracket, he'd be winning $100,000 of the billionaire's money. (If Johnson had correctly called South Carolina's victory over Marquette, he would've received a cool $1 million.) [...]

Johnson says the $105,000 in winnings - which include an additional $5,000 from his employer, Precision Castparts - will help him pay off credit card debt and buy a new car. He also plans to save six months' worth of expenses in case he loses his job, something he says he has worried about in recent months after widespread layoffs at the steel mill where he has worked for nearly 10 years. He makes $21.13 an hour as a welder at the company, which Buffett's Berkshire Hathaway purchased two years ago for nearly $32 billion. [...]

Cherry Coke, China and Warren Buffett: 'He's selling well'

People in China are coming face to face with Warren Buffett's love for Cherry Coke.
A cartoon rendering of the billionaire investor is appearing on special edition Cherry Coke cans all over the world's most populous nation.
Buffett is helping Coke launch the flavored soda in China, a sugary drink the 86-year-old claims is his secret to staying young. [...]

Berkshire News Briefs - 3/18/17

7 Enlightening Lessons From Berkshire Hathaway’s 2016 Annual Report

Just the lesson headings:

Lesson #1 - Book Value is an Imperfect Measure of Intrinsic Value
Lesson #2 – Dilution Destroys Shareholder Value
Lesson #3 – Buffett is Bullish on the American Economy
Lesson #4 – Bargain Hunting Combined with Long Holding Periods Create Substantial Value
Lesson #5 – Share Repurchases Build Value, Regardless of What the Skeptics Say
Lesson #6 – Cheap Leverage is an Incredible Advantage
Lesson #7 – Berkshire Has an Invisible Stake in Bank of America

BNSF agrees to clean up coal, petcoke emitted from rail cars

BNSF Railway Co. will clean up coal and petroleum coke in waterways, fund a study of rail-car covers and pay $1 million for environmental projects in Washington state, according to consent decree filed in U.S. District Court. [...]

Under the decree, BNSF will pay for the cleanup of Pacific Northwest waterways that were polluted by coal or petroleum coke that spilled from open-topped rail cars.

In addition, BNSF will pay $1 million for environmental projects in the Bellingham, Puget Sound, Columbia River and Spokane River areas. The Class I also will clean up areas of the Columbia River and its tributaries that have been littered with coal and petroleum coke from BNSF trains.

Moreover, the decree requires the railroad to fund a study about covers for rail cars carrying coal and petroleum coke. [...]

Additionally, BNSF denies any violations of the Clean Water Act, and the U.S. District Court judge did not find any specific violations. [...]

NV Energy seeks approval for rooftop solar alternative with Apple ties

Recall Berkshire Hathaway Energy subsidiary NV Energy's feud with Solar City over net metering in Nevada from last year...

NV Energy is seeking approval from state regulators for a renewable energy program that is aimed at providing an alternative to rooftop solar via energy sources based in the state, including one in conjunction with Apple. [...]

The Subscription Solar program allows NV Energy customers to subscribe each month to at least 100-kilowatt hour blocks of solar energy generated from within the state. The energy will be provided by the company’s Boulder Solar I facility, which has set aside 10 megawatts for the program, as well as the Techren II facility, which is a joint venture with Apple. The latter has set aside 5 megawatts for the program and will be online by 2019. [...]

The program will allow residential customers and, eventually, small to mid-size businesses to meet as much as 100 percent of their energy needs with renewable energy. NV Energy cited rooftop solar as a key factor in the creation of the program. [...]

KITCO Fiber Optics Joins Marmon Aerospace & Defense LLC

Marmon Aerospace & Defense LLC, a Marmon/Berkshire Hathaway company, today announced the acquisition of KITCO Fiber Optics of Virginia Beach, VA, a highly-respected leader in the specialty, military, and aerospace fiber optic industries. Terms were not disclosed.

While KITCO will continue to operate as an independent business, its products complement those of Marmon Aerospace & Defense. Together, the two businesses will offer defense industry customers unique, focused product and service capabilities for electrical, electronic, fiber optic, and communication solutions. Their collective resources will enable continued growth and innovation for both Marmon and KITCO in service to the U.S. defense industry. [...]

Dairy Queen Celebrates First Day of Spring With Free Cone Day on March 20

Drones have delivered products and pizzas. Now drones are delivering cones – for a good cause. To kick off Free Cone Day on March 20th, which is also the first day of Spring, DQ® enlisted the help of a drone to deliver cones to a few lucky fans. It was the first time the Berkshire Hathaway company has delivered cones by drone. For the rest of us, we can get our free cone at DQ all day on Monday, March 20th. Participating locations also will be collecting donations for Children’s Miracle Network Hospitals, which raises funds to help save and improve the lives of kids treated at 170 children’s hospitals across the U.S. and Canada. [...]

Buffett's pay rises; Berkshire urges rejection of shareholder proposals

Warren Buffett's compensation for running Berkshire Hathaway Inc. edged up 4.0 percent last year to $487,881 reflecting the higher cost of keeping the world's second-richest person safe. [...]

