Berkshire News Briefs - 2/23/18

Berkshire Hathaway released its quarterly 13F statement, detailing its stock holdings as of Dec. 31, 2017.

Here's a summary from Dataroma.

Buffett's Bumpy Ride With IBM Draws to a Close With Stock Sales

Warren Buffett is just about done with International Business Machines Corp.

His conglomerate, Berkshire Hathaway Inc., reported that it cut its stake in Big Blue by 94 percent during the fourth quarter, essentially drawing to a close a rare blemish on his investing record. [...]

IBM was always a curiosity for Buffett followers. He’d spent years telling them that technology companies were outside his area of expertise then plowed more than $10 billion into the company in 2011. [...]

Warren Buffett's Berkshire Hathaway loves loathed Israeli drug stock Teva

After news hit Wednesday that Warren Buffett's Berkshire Hathaway had made a $358 million investment in Israel-based drug company Teva Pharmaceutical Industries, a skepticism lingered even as shares of the heavily shorted stock soared.

What does Berkshire Hathaway see in an out-of-favor drug stock that has languished — Teva shares have declined by roughly half in the past year — that the rest of Wall Street doesn't?

Maybe nothing special. And the size of the bet — at $358 million — is within the discretionary stock selling mandates of Buffett's hedge fund lieutenants, Ted Weschler and Todd Combs. But the bet is consistent with Buffett's long history of value investing, albeit with a twist. [...]

Phillips 66 agrees to repurchase shares from Berkshire Hathaway subsidiary

Phillips 66 said it will buy back shares worth $3.28 billion from a Berkshire Hathaway subsidiary, in a transaction that could ease regulatory pressure for Berkshire, the conglomerate run by Warren Buffett.

Phillips 66 will repurchase 35 million shares for $93.725 per share. The buyback will bring Berkshire's stake in Phillips 66 to slightly below 10 percent. [...]

Buffett's BNSF railroad eyes blockchain for shipping freight

BNSF Railway Co, a unit of the billionaire’s conglomerate Berkshire Hathaway Inc (BRKa.N), on Monday said it has become the first major U.S. railroad to join the Blockchain in Transport Alliance.

The alliance is a group of more than 200 companies examining how best to use the digital ledger technology behind bitcoin and other cryptocurrencies in the transport industry.

It hopes to establish blockchain standards in such areas as vehicle maintenance, quality control and fraud prevention.

Among its members are shippers FedEx Corp and United Parcel Service Inc, tire maker Bridgestone Corp, German software company SAP SE, and some banks and brokers [...]

Buffett’s Berkshire Hathaway Is Cutting More Jobs Across Newspaper Group

BH Media Group is reducing staff by 148 employees and not filling 101 vacant positions, representing a total of about 6 percent of its workforce, the company said Tuesday in a statement. The organization is seeking to trim expenses because of declining advertising revenue.

Among the cutbacks, Buffett’s hometown newspaper, the Omaha World-Herald, is eliminating 43 positions including vacant ones, the paper reported on its website Tuesday. Eleven newsroom employees were among those let go. [...]

Buffett's Business Wire suffers cyberattack

Business Wire, the corporate news release distributor owned by Warren Buffett's Berkshire Hathaway Inc, on Tuesday said it has been suffering for nearly a week from a cyberattack designed to disable it.

The company said it has been experiencing a "directed and persistent" denial of service attack since Jan. 31, though customer information has not been compromised.

"Our website slowed down," said Neil Hershberg, a senior vice president at Business Wire, in a phone interview. "At no point were clients unable to get our releases to us. Our distribution network was totally unaffected by this attack." [...]

Warren Buffett is retiring from Kraft Heinz board

Warren Buffett is retiring from the board of directors of Kraft Heinz, a subsidiary of his company Berkshire Hathaway.

"Mr. Buffett decided to retire from the board as he decreases his travel commitments," Kraft Heinz said in a press release on Friday.

The 87-year-old billionaire will retire after his term ends at the Kraft Heinz annual meeting of stockholders, the company said. [...]

Berkshire Misc. Briefs - 1/5/17

There was a lot of news last month, and I fell behind on posting, so there are three posts this time. This is part 3, with miscellaneous news that didn't fit in the other two categories. That doesn't mean these are any less interesting, though!

(Part 1 - General Business | Part 2 - Subsidiaries)

HBO Sets Warren Buffett Documentary Premiere Date

HBO announced the premiere date for upcoming documentary “Becoming Warren Buffett” on Wednesday. The personal profile will premiere on Jan. 30 at 10 p.m./9c and will tell the true story of how an ambitious, numbers-obsessed boy from Nebraska became one of the richest men in the world.

Told primarily in Buffett’s own words, the film features never-before-released home videos, family photographs, archival footage and interviews with family and friends. [...]

Watch the trailer on YouTube.

Why Yahoo Shared an Investor Meeting in Omaha With the World

In April 2016, for the first time Yahoo Finance livestreamed the Berkshire Hathaway annual meeting; a profitable venture for the industry-leading site (Yahoo Finance in November recorded 63 million monthly unique visitors, per comScore). This livestream was Yahoo Finance's longest, most complex endeavor to date, given it hosted the event on its platform. [...]