Berkshire said Buffett's salary in 2016 was $100,000, the same amount he has received for more than a quarter century, while the cost of providing him with home and personal security services rose to $387,881 last year from $370,244. [...]

Barack Obama Grabs Lunch with Billionaire Warren Buffett at Omaha Country Club

Former president Barack Obama made a quick stop in Omaha, Nebraska, Sunday afternoon to grab lunch with billionaire investor Warren Buffett, the Omaha World-Herald reported. The two were joined by Buffett’s daughter Susie Buffett for lunch in a private room at the Happy Hollow country club, where Warren Buffett is a member. [...]

While Susie Buffett remained quiet about the topics of conversation at the lunch meeting, some sources speculated the Obama visit was an effort to raise funds from the elder Buffett for his presidential library or other charities. [...]

Berkshire News Briefs - 10/12/16

Mars Cashes Out Warren Buffett to Take Control of Wrigley

Mars Inc. has finally taken full control of Wrigley, formally putting M&Ms and Altoids mints in the same division — and cashing out its partner, Warren E. Buffett, in the process. [...]

Berkshire Hathaway helped Mars buy Wrigley for about $23 billion in 2008. It was a classic deal for the billionaire, who has traditionally favored acquisitions involving well-known names and strongly performing businesses.

But there was a lucrative element in the way Mr. Buffett participated in the transaction. As part of the arrangement, Berkshire received preferred shares worth about $2.1 billion, which paid a 5 percent annual dividend, and $4.4 billion worth of bonds that carried a hefty 11.45 percent interest rate. [...]

Berkshire Is Bigger Than Buffett

We think two big concerns--a belief that Berkshire Hathaway's size will prevent it from growing at a decent clip in the future and that the company's shares will get pummeled once Buffett no longer runs the show--have kept some investors on the sidelines. Although we believe that the wide-moat firm is unlikely to consistently grow its book value per share at a double-digit rate, something that happened nine times during 2001-15 and 40 times during 1965-2015, we think that Berkshire can grow its book value per share at a high-single- to double-digit rate going forward, much as we've seen since the start of the new millennium. This type of growth should leave returns solidly and consistently above the firm's cost of capital [...]

Cash is piling up faster than Warren Buffett can invest it

Warren Buffett has the kind of money problem most people would envy: a growing mountain of cash.

Nearly $73 billion piled up at Berkshire Hathaway by mid-summer, more than Buffett’s conglomerate has ever held before.

And the total continues growing every day Buffett doesn’t make a major investment because Berkshire’s 90-odd businesses generate roughly $1.5 billion in cash every month. [...]

Yahoo Finance to Host Exclusive Live Stream of Berkshire Hathaway Shareholders Meeting for Second Year

Yahoo! Inc. today announced that it will host the exclusive live stream of Berkshire Hathaway’s annual shareholders meeting on Saturday May 6, 2017, for the second year in a row. Approximately 40,000 Berkshire Hathaway shareholders from around the world attend the highly anticipated annual event. In 2016, Yahoo Finance opened the meeting to the general public via live stream, for the first time ever, with more than 1 million viewers tuning in. [...]

Berkshire Hathaway Eyes Growth Despite Cat Loss Concerns

Berkshire Hathaway’s non-insurance businesses like utilities and & energy, and manufacturing, service & retail, have been reporting favorable results. In fact, total revenue from manufacturing, service and retail has improved substantially over the past several quarters. The strong results across most of the units can be attributed to better economic conditions and higher consumer demand.

Also, the company’s book value has been improving consistently. The insurer’s already robust book value growth is expected to be boosted further with the turn of the economy, increased gains from the value of the derivatives positions, and continued positive contribution from earnings growth in insurance operations. [...]

Atlas Bolt & Screw President Ridenour to retire

Randy Ridenour, President of Atlas Bolt & Screw Company LLC, has decided to retire at the end of 2016 after 32 years with the company. [...]

Atlas Bolt & Screw Company, a Marmon/Berkshire Hathaway company, offers a wide range of construction fasteners that reduce installation costs and extend the lives of metal buildings worldwide. [...]

Shaw Contract eyes smaller town, to raise investment limit

Shaw Contract, a business unit of Shaw Industries Group Inc which is a wholly-owned subsidiary of the Warren Buffet's Berkshire Hathaway, is looking to penetrate into the small towns and also raise investment limit in the country. The Bengaluru [India]-based Shaw Contract India has been in operations for over two decades and is the second-largest supplier of commercial carpet tiles in the country with a market share of around 22 percent, the company claimed. [...]

Berkshire can't resist India any more, to return with reinsurance business

Warren Buffett, who had exited India three years back citing regulatory suffocation, can’t resist India any more. Berkshire Hathaway is in fact returning to India with a plan to set up a reinsurance branch which would be much bigger than what it was when it was into insurance broking. [...]

Currently, Berkshire is present in India as a services company and is a leader of reinsurance treaty — purchased by insurers from one or more other companies — of large insurance companies including Bajaj Allianz General Insurance.

The company provides support services such as data collection, market research and training to insurance companies. As a leader of the treaty, it reinsures vast portions of the risk underwritten by these companies. [...]

Berkshire Hathaway Specialty Insurance Company Expands to Macau, Makes Local Office Appointments

Berkshire Hathaway Specialty Insurance Company (BHSI) today announced that it has received a license to provide insurance and reinsurance in Macau and filled key positions in its newly established Macau office. [...]

Berkshire News Briefs - 9/21/16

Warren Buffett: I won't comment on the Wells Fargo scandal until November (Business Insider)

Warren Buffett is waiting until after the election to weigh in on Wells Fargo.

Buffett told Fox Business' Liz Claman that he will not comment on the bank's scandal until November. Buffett is the largest shareholder of Wells Fargo and recently petitioned the Federal Reserve to increase his ownership stake above 10%. [...]

Wells Fargo recently settled with regulators for $185 million after it came to light that employees had opened around 2 million accounts without the knowledge of customers. About 5,300 of the bank's employees were fired as a result of the scandal. [...]

Buffett Now Phillips 66's Top Owner (Investopedia)

Shares of Phillips 66 rose after the news this week that billionaire Warren Buffett had increased Berkshire Hathaway Inc.'s holdings of the energy company by 1,019,974 shares, making Berkshire the largest holder. Berkshire now owns about 15.4% of the stock outstanding, or a total of 80,671,982 shares. [...]

Nevada Approves SolarCity’s Deal With Berkshire’s NV Energy

Nevada regulators have approved a deal between Berkshire Hathaway Inc.’s NV Energy utility and SolarCity Corp. that will roll back rate hikes for existing rooftop solar customers. The Nevada Public Utilities Commission voted 3-0 on Friday in favor of a settlement that will shield more than 32,000 rooftop solar customers in the state from increased fees that took effect in January. Earlier this week, NV Energy and SolarCity had asked the commission to approve an agreement that would grandfather those who signed up to use home solar prior to January under more favorable rates for 20 years. [...]

Berkshire Hathaway Will Do Just Fine After Buffett (Fortune)

Investment research firm Morningstar released a note on Sept. 2 that eased a widespread fear that without the now 86-year-old Oracle of Omaha and his partner, 92-year-old Charlie Munger, Berkshire Hathaway would collapse.

“The key to Berkshire’s success over the years has been Buffett’s ability to not only find fruitful ways to put the firm’s excess capital to work but in paying close attention to culture and fit when acquiring companies,” wrote Greggory Warren, senior equity analyst at Morningstar. “Berkshire’s culture of management autonomy and entrepreneurship has to a large degree become institutionalized.” [...]

Berkshire Hathaway firm CTB to buy 80% stake in Cabinplant (Packaging Business Review)

Berkshire Hathaway company CTB has agreed to purchase 80% stake in Danish company Cabinplant for an undisclosed sum. Based in Haarby, Cabinplant provides processing and weighing / packing solutions for the food industry. [...] The company, which has around 300 employees, carries out operations in about 30 countries. CTB said that the Cabinplant’s poultry processing equipment complements its Meyn poultry processing subsidiary.

Pasta Equipment Maker Dominioni Joins Marmon (BusinessWire)

Marmon Food, Beverage & Water Technologies Company, part of Berkshire Hathaway Inc., today announced the acquisition of the assets of Dominioni Punto & Pasta S.r.l., a leading Italian supplier of commercial pasta equipment, by Marmon Pasta Solutions S.r.l. Terms were not disclosed.

Founded in 1968 by Pietro Dominioni, the family-run business designs and produces professional pasta equipment for the restaurant, hospitality, and catering markets, as well as high-volume pasta manufacturers. The business will continue to operate under the Dominioni brand name and its operations will remain based in Lurate Caccivio (Como). Fabrizio Dominioni, son of the founder, will continue to manage the business. [...]

J.P. Morgan Names Berkshire Hathaway Investment Manager Combs to Board (NASDAQ)

J.P. Morgan Chase & Co. on Tuesday said it named Berkshire Hathaway Inc. investment manager Todd Combs to its board, bringing into the fold an heir-apparent of billionaire investor Warren Buffett's enterprise.

Mr. Combs, 45 years old, is a former hedge-fund manager who began working at Berkshire in 2011. He and a counterpart, Ted Weschler, manage portfolios of about $9 billion each, but they will take over all stock-picking duties when Mr. Buffett is no longer running the firm.

Mr. Combs has served as a director at Precision Castparts since late January, according to a regulatory filing. [...]

Berkshire Hathaway and underwriting unit sued for running ‘reverse Ponzi scheme’ (MarketWatch)

A New York City-based courier service has sued Berkshire Hathaway Inc. and one of its companies, saying they’ve been running a “fradulent scheme” by misusing premiums that were supposed to be used for funding its workers’ compensation coverage.

Breakaway Courier Systems in a lawsuit filed Friday said Berkshire and its Applied Underwriters company have engaged in what was “essentially a reverse Ponzi scheme.” [...]