It all started with an email from Berkshire Hathaway CEO Warren Buffett. "It said, 'Call me,'" recalled Yahoo Finance editor Andy Serwer. "So, I called him up. And he said 'I've got this idea. What do you think about livestreaming my annual meeting?' And I said 'yes' as quickly as I could!" [...]

The first-of-its-kind meeting was Buffett's idea. "I asked him later why he came to us," said Serwer. "He said there were several reasons: you successfully executed an NFL game. (The Buffalo Bills-Jacksonville Jaguars matchup in October 2015 netted 15.2 million viewers.) You have the technology to do it. You have the global platform. And, then he also said, 'I have this relationship with you and I know that I can just call you up anytime and get through to you.'"

Berkshire Hathaway to bet on earthquake insurance in Japan

An insurance company under Berkshire Hathaway of the U.S. is considering making a foray into Japan, betting on the potential of the country's earthquake insurance market.

Berkshire Hathaway Specialty Insurance plans to operate as a reinsurer, purchasing earthquake insurance contracts from casualty insurers in Japan, according to Marc Breuil, a BHSI executive in charge of Asia. [...]

After BHSI starts selling earthquake reinsurance in Japan, earthquake policies may become widespread in the country. Currently, about 10% of Japanese companies are insured against temblors. This is stunted compared to the rate in other earthquake-prone countries.

One major reason for the low percentage is the relatively high premiums for earthquake insurance when compared to fire insurance. Another reason is that insurers have refrained from actively selling earthquake policies to companies, citing unstable prices in the reinsurance market.

Buffett's Berkshire Is Urged to Sell Fossil Fuel Stocks

A Nebraska nonprofit has said it will propose that Warren Buffett's Berkshire Hathaway Inc. sell its investments in oil refiner Phillips 66 and other companies involved in fossil fuels over 12 years.

The Nebraska Peace Foundation, which focuses on anti-war, civil rights and environmental issues, said it submitted a formal proposal for Berkshire shareholders to consider at the Omaha-based conglomerate's annual meeting next May 6.

Buffett’s Son Steps Down From Coke Board to Focus on Charity

Howard Buffett, the son of Berkshire Hathaway Inc. Chairman Warren Buffett, is stepping down from the board of Coca-Cola Co. to spend more time working at his foundation. [...] He runs the Howard G. Buffett Foundation, which supports sustainable agriculture and conflict resolution programs. He also has operated a 1,500-acre (600-hectare) farm in Illinois and has written books on topics such as world hunger and conservation.

Warren Buffett makes appearance at Dolphins-Cardinals game

The Miami Dolphins have a special guest for Sunday’s game against the Arizona Cardinals. Business tycoon Warren Buffett roamed the Dolphins’ sideline pregame to talk to members of the organization and show his support.

Buffett, who is one of the richest people in the world, has attended Dolphins games in the past. He was at last year’s home opener and is friends with four-time Pro Bowl defensive tackle Ndamukong Suh. [...]

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 - 9/3/16

Warren Buffett’s company tops up on Phillips 66 shares (CBS News)

Warren Buffett’s company now controls more than 15 percent of Phillips 66 stock after buying another 414,065 shares of the oil refiner this week.

Berkshire Hathaway disclosed the latest purchases in a filing with the Securities and Exchange Commission on Wednesday.

Berkshire now owns about 79.5 million shares of Phillips 66 (PSX), which represents 15.2 percent of the Houston-based company’s stock. [...]

Here's How Warren Buffett Could Lose a Major Cash Cow as Dow Chemical Rallies (Fortune)

[Berkshire Hathaway] has been collecting roughly $225 million a year (or $8 a second) in interest from his Dow Chemical stake since 2009. That year, Buffett provided Dow with $3 billion to help finance its purchase of chemical maker Rohm and Haas. As part of the agreement, the industrials giant gave the investor preferred stock and slapped on a hefty 8.5% annual payment on top of it.

But the contract came with a back door for Dow. Starting in April 2014, should shares of Dow Chemical close above $53.72 for 20 days in any consecutive 30-day trading period, Dow can convert Buffett’s preferred shares into common stock—canceling the Oracle’s $8-a-second payout. Each of Dow’s common shares pay a mere 3.4% annual regular dividend, so it’s of little surprise that Dow Chemical has indicated that it fully intends to convert Buffett’s stake should the conditions be met. [...]

Berkshire’s Jain Tells Gen Re Staff to Fix ‘Problem’ With Costs (Bloomberg)

Ajit Jain, one of Warren Buffett’s top managers at Berkshire Hathaway Inc., has a message for the staff that he oversees at Gen Re: It’s time for their business to get much leaner and less bureaucratic.

After taking charge of the reinsurer this year and installing a longtime deputy to lead the operation, Jain sent a memo to employees detailing five areas, including compensation and sales channels, where changes should be made. He also called for increasing business unit autonomy, accepting modifications on the terms of some risk-transfer deals and reducing complexity. [...]

Iowa Approves Massive Wind Farm Amid Utility's Push for 100 Percent Renewable Energy (GovTech)

The Iowa Utilities Board has given MidAmerican Energy the green light for the utility's plans for a $3.6 billion wind energy investment, the largest renewable energy project in the state.

The state board on Friday gave final approval for the utility's Wind XI farm.

The project -- first announced in April -- is part of Des Moines-based MidAmerican's goal to reach 100 percent renewable energy for Iowa customers. [...]