Berkshire Agrees to Stop Selling EquityComp Policies in California (Insurance Journal)

California Insurance Commissioner Dave Jones on Tuesday approved an order agreed to by California Insurance Co. and Applied Underwriters Captive Risk Assurance Company Inc. under which they will stop selling workers’ compensation policies that the two Berkshire Hathaway companies used without filing key addendums to the policies. [...]

Jones’ action stemmed from his decision that a complex insurance scheme in a case involving a company called Shasta Linen. [...] Jones found that the insurance companies issued the policies and rates without his approval. He also ruled that the companies designed the program with the intent of avoiding the review of insurance regulators.

World’s Smartest Investor Outperforms With Boring Utilities (Oil Price)

[...] But several years ago, Buffet began steering Berkshire into investments unusual for a financial concern. He purchased a number of regulated electric utilities and a railroad, the Burlington Northern. These investments have much in common. They provide essential services in slow growing markets. They generate steady albeit modest returns. They require ongoing, large capital investments to maintain current levels of service and, as long as investment takes place, they generate substantial income tax deferrals that can also be invested profitably. Since these businesses are growing, at least in term of their assets--and some level of profitability is virtually assured--the owner or investor can still reinvest their capital at a reasonable return. They don’t have to worry about the vagaries of public markets equity or fixed income. They can invest in themselves so to speak. [...]

A psychologist reveals the persuasive tactic Warren Buffett uses to make his shareholders trust him (Business Insider)

[...] This unabashed recounting of Berkshire Hathaway's setbacks isn't unique to the 2012 letter; in fact, Buffett frequently opens his letters this way.

According to psychologist Robert Cialdini, this strategy is brilliant. Cialdini is a professor emeritus of psychology and marketing at Arizona State University, the CEO and president of Influence at Work, and the author of the new book "Pre-Suasion," in which he highlights the invisible interpersonal forces behind our behavior.

In the book, he highlights Buffett's letter-writing strategy as a prime example of a "pre-suasive" tactic, or a way to influence people to behave a certain way in the moments before they make their decision. In this case, the decision might be whether to start or continue investing in Berkshire Hathaway. [...]

Berkshire News Briefs - 11/13/15

Berkshire Hathaway and the Billion-Dollar Acquisition No One Noticed (Fool)

Well, I wouldn't say no one noticed.

Through superior capital allocation and the resulting compounding of intrinsic value, Warren Buffett's conglomerate, Berkshire Hathaway, has become so large that its subsidiaries make billion-dollar acquisitions that go nearly unnoticed. [...]

On September 30, 2015, UTLX acquired approximately 25,000 tank cars from General Electric Company's leasing unit for a total purchase price of approximately $1.0 billion. This transaction and related transactions to be completed in the fourth quarter of 2015 are expected to further enhance the full-service capabilities of UTLX's repair, maintenance and inspection network and contribute to future revenue and earnings growth.

Here's the press release from Marmon, explaining that Union Tank Car (UTLX) and Procor will add the tank cars to their fleet which they lease out.

Kraft Heinz to close 7 North American plants, cut 2,600 jobs (Pittsburgh Post-Gazette)

Kraft Heinz Co. told about 2,600 employees at seven North American plants on Wednesday they wouldn’t have a future with the processed food company on a mission to streamline operations and meet goals set when investors created the bulked-up business earlier this year.

The cuts mark the second round of job trimming since the company was formed this summer in the merger of Pittsburgh’s H.J. Heinz Co. and Northfield, Ill.-based Kraft Foods Group. [...]

A plant in Pennsylvania’s Lehigh Valley that employs 400 people making A1 sauce, Grey Poupon mustard and single-serve coffee is among those slated to close in the next 12 to 24 months.

It and five other plants being closed had been part of Kraft. Those are in Fullerton, Calif.; San Leandro, Calif.; Federalsburg, Md.; Campbell, N.Y.; and Madison, Wis. The other plant being shuttered, in St. Marys, Ontario, Canada, was a Heinz plant. [...] In addition, Kraft Heinz will move its Oscar Mayer and U.S. meats business from Madison, Wis., to Chicago, taking about 250 jobs along.

Warren Buffett's Ice Cream Chain Dairy Queen Looks to Fix Its Winter Problem (Newsmax)

With a new menu of snacks and sandwiches, the 75-year-old fixture of American summers is looking beyond its signature soft-serve and diving deeper into fast-food fare, where even giants like McDonald’s Corp. have been struggling lately.

It’s a major bet — but one that DQ’s chief executive officer, John Gainor, says is already starting to pay off. After introducing a line of hot desserts and artisan-style sandwiches, part of the company’s biggest menu overhaul in its history, same-store sales grew in September and October. [...]

The bigger test will come when winter sets in next month. The hope is new warm fudge-stuffed cookies and chicken-bacon sandwiches will get customers to think of Dairy Queen when the weather turns cold. [...]

Jordan’s Furniture to open in New Haven (Yale Daily News)

Zip lines, a 45-foot fountain and the world’s largest indoor adventure rope course will all come to New Haven in time for Christmas, bundled inside a 200,000-square-foot furniture store.

Jordan’s Furniture — a family-run business that offers shoppers entertainment options including theaters in six locations across New England — opens on 40 Sargent Dr., the former New Haven Register building, on Dec. 11, President and CEO Eliot Tatelman announced Wednesday [...]

Though Jordan’s is owned by American conglomerate holding company Berkshire Hathaway, Tatelman said his family runs the day-to-day affairs of the company. He added that Warren Buffett, CEO of Berkshire Hathaway, will make an appearance at the private opening ceremony on Dec. 10.

Tianjin explosions cost Berkshire Hathaway $130 million in reinsurance losses (Canadian Underwriter)

Berkshire Hathaway Inc. reported Friday its estimated losses from the Tianjin, China explosions last August were $130 million, though the Q3 underwriting gain for the Berkshire Hathaway Primary Group increased 31% year over year. [...]

On Aug. 12, explosions in Tianjin originated from a warehouse storing 700 tons of sodium cyanide, which can form a flammable gas on contact with water, the Associated Press reported at the time. As of Sept. 11, AP reported 173 were dead and eight persons were still unaccounted for. Guy Carpenter & Company LLC said at the time that the blast damaged shipping containers and vehicles, while windows several kilometres away were blown out. [...]

Former NetJets executive joining private equity firm (Washington Post)

Four months after Jordan Hansell resigned in the midst of NetJets’ contract dispute with its pilots’ union, he took a job as president of Rockbridge Holdings.

While at NetJets, Hansell had appeared alongside Buffett in interviews to discuss the cost-cutting turnaround he led from 2011 until June. But near the end of tenure, Hansell became the focus of the union’s ire over concessions the company sought in prolonged talks.

“Ultimately, it became a little bit about me as a leader, and I thought it was probably best if I got out of the way to see if they could come to a conclusion in those arrangements,” Hansell said about why he left NetJets. [...]

Howard Buffett Is Getting His Hands Dirty (Bloomberg)

To date, the Howard G. Buffett Foundation has given away $775 million to combat global hunger—efforts include teaching sustainable farming techniques and improving access to clean water—especially in the world’s conflict zones. The Democratic Republic of Congo and Rwanda top his list of countries where he intends to spend a total of more than $700 million during the next decade. They’re about as far away as you can get from Omaha, Nebraska, the site of Buffett’s quiet, humble upbringing. [...]

Berkshire News Briefs - 10/6/15

Marmon and Wells Fargo buy GE Capital rail businesses (Railway Gazette)

Berkshire Hathaway’s Marmon Holdings has bought ‘substantially all’ of GE Railcar Services’ tank wagons with immediate effect, and expects to complete the acquisition of GE Railcar Repair Services in the fourth quarter of 2015.

The wagons will be managed by Union Tank Car Co and Procor, while the repair facilities will expand the UTLX Repair Services and Procor Repair Services networks.

Buffett Cuts Munich Re Stake After Lamenting Reinsurance Slump (Bloomberg)

Warren Buffett’s Berkshire Hathaway Inc. has cut its stake in Munich Re after lamenting a slump in the reinsurance business.

Berkshire’s holding was lowered to 9.7 percent from about 12 percent, Munich Re said in a statement Tuesday, citing a notification from Buffett’s Omaha, Nebraska-based company. [...]

“It’s a business whose prospects have turned for the worse and there’s not much we can do about it,” Buffett told shareholders at his company’s annual meeting in May.

Berkshire's Abel Targeted by Pilots Union Over Board Secrecy (Bloomberg)

A union representing pilots at Berkshire’s NetJets unit said that it took out an advertisement Monday in Abel’s hometown newspaper, Iowa’s Des Moines Register, identifying the executive as a board member of the business. Two other directors remain unidentified, despite attempts to learn who is overseeing the company, the group said on its website.

Berkshire Hathaway Said to Borrow $275 Million for Texas Wind (Bloomberg)

Warren Buffett’s Berkshire Hathaway Inc. borrowed $275 million for a 300-megawatt wind farm in Texas that’s supplying power to Austin Energy, according to two people familiar with the deal. [...]

Berkshire Hathaway’s BHE Renewables unit owns the wind farm, which it acquired from Chicago-based Lincoln Clean Energy LLC.

Warren Buffett Gets Into Cybersecurity Insurance (24/7 Wall St)

Berkshire Hathaway Specialty Insurance (BHSI) unveiled two new types of insurance policies on Tuesday, providing cyber liability and breach response coverage. The company now offers risk management resource policies: the Professional First Network Security & Privacy Policy and the Professional First Professional Liability and Network Security & Privacy Policy. Berkshire Hathaway indicated that the latter also includes customizable errors and omissions liability coverage. [...]

As far as what features these policies include, that would be coverage for third party exposures, breach expense and extortion threat coverage, media liability coverage, business interruption coverage, access to the eRiskHub and more. [...]