BNSF launches faster intermodal service between Pacific Northwest, Texas (Progressive Railroading)

Starting Sept. 12, BNSF Railway Co. will offer intermodal customers a new service to move freight between the Pacific Northwest and Texas, the Class I announced yesterday.

Under the new service, shippers who move commodities and consumer goods between Portland, Ore., or Seattle and Dallas/Fort Worth will be able to cut transit times by up to two days when compared to rail transit time options currently in the marketplace, BNSF officials said in a press release. [...]

Berkshire Affiliates Refund $95K After Market-Based Rate Ruling (RTO Insider)

NV Energy and PacifiCorp returned nearly $95,000 to generation customers after FERC revoked market-based rate authority for Berkshire Hathaway Energy affiliates in four neighboring Western balancing authority areas and imposed cost-based rates. [...]

The commission restricted Berkshire’s market-based rate authority in June after ruling that the company’s affiliates failed to disprove that they collectively exercise horizontal market power in the PacifiCorp East, PacifiCorp West, Idaho Power and NorthWestern balancing areas [...]

Berkshire Hathaway, Transformed (Bloomberg)

Warren Buffett's Berkshire Hathaway took its first step toward becoming a conglomerate back in 1967 by stepping from textiles into insurance, which would become its lifeblood. Nearly fifty years later, it's evolved again.

The $358 billion company's steady foray into energy, railways and manufacturing (among other sectors) has radically changed its earnings profile over the past decade. As a result, once-core insurance divisions such as Geico have become a much smaller part of the overall business. In fact, Berkshire's insurance arm is expected to contribute just 25 percent of its total 2016 pre-tax operating earnings, less than half the 57 percent that it accounted for in 2006. [...]

86 Reasons We Love Warren Buffett (Fool)

Tuesday, Aug. 30, is Warren Buffett's 86th birthday. Each year, I celebrate the Babe Ruth of Investing's birthday by adding another reason we love our hero. [...]

Berkshire News Briefs - 8/22/16

Berkshire Hathaway's quarterly 13F statement was filed with the SEC last week, detailing the company's investment holdings. Visit Dataroma for a quick summary table of changes from last quarter.

Buffett’s Berkshire Hathaway Increases Bet on Apple (WSJ / MoneyBeat)

Warren Buffett's Berkshire Hathaway sharply increased its bet on Apple Inc. during the second quarter, bringing its stake in the iPhone maker to roughly $1.5 billion. [...]

Berkshire reduced its holdings in discount retailer Wal-Mart Stores by 27% and cut its stake in farm machinery maker Deere & Co. by 5.7%. The firm cut its stake in Suncor Energy, Canada’s largest crude oil producer by 26%.

Berkshire continued to build its stake in refiner Phillips 66, increasing its stake by 4.3% but left its stake in pipeline giant Kinder Morgan unchanged. [...]

Brooks Running is leading the charge against a controversial Olympics rule

Who’s behind the [@rule40 Twitter] account? The Berkshire Hathaway-owned sneaker company Brooks Running, based in Seattle, which sponsors 12 athletes competing at this year’s Olympics. Brooks CEO Jim Weber says Rule 40 must change.

In addition to the @rule40 Twitter handle, Brooks owns the rule40.com domain name, and is using both to wage a PR war against the USOC.

Under Rule 40 guidelines, non-official sponsors cannot refer to the Olympics in any marketing, advertising, or social media during a blackout period that begins nine days before the opening ceremony and ends three days after the closing ceremony. [...]

Berkshire Hathaway: The Lamest $1.2 Billion Haul (Fool)

Berkshire Hathaway earned about $1.2 billion in pre-tax income from the investment portfolios of its many insurance companies in the second quarter -- this represents a combination of interest and dividend income on investment assets of nearly $185 billion.

In dollars and cents, a billion dollars is something marvelous. Relative to Berkshire Hathway's massive investment portfolio, however, it's mere pocket change, and symbolic of a problem that plagues financial companies across the spectrum: Interest rates are simply too low to really move the needle. [...]

Warren Buffett Just Unloaded $195 Million Worth of These 'Weapons of Mass Destruction' (Fortune)

Warren Buffett, the famed CEO of Berkshire Hathaway, paid $195 million in June in order to terminate Berkshire’s final contract in which Buffett insurance and investing conglomerate sold protection against losses on bonds, according to a regulatory filing by the company Friday. That contract was initiated in 2008, and tied to municipal debt, with maturities ranging from 2019 to 2054.

The terminated contract gave Berkshire pre-tax earnings of $103 million in the second quarter and $89 million in the first six months of 2016. [...]

The Playbook Interview: Warren Buffett (Politico)

“There’s two things that make it [the economy] better: innovation and productivity, which are interlocked in certain ways. When you think of it, all of the products that you and I are using to make our lives better weren’t even around 30 years ago. It’s pretty extraordinary. And if you go back 100 years, every time I get in the dental chair, I think to myself, if this was 100 years ago, they’d be pouring whiskey down me and holding my arms. Now, I sit there and daydream about other stuff. So anything that improves experiences – what people want to do with the 24 hours in the day that they have. And secondly, what really counts is gains in productivity. If you go back 100 years … the farms around where I live here were producing 30 bushels of corn per acre. Now they’re producing 160 bushels of corn per acre. Well, that’s dramatic, and of course they take less people to do it as well, so, just up and down the line, you look at how many man-hours it takes to produce an auto now compared to 50 years ago. So, productivity – that’s the way the human race improves.” [...]