Warren Buffett Saved Media General: Don't Dismiss Berkshire In A Fight Over Its Future (Forbes)

In the case of broadcasting conglomerate Media General, Buffett similarly helped revive the company through a creative May 2012 deal where he bought 63 of its newspapers for $142 in cash and provided the Richmond, Va.-based company with a $400 million term loan and a $45 million revolving credit facility. [...] This morning Nexstar Broadcasting disclosed that during Media General’s stock slide, it has been lobbying to buy the company in a merger that would instantly create a powerhouse broadcaster touching nearly 40% of U.S. households. [...] Berkshire, according to the BAML analysis, is a potential friendly investor for Nexstar. However, Berkshire, currently a holder of nearly 4% of Media General’s outstanding stock after a series of stock-funded acquisitions, has historically balked at hostile takeover deals. If Media General’s board decides to continue on its path for Meredith and its standalone strategy, odds are Buffett will support the plan. [...]

Lubrizol opens CPVC resin facility in Thailand (Business Standard)

The Lubrizol Corporation, , a Berkshire Hathaway company, on October 5, 2015 opened a chlorinated polyvinyl chloride (CPVC) resin manufacturing facility in Rayong, Thailand as part of a joint investment with Sekisui Chemical Company Ltd. The plant opening is the latest in the company's efforts to increase global CPVC capacity as previously announced in 2013. [...]

The Thailand facility, combined with Lubrizol's other recent investments in Louisville (Kentucky) and Dahej (India), as well as its existing CPVC operations around the globe, better positions the organisation to support its future business growth. [...]

MetLife Fighting Systemic Tag Asks Why Buffett Gets Pass (Bloomberg)

MetLife Inc., the insurer fighting the U.S. government’s decision to label it a potential threat to financial stability, wants to know why Warren Buffett’s Berkshire Hathaway Inc. has gotten a pass. [...]

“It is difficult to understand why, say, Berkshire Hathaway with $64 billion in debt and $277 billion of market capitalization should not be considered a systemic risk,” Hele said at the November meeting at the Treasury Department in Washington.

Hele also mentioned Visa Inc., noting that the world’s largest payments network had a market capitalization of $135 billion. MetLife’s market capitalization is about $52 billion.

Conservative think tank attacks NV Energy plan to build new power plant (Las Vegas Sun)

The Beacon Hill Institute, a conservative think tank backed by the Koch brothers, released a report Monday condemning a new, $1 billion natural gas plant proposed by NV Energy.

The institute, based at Suffolk University in Boston, said building the new plant could cost consumers $604 million by 2025 and that a new power plant could cost Nevada more than 1,600 jobs and $18 million of private investment.

The Nevada Policy Research Institute, which opposes shutting down coal-fired power plants in exchange for solar and natural gas generation, hired Beacon Hill to do the study. [...]

NV Energy hopes to phase out its use of coal entirely and have one quarter of its electricity generated from renewable sources in the next decade.

Warren Buffett outlasts Ndamukong Suh in final arm-wrestling duel (WPLG 10)

There was more than just football taking place Monday at the Miami Dolphins Training Facility in Davie.

Inside, WPLG Local 10 owner and billionaire Warren Buffett was challenging Dolphins defensive tackle Ndamukong Suh to an arm-wrestling rematch. [...]

It was a struggle, but in the end Buffett, aka "The Bicep," reigned victorious over Suh, aka "The Dominator," once again.

Berkshire News Briefs - 12/2/14

Berkshire to Buy Weatherford Units for at Least $750M (Bloomberg)

Lubrizol, the chemical-additives business at Warren Buffett’s Berkshire Hathaway Inc. (BRK/A), agreed to buy two units from Weatherford International Plc for at least $750 million after the seller was squeezed by lower oil prices. The deal includes the Integrity Industries drilling-fluids business and Engineered Chemistry, which provides additives used in fracking. The price can climb to $825 million depending on performance, Geneva-based Weatherford said today in a statement.

Duracell To be Part of Berkshire’s Marmon and Get New Chief (WSJ MoneyBeat)

Duracell will get a Berkshire Hathaway Inc. executive as its new boss once current owner Procter & Gamble Co. closes the sale to Warren Buffett’s company. The executive, Angelo Pantaleo, currently works at Berkshire subsidiary Marmon Group, helping run its water business. Instead of becoming a full-fledged company at Berkshire, Duracell will be overseen by Marmon, people familiar with the matter said.

Berkshire's BNSF To Continue Ramping Up Investment (Investors Business Daily)

Berkshire Hathaway's BNSF Railway plans to spend $6 billion in 2015 to upgrade and expand its facilities to meet rising demand for rail transportation services. It would be a 9% increase for the Fort Worth, Texas-based company from its planned $5.5 billion capital spending this year. The bulk of the 2015 expenditures will go to replacing and upgrading rails, ties and other track components, the company said. BNSF, which operates 32,500 route miles of track in the U.S. and Canada, will also spend nearly $1.5 billion on expansion projects, including $500 million in the Northern region, where it's growing fastest.

AUC approves Altalink sale (Calgary Herald)

The Alberta Utilities Commission approved the $3.2-billion sale of electricity transmission firm Altalink to U.S. billionaire Warren Buffett’s Berkshire Hathaway Energy on Friday after it determined the transaction would create “no harm” for customer power rates or service. The AUC said it will continue to regulate AltaLink as it did before the change in ownership. [...] Over the next five years, Berkshire Hathaway Energy must re-invest 100 per cent of AltaLink’s earnings into the company or elsewhere in Alberta to support AltaLink’s three-year, $2.7-billion investment in Alberta’s energy infrastructure.

The Surprising Lessons Warren Buffett Learned from a Candy Company (Fool)

So what has made See's so successful? First, although it hasn't been a world-beater in growing its sales, it has been incredibly profitable and a cash-generating machine. From 1972-2011 it contributed a staggering $1.65 billion to the bottom line of Berkshire. Knowing it brings in roughly $85 million annually in pre-tax profits, there will soon come a day when the total contribution of See's to Berkshire will top $2 billion. And what has Berkshire done with all that cash? In 2007 Buffett answered that very question by revealing, "After paying corporate taxes on the profits, we have used the rest to buy other attractive businesses."

Berkshire Hathaway Energy: Economies of scale (WindPower)

Berkshire Hathaway Energy, part of billionaire Warren Buffet's empire, is one of America's largest developer and owner of wind energy. It has already committed about $15 billion to renewables, dwarfing most rivals' investments, and recently said it will invest $280 million more in Iowa wind farms. [...] With 719,000 customers in Iowa, Illinois, Nebraska and South Dakota, MidAmerican owns more wind capacity than any other rate-regulated utility in the US and has been instrumental in making Iowa the state with the highest proportion of wind on its grid. [...] When Wind VIII is complete, 3.35GW or about 39% of MidAmerican Energy's total owned generation capacity will come from the company's 1,715 wind turbines.

Warren Buffett’s favourite ice-cream chain Dairy Queen comes to the UAE (The National)

Berkshire Hathaway-owned Dairy Queen is coming to the UAE. The restaurant chain [...] has signed a franchise deal with Bajco Group to open as many as 20 outlets. The agreement covers DQ Grill & Chill restaurants and DQ Treat stores. The first outlet is due to open in the first quarter of next year, although the exact location is still to be decided. “The problem is that everybody wants to be in Dubai, which means locations are very hard to guarantee,” said Malik Bajwa, president of the Bajco Group. “We will likely open in the Northern Emirates such as Ras Al Khaimah, and we are also looking at Sharjah and Al Ain. Our flagship standalone store will most likely be in Dubai [...]”

Why Is Warren Buffett Obsessed With Consumer Goods Brands? (Bidness Etc)

Mr. Buffett’s Berkshire Hathaway Inc. has always opted to invest in companies with simple business models, as Warren Buffett firmly believes in them. Many of these companies are famous brands of consumer goods like ketchup, batteries, vehicle insurance, or fast food restaurants. Mr. Buffett’s interest in the consumer goods brands can be attributed to the fact that such brands have recurrent and foreseeable cash flows and earnings, with low risk associated to their business models.

Very busy Buffett makes time for Ndamukong Suh (Omaha World Herald)

Warren Buffett’s friendship with athlete Ndamukong Suh started when they were introduced to each other at a Nebraska football game by Tom Osborne, former head coach and athletic director. Since then, Buffett has become a regular financial adviser for Suh, part of a group that includes former TD Ameritrade CEO Joe Moglia, now a football coach, and athlete/businessmen Magic Johnson and Roger Staubach [...]

Warren Buffett On Investment Strategy - Full Interview Fortune MPW (YouTube)

The annual Fortune MPW interview with the world’s most successful investor - Warren Buffett, Chairman and CEO, Berkshire Hathaway. [38 minutes]

Or, if you don't have time for that video, here's this one...

Warren Buffett sings Sinatra to 400 women (YouTube)

Paul Anka and Warren Buffett give Carol Loomis a musical sendoff at Fortune’s Most Powerful Women summit. [5 1/2 minutes]

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 - 6/9/14

Winning bidder for Buffett lunch from Singapore (Yahoo Singapore)

A man from Singapore on Friday bid $2,166,766 to win a private lunch with Warren Buffett, well below the record price but on par with other winning bids in recent years. It was the 15th annual online auction. The winner gets to spend several hours at lunch with Buffett, who leads Berkshire Hathaway and is known for his investing prowess and philanthropy. The auction benefits the Glide Foundation, which provides meals, health care, job training, rehabilitation and housing support to the poor and homeless in San Francisco.

Warren Buffett lunch winning bidder Andy Chua identified (Channel NewsAsia)

Mr Andy Chua made tongues wag when he put in a winning bid of US$2.17 million to dine with billionaire Warren Buffet. Little was revealed about the man by Glide Foundation except that he is a businessman from Singapore with a company called EMES, but Channel NewsAsia understands he is the chairman of AMES United, which runs a chain of beauty and grooming centres across Asia.