Berkshire Hathaway group firm Mouser to invest ₹90 crore in India over three years (Hindu Business Line)

Mouser Electronics, a subsidiary of TTI Inc and part of Warren Buffett’s Bershire Hathaway, is expected to invest ₹90 crore to ramp up its India presence.

Speaking to BusinessLine during the company’s opening of a new customer service and back office support centre on MG Road here, Mark Burr-Lonnon, Mouser’s Senior Vice-President of APAC and EMEA, said: “The India sales trend looks good as customer traction is up 45 per cent. A major part of that demand comes from Bengaluru, followed by Hyderabad, Delhi and Pune. Online sales from Indian customers which was 57 per cent in 2015 has grown to 62 per cent in January-July 2016. Therefore, we have decided to ramp up our India team, to increase the levels of local support we offer to customers here.” [...]

Berkshire Hathaway Travel Protection Teams Up With TripInsuranceZone (Digital Journal)

Berkshire Hathaway Travel Protection (BHTP) is now teaming up with TripInsuranceZone to bring BHTP’s suite of travel insurance products to the online travel insurance comparison website TripInsuranceZone.com. [...]

Using TripInsuranceZone’s unique comparison engine, travelers can research, quote, compare and purchase travel insurance from most major travel insurance providers in the United States. [...]

How Risky Is Berkshire Hathaway Inc.? (Fool)

No stock is without risk, and Berkshire certainly isn't an exception. Here are just a couple of the reasons Berkshire's share price could go down. The stock market could drop significantly. [...] Interest rates could stay low. [...]

Either of these things could cause Berkshire's stock to plunge in the short term, and there are plenty of other economic and company-specific issues that could hurt Berkshire. It has happened before: Berkshire lost nearly half of its share price in 1974 and more recently took a 32% haircut in 2008. So, if you buy Berkshire, do it for the long term. Thanks to the incredible diversity of Berkshire's revenue stream, any weakness should be temporary. [...]

Richard Holland, who helped launch Buffett-Munger partnership, dies at 95 (Washington Post)

Richard Holland, the Nebraska advertising executive who helped link up one of the great partnerships in business history — between Berkshire Hathaway Chairman Warren Buffett and his deputy, Charles Munger — died Aug. 9 at his home in Omaha. He was 95. [...]

As one of Buffett’s earliest investors, Mr. Holland reaped gains that made him and his wife, Mary, among Omaha’s wealthiest people and most generous philanthropists. Although their net worth wasn’t public, their private charitable foundation reported assets of $158.8 million in 2014. [...]

Wanted: Help handing out Warren Buffett’s fortune (Boston Globe)

Each year, Buffett, the billionaire investor, receives thousands of letters from people asking whether he would pay their mortgages, medical bills, credit card debt, and more. Through a unique sibling partnership, Buffett forwards the letters to his older sister, Doris, who decides which ones to fund. Over the past decade, at least 22,000 letters have crossed their collective desks, and they have given away more than $12 million.

And now, in what might be Boston’s most unusual volunteer opportunity, Doris Buffett — who moved to the city last fall — is looking for people in Greater Boston to help her read a backlog of those letters, as well as new batches that continually arrive. [...]

Berkshire News Briefs - 2/9/16

As Berkshire Hathaway meeting set to be streamed online, will fewer make Omaha pilgrimage? (Omaha World-Herald)

Berkshire Hathaway’s annual meeting, which draws nearly 40,000 people to Omaha each year in a pilgrimage to see investor Warren Buffett, will be streamed over the Internet this year for the first time, the company’s chief financial officer told The World-Herald.

That could have implications for the city’s tourism industry: People from around the globe descend on Omaha each year, filling hotels and restaurants. They also shop at Berkshire-owned stores, which offer discounts to shareholders during the annual meeting weekend. Will it keep people away from fair Omaha, which once a year is dubbed Woodstock for Capitalists?

Meeting Ted Weschler (Yaniv's Blog)

Many value investors, at some point of their careers, get to “see the light” and move away from investing in what’s called “cigar butt investing” (bad business at a great price) to investing in companies that trade at richer valuations but have great underlying businesses (great businesses at a reasonable price). The fortunate few, manage through this transition without a negative impact on performance. I asked Ted about this transition process and how he sees the two approaches. He said that when you try to map the risks that inherent to a “cigar butt” investing you end up with a much longer list than when you carry out the same exercise with a high quality business. Of course, many investors manage to achieve great performance over time with the bad-business-at-a-great-price approach so that is not to say that there is anything wrong with this approach–these are just two different styles. [...]

Berkshire purchases Castparts for $37B (Lincoln JournalStar)

Berkshire Hathaway completed its $37.2 billion acquisition of Precision Castparts on Friday.

Berkshire Hathaway’s acquisition of the manufacturer of components for aircraft, power plants and other industries reportedly is its biggest deal ever.

Warren Buffett agreed to purchase Precision Castparts in August.

Berkshire Hathaway names new board of directors for Precision Castparts (Omaha World-Herald)

In a securities filing Thursday, Berkshire said the directors are Warren Buffett, chairman and chief executive of Berkshire; Todd Combs, a Berkshire investment officer; Marc Hamburg, chief financial officer of Berkshire; and three Precision Castparts executives: CEO Mark Donegan, corporate counsel Ruth Beyer and Shawn Hagel, chief financial officer.

Donegan and Hagel were directors before Berkshire’s $32 billion purchase of Precision Castparts [...]

Musk vs. Buffett: The Billionaire Battle to Own the Sun (Bloomberg)

Buffett got into utilities in 1999. While many investors chased the latest Silicon Valley IPO, he bought a nice electric company in Des Moines. Building power plants and maintaining the grid offered almost endless opportunities to reinvest cash, which he had a lot of. And, as a monopoly providing an essential service, the local power company wasn’t going away anytime soon. Owning utilities isn’t “a way to get rich,” he later said. “It’s a way to stay rich.”

By 2013 the energy unit at Berkshire had expanded to include power companies serving parts of Oregon, Washington, Idaho, Wyoming, and Utah. It had also invested billions of dollars in wind farms in Iowa and giant solar arrays in California and Arizona. Two months after SolarCity got its love money from Nevada, Buffett offered $5.6 billion to buy NV Energy. Soon after Berkshire completed the purchase, NV Energy accounted for about a fifth of the company’s energy revenue. [...]

Buffett's BNSF to Cut Spending $1.5 Billion as Cargo Slumps (Bloomberg)

BNSF Railway Co., the railroad owned by Warren Buffett’s Berkshire Hathaway Inc., plans to reduce capital expenditures for the first time in six years as railroads seek to rein in costs amid a freight slump.

The rail carrier said Tuesday that it will spend $4.3 billion, down 26 percent from a record $5.8 billion in 2015, on locomotives, rail cars, track and maintenance. BNSF had increased investment since 2010, which marked a six-year low of $2.7 billion. [...]

Warren Buffett ups stake in Phillips 66 — again (Houston Business Journal)

Warren Buffett’s Nebraska-based Berkshire Hathaway Inc. has further increased its stake in Houston-based Phillips 66.

During the first three days of February, the company bought about 1.7 million Phillips 66 shares for nearly $132 million, according to CNBC. That means that over the past 30 days alone, the company has bought 12.5 million shares for $964 million.

The company now owns 73.98 million shares — or nearly 14 percent of Phillips 66 — worth about $5.9 billion, the Associated Press reports. [...]

What Happens After Warren Buffett Leaves Berkshire Hathaway? (Fool)

Warren Buffett has made it clear that the board of directors already knows who Berkshire's next CEO will be. And while the identity of that person remains a secret, we do have a couple of clues:

Berkshire's directors believe that future CEOs should come from internal candidates.

The new CEO will be relatively young -- Buffett wants the next CEO to stay on the job for decades and says that the company will operate best if its CEOs stay for 10 years or more. [...]

Warren Buffett will be advisor for 'Celebrity Apprentice' (CNBC)

Warren Buffett continues to raise his public profile with an upcoming appearance on the new season of NBC's "The Celebrity Apprentice."

In a news release, the network says that Buffett, "one of the most successful businessmen in the world," will be an advisor on the program, along with former Microsoft chief and Los Angeles Clippers owner Steve Ballmer, model and businesswoman Tyra Banks, actress and entrepreneur Jessica Alba, and entertainment attorney Patrick Knapp Schwarzenegger. [...]

Berkshire News Briefs - 1/22/16

Buffett's Mobile-Home Unit Should Be Probed, Lawmakers Say (Bloomberg)

U.S. lawmakers called for federal investigations into Clayton Homes, the mobile-home business at Warren Buffett’s Berkshire Hathaway Inc., after the Seattle Times and BuzzFeed News wrote that the company targeted minority borrowers and charged them higher interest rates on average than whites. [...]

Berkshire Hathaway's Clayton Homes Problem (Fool)

Clayton has always been an interesting case in the manufactured homes business because it has managed to survive and thrive while competitors have gone into bankruptcy. The three largest manufactured housing companies at the turn of the 21st century all went bankrupt in the decade that followed. [...]

Clayton Homes isn't exactly a needle-moving company for the Omaha-based conglomerate. Last year, Clayton generated $558 million in pre-tax profits, a mere fraction of Berkshire's pre-tax earnings of $28.1 billion for the full year. Clayton is a headline risk, and not much more.

Buffett's Berkshire Hathaway boosts stake in Phillips 66 (Houston Business Journal)

Warren Buffett’s Nebraska-based Berkshire Hathaway Inc. has upped its stake in Houston-based Phillips 66, even as oil prices keep hitting new lows.

The Associated Press reports that Berkshire recently bought an additional 759,295 shares of Phillips 66. That brings Berkshire’s stake to 62.3 million shares, or about 12 percent of the oil refiner's stock, according to the AP. [...]

Berkshire Hathaway: 3 Key Factors for 2016 (Fool)

Berkshire is large and diversified, but three components of the business really move the needle. The performance of its insurance units, the BNSF railroad, and the stock portfolio and put options overshadows virtually everything else.

With that in mind, here are a few particular issues underlying the three major drivers of Berkshire's bottom line. [...]