+++ Energy News +++

So much Energy News this week, that I'm giving it its own section...

Buffett’s $26 Billion Power Bet in West Seen Paying Off (Bloomberg Businessweek)

Warren Buffett’s $26 billion bet on western U.S. power plants, transmission lines and wind farms is poised to pay off. The energy unit of Buffett’s Berkshire Hathaway Inc., with the help of California’s grid operator, is moving to unite the holdings under a single market capable of dispatching power across seven states every five minutes. The system, designed to handle sudden swings in supply and demand, would revolutionize the markets from Oregon to Nevada, where 38 transmission operators manually balance their territories on an hourly basis.

Buffett to Expand Energy Wager ‘As Far as the Eye Can See' (Bloomberg Businessweek)

Berkshire Hathaway Inc., which has struck deals to expand its utility business in Nevada and Western Canada, plans more investment in the industry, in part by betting on renewable power, ChairmanWarren Buffett said. “We’ve poured billions and billions and billions of dollars in retained earnings, and several billion of additional equity,” into the energy business, Buffett, 83, said today at the Edison Electric Institute’s annual convention in Las Vegas. “And we’re going to keep doing that as far as the eye can see.”

First Wind to Sell Solar Power From Utah to Buffett Unit (Bloomberg Businessweek)

First Wind Holdings Inc., a Boston-based renewable-energy developer, has agreed to sell power from seven Utah solar farms to a utility owned by Warren Buffett’s Berkshire Hathaway Inc. Four solar farms planned for Beaver County and three for Iron County will sell power to PacifiCorp, a subsidiary of Berkshire Hathaway, First Wind said today in a statement. Construction is expected to begin later this year and end by mid-2015. The projects, which combined will produce 20 megawatts, will power about 4,000 homes. Rocky Mountain Power, a unit of PacifiCorp, is buying the electricity under a 20-year contract.

Solar Star I and 2 on schedule (Recharge News)

Owner MidAmerican Solar and SunPower Corp have completed more than half of what will be the world’s largest solar array - the 579MW (AC) Solar Star I and 2 projects in California. Construction on the projects began in 2013 and is on schedule for completion by yearend 2015. Southern California Edison will purchase electricity from the projects under two long-term power purchase agreements. MidAmerican, part of billionaire Warren Buffett’s Berkshire Hathaway holding company, recently installed the project’s one millionth PV module.

Another SunPower Project at Nellis Base (Zacks)

SunPower Corp. has entered into an agreement with NV Energy, a unit of Berkshire Hathaway Inc., to construct a 19 megawatt (MW) solar photovoltaic (PV) power project at Nellis Air Force Base in southern Nevada. This new project will bring more clean energy to Nevada’s military base. [...] The company will start the construction of the plant in 2015 subject to approval from the Nevada's Public Utilities Commission. This agreement marks the second one of its kind between these two companies. Earlier, SunPower and NV Energy had constructed a 14-MW solar power project at the base in 2007.

+++ Other Subsidiary News +++

Energy time is over... on to insurance and Marmon!

On the Job: Noel helps lead Berkshire Hathaway Specialty Insurance into travel insurance business (Stevens Point Journal)

AirCare is the first of several travel-protection products slated to be released over the next several months by Berkshire Hathaway Travel Protection, which will operate under the leadership of John Noel. [...] In January, Berkshire Hathaway Specialty Insurance, part of the investment empire of billionaire Warren Buffett, reached an agreement with Stevens Point-based Noel Group to purchase two of its divisions, MyAssist and Insure America. MyAssist is a personal assistance and telematics service provider, while Insure America LLC provides insurance products to the travel industry. Noel, the founder, chairman and CEO of Noel Group, continues to head the MyAssist and Insure America operations.

Gen Re Names Rotatori CEO, Clark to Become President (Claims Journal)

Gen Re, a Berkshire Hathaway Company, announced several planned organizational changes prompted by Gerard Lynch’s announcement that he will be retiring December 31, 2014. Lynch has been chairman and CEO since founding New England Asset Management (NEAM) in 1984. Effective immediately, the company’s current president, William Rotatori, was promoted to chief executive officer and Chip Clark was appointed to president. Lynch will remain chairman until his retirement, at which point he will become non-executive chairman.

TSE Brakes Reveals New Logo, Website As Part Of Rebranding Effort (Aftermarket News)

TSE Brakes, a Marmon Highway Technologies/Berkshire Hathaway Co., has unveiled a new logo, website (www.tsebrakes.com) and supporting materials as part of an ongoing rebranding effort. [...] Founded more than 50 years ago, TSE says it has fostered a customer-first commitment while maintaining a singular focus on becoming one of the heavy-duty industry's leading spring brake manufacturers. Today, as a Marmon Highway Technologies/Berkshire Hathaway company, TSE Brakes is investing significant resources in R&D as it strives to develop the next industry-leading actuation technology.

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.”