SolarCity cuts 550 jobs in Nevada after Buffett win (Salt Lake Tribune)

SolarCity Corp. plans to eliminate more than 550 jobs in Nevada, most of its employees in the state, after regulators approved new utility fees on solar rooftops. [...]

NV Energy, a unit of Warren Buffett's Berkshire Hathaway Inc. that owns Nevada's two biggest utilities, had sought the changes to recoup money that it says solar customers aren't paying for grid operations. The company's monthly fee for solar customers has jumped 40 percent to $17.90.

Green light for Walnut Ridge (reNews)

Illinois county officials have approved Berkshire Hathaway’s 215MW Walnut Ridge wind farm, overruling the local zoning board of appeals that had rejected the proposal. The Bureau County Board this week voted to grant conditional use permits for 118 turbines. Nine applications were denied because they were too close to two landing strips.

Walnut Ridge is owned by BHE Renewables, a wholly owned subsidiary of Iowa-based Berkshire Hathaway Energy. The project includes two substations. BHE plans to start construction this year and achieve commercial operation in 2017. [...]

5 Mind-Blowing Numbers From Warren Buffett’s Stock Portfolio (Fool)

$128 billion: This is the current market value of Berkshire Hathaway's holdings, assuming it didn't buy or sell a share of stock during the fourth quarter of 2015.

If Berkshire's stock portfolio were a stand-alone company, it would have the 37th largest market capitalization, sitting behind computer giant IBM and just before pharmaceutical company Allergan. [...]

Securities Trader to Forfeit More Than $11 Million for Role in Hacking Scheme (WSJ)

Following up on an older story from last summer...

A securities trader agreed to give up more than $11 million for his role in an international hacking scheme that authorities say netted the group millions of dollars by trading on confidential financial information. [...]

Hackers, the authorities said, targeted Marketwired LP, UBM PLC’s PR Newswire and Berkshire Hathaway Inc.’s Business Wire.

NetJets Announces Brand Partnership with Tennis Star & Olympian Maria Sharapova (BusinessWire)

NetJets® Inc., a Berkshire Hathaway company and the worldwide leader in private aviation, announced its newest brand partnership with tennis great Maria Sharapova. NetJets is the official private aviation partner for Ms. Sharapova.

In her role as a brand ambassador, Ms. Sharapova will work with NetJets’ marketing, with a particular focus on social media. She will also provide exclusive experiences for NetJets owners throughout the partnership. [...]

Berkshire News Briefs - 12/14/15

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Warren Buffett just bought this stock personally (CNN Money)

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

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

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

2016 Berkshire Hathaway Annual Meeting Dates Announced (Guru Focus)

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

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

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

And he still plays the ukulele.

Berkshire News Briefs - 9/28/15

Charlie Munger: Buffett’s ‘Abominable No-Man’ (Think Advisor)

Sharp as a tack and blunt as Lenny Bruce, Charlie Munger, Warren Buffett’s peppery longtime business partner, is the not-so-secret sauce in the Oracle of Omaha’s extraordinary investing success.

Munger, the curmudgeonly 91-year-old vice chairman of Buffett's holding company, Berkshire Hathaway, is a humorous, deep-thinking billionaire whose judgment has been indispensable to growing Berkshire into a $360 billion-plus enterprise. Indeed, last year it picked up $18.3 billion in net worth.

Now comes “Charlie Munger: The Complete Investor” (Columbia University Press-Columbia Business School Publishing), by Tren Griffin, a book that neatly ties together the astute nonagenarian’s investing acumen in just under 200 pages. [...]

Kraft Heinz, Phillips 66 Targeted by Fake Securities Filings (WSJ)

Two separate filings that said they were submitted by Loreto M. Zamora on behalf of LMZ & Berkshire Hathaway Co. to the Securities and Exchange Commission on Thursday morning claimed to hold at least 10% stakes in both Kraft Heinz and Phillips 66.

Both companies told The Wall Street Journal that the filings are fraudulent and they have contacted the SEC. Warren Buffett, whose Berkshire Hathaway Inc. owns stakes in the food and energy companies, said in an email that he has never heard of Mr. Zamora. [...]

Could Warren Buffett's Utility Empire Be in Trouble? (Fool)

No matter where you look, particularly in Nevada, utilities are under serious pressure from customers looking to find lower-cost and cleaner energy elsewhere. Now that Buffett is one of the largest utility owners in the country, he's directly at odds with some of these trends.

Wynn Resorts is offering $15 million to break ties with NV Energy, and if it weren't for a limit on distributed solar in Nevada, there would be thousands of customers putting up their own generation systems.

The dual threat shows the challenge utilities are facing as the energy industry evolves. [...]

Borsheims CEO Goracke plans visit to share a wealth of retail knowledge with UNK students (Kearney Hub)

When Karen Goracke was approached to be University of Nebraska at Kearney’s Executive in Residence this fall she was at first surprised, then ecstatic. [...]

Giving back, by sharing her knowledge and ideas with students, is something the Borsheims CEO has been waiting to do. The College of Business and Technology Executive in Residence will give her that chance: To talk to students, visit with faculty and play a mentor role to anyone who wants to learn more about retail, Berkshire Hathaway, working for Warren Buffett, merchandising, accounting, sales – her list of what she wants to talk about is long. [...]

Perpetrators of a $10-Million Telemarketing Scam that Used Warren Buffett and Berkshire Hathaway's Names as Baits (Realty Today)

According to the indictment, Jonathan Papa and Methsiri "Lal" Palliyaguru sold phony investments in certificates of deposit and real estate to nearly 200 investors, primarily American senior citizens. They knowingly misrepresented that Warren Buffett and Berkshire Hathaway were involved with the purported real estate investments, in order to lure in unsuspecting investors who idolize Buffett and Hathaway.

Ndamukong Suh and Warren Buffett huddle up (Lincoln Journal Star)

[...] “Every time, we have a great conversation,” Suh said. “And they’re really conversations around the concepts of business or understanding commodities, how it can all work together. It’s not (Buffett saying), ‘You should go pick this stock.’

“He knows my goals, and he’s like, ‘You should think about this’ or ‘This is some advice from people I’ve worked with.’ It’s also him with open arms saying, if you want to learn about something else, if you want to learn about the aviation business — which is something I’m very into — he said, ‘I own NetJets’ and opened the door for me to go out and learn from those people.” [...]

Billionaire Warren Buffett is ready to sub in for Ndamukong Suh (CBS Sports)

When you're worth $70 billion you can do whatever you want and sometimes doing whatever you want includes showing up at a Dolphins game wearing shoulder pads and an Ndamukong Suh jersey.

That's exactly what billionaire Warren Buffett did on Sunday. The third-richest man in the world showed up on the Dolphins sideline before their game against Buffalo and Buffet definitely wasn't wearing his normal suit-and-tie combo. [...]

Berkshire News Briefs - 9/11/15

Warren Buffett says Berkshire Hathaway still shopping abroad (Reuters)

Billionaire investing icon Warren Buffett said on Tuesday there are dozens of countries in which his sprawling Berkshire Hathaway Inc conglomerate would be interested in buying new businesses.

Berkshire earlier this year agreed to acquire a German motorcycle apparel and accessories retailer - a purchase that Buffett described as an advertisement to markets that he is shopping abroad. [...]

Berkshire Hathaway Inc. Increases Holdings in Phillips 66 (Business Finance News)

Berkshire Hathaway Inc. increased its investment in Phillips 66. The purchase of another 3.51 million shares of US oil refiner has sum the total number of stakes to 11.4%. Berkshire now holds about 61.5 million shares in the company, with net worth of $4.98 billion. [...]

Another reason for Mr. Buffet’s investment might be that Phillips is one of the customers of Berkshire’s Burlington Northern Santa Fe (BNSF) railroad division. With the supply glut in the economy, more refining opportunities existed for refiners. In order to get the oil to the markets, Phillips turned towards BNSF for service. An increased stake in Phillips 66 might be in best interest of BNSF. [...]

Of would-be $1B fees, trips to Omaha and hardball negotiating: Behind the scenes of the Precision-Berkshire deal (Portland Business Journal)

A new Securities and Exchange Commission document outlining specifics of the pending Precision Castparts Corp. sale to Berkshire Hathaway offers insights into the worlds of two upper-echelon business leaders. [...]

Before the companies reached that point, though, many pieces needed to all into place. Here's a truncated timeline, based on last week's SEC filing. [...]

Follow Buffett Reinsurance Guru’s Sage Advice (WSJ)

When Ajit Jain can’t see value in reinsurance, investors across the industry should worry.

The man who runs Warren Buffett’s reinsurance business told The Wall Street Journal this summer that Berkshire Hathaway would be putting more money into normal commercial and retail insurance instead.

Mr. Jain’s views are almost as influential among reinsurers as Mr. Buffett’s are among investors. [...]

Symmonds' stand a boost for Seattle-based Brooks Running (King 5)

[...] Symmonds, after all, is a two-time Olympian and six-time U.S. Champion. He won the 800-meter race at the U.S. Nationals earlier this year and was poised to be a part of last week's events.

That was until he was asked to sign a document.

"I'm outspoken and some would say brash, arrogant, I don't know," he said. But he felt like he needed to take a stand, when USA Track and Field required him to sign a Statement of Conditions to take part in the competition. He declined. "I wasn't going to sign a contract without all the terms defined."

That's because Symmonds felt the contract required him to wear Nike branded Team USA gear all the time in Beijing. He's sponsored by Seattle-based Brooks Running and says he's a loyal guy.

"I'm a businessman and when you have partners you try to protect those partners. I want to run for Brooks for another 10 years."

Nevada solar update: Senator Harry Reid takes on Warren Buffet’s Berkshire Hathaway in net metering debate (Lexology)

Nevada’s solar net metering policies will continue until year end, perhaps in part thanks to Senator Reid (D-NV) who threatened to intervene in the state’s Public Utilities Commission’s (PUC) review of the policy. Senator Reid, a staunch renewable energy advocate, believed that residential solar in Nevada had gotten a “lousy deal,” and pointed the finger at Warren Buffet’s Berkshire Hathaway. [...]

While NV Energy is promoting policies that make roof top solar potentially uneconomic, Warren Buffet has boosted his holding company’s massive investments in large-scale renewable energy—an attractive investment in the state due to Nevada’s ample solar incentives for industrial sized installations for businesses and power companies. [...]

Richline Debuts Wearable Style News Website (IDEX)

The Richline Group has announced the launch of a wearables news website. The company says that WearableStyleNews.com “brings a unique ‘function needs fashion’ perspective to the rapidly growing world of wearables.”

The site will focus on the designers, technologists, and manufacturers who are leading the wearable industry. The blog features curated and original content, including interviews with industry talent such as Uri Keren, CEO and co-founder of Hermes Innovation, Scott Amyx of Amyx+McKinsey and Amanda Parkes, Chief of Technology & Research for Manufacture NY. [...]

Warren Buffett On LTCM, Blind Spots, Leverage, and Unnecessary Risk (Alpha Architect)

Notes and highlights from a Buffett talk from 2007. The full talk and Q&A is on YouTube.

Here's an excerpt of Buffett talking about the collapse of Long-Term Capital Management (LTCM):

The whole story is really fascinating because if you take John Merriwether, and Eric Rosenfeld, Larry Hilibrand, Greg Hawkins, Victor Haghani, the two Nobel Prize winners, Merton and Scholes, if you take the 16 of them, they probably have as high an average IQ as any 16 people working together in one business in the country…an incredible amount of intellect in that room. Now you combine that with the fact that those 16 had had extensive experience in the field they were operating in…In aggregate, the 16 had probably had 350 or 400 years of experience doing exactly what they were doing. And then you throw in the third factor that most of them had virtually all of their very substantial net worths in the business. So they had their own money up. Hundreds and hundreds of millions of dollars of their own money up. Super high intellect, working in a field they knew. And essentially they went broke. And that to me is fascinating. [...]

Berkshire News Briefs - 9/4/15

Berkshire Hathaway Takes Larger Stake in Phillips 66 (NY Times)

Berkshire Hathaway, the holding company led by Warren E. Buffett, disclosed a $4.48 billion stake in the oil refiner Phillips 66, rebuilding a bet Berkshire had made in the energy industry before oil prices fell.

Berkshire’s stake of 57.98 million shares, or roughly 10.8 percent of the stock, was revealed on Friday night in a filing with the Securities and Exchange Commission. [...]

Mr. Buffett’s company once held a large stake in Phillips 66, which is based in Houston, but shed nearly two-thirds of it in February 2014 when Berkshire swapped $1.35 billion worth of shares for a chemicals business that it folded into its Lubrizol unit.

Crude oil prices have since fallen more than half, though Phillips 66’s share price has dropped less than 1 percent.

Buffet’s Solar “Insurance” Coup In Nevada (OilPrice)

Nevada utility company NV Energy is ideally positioned to benefit from solar power. Nevada is one of those states with a lot of sun, a lot of land, and not many people. The Nevada wilderness is a great place to economically develop large scale solar projects. The cheap cost of land, abundant sunshine, and lack of serious environmental obstacles are all a boon for NV Energy – so much so that the firm just signed a deal to buy solar power at an unbelievably cheap rate of less than 4 cent per kWh. [...]

But in addition to the profit value of generating power at this price point, the deal has another big benefit for NV Energy; it can be used to start squashing the complaints about NV Energy’s roof top solar program. [...]

NetJets fails to reach agreement with pilots in contract dispute (Omaha World Herald)

Berkshire Hathaway Inc.’s NetJets shared-aircraft company and its pilots union did not reach an agreement on a new labor contract by Thursday, as they had hoped. [...]

In a statement posted online, Johnson said bargaining teams had made “remarkable” progress and settled non-economic issues “with a few exceptions.” But the two sides are “a long way apart” on pay and benefits, Johnson said [...]

Union President Pedro Leroux said in a statement that the impasse is “because of company proposals to cut insurance benefits while shifting additional health care costs to the workforce, and pay issues.”

Berkshire Hathaway now fourth place in reinsurance market (Canadian Underwriter)

Berkshire Hathaway Inc. has jumped ahead of SCOR SE in the reinsurance market, replacing the Lloyd's market as the fourth-largest reinsurance group in 2014, A.M. Best Company Inc. suggests in a report released Wednesday. [...]

The top three reinsurance groups, in order, are Munich Reinsurance Company, Swiss Re Ltd. and Hannover Rueckversicherung AG, in 2014 [...] Those are unchanged from 2013. Omaha, Nebraska-based Berkshire Hathaway, which placed sixth in 2013, ranked fourth in 2014.

MedPro Group Finalizes Acquisition of PLICO (MarketWatch / BusinessWire)

MedPro Group (MedPro), a Berkshire Hathaway subsidiary, announced yesterday the completion of its acquisition of PLICO, Inc. (PLICO), one of the Southwest’s premier healthcare liability insurers, from the Oklahoma State Medical Association (OSMA). [...]

PLICO employs about 30 employees, serves over 2,200 Oklahoma healthcare providers, and has annualized gross written premiums of approximately $30 million.

Danish restaurant menu gives Buffett a shoutout (Omaha World Herald)

Omahans Tom and Marilyn Byers shared an outdoor table at the waterfront Cafe Razz in Middelfart, Denmark, earlier this month and spotted the most expensive item on the elegant menu: the “USA Greater Omaha Ribeye,” priced at 350 kroner, about $70.

A translated description from the menu: “The cattle come from Omaha, Nebraska, United States ... known for Buffalo Bill, Warren Buffett and the Missouri River. The meat is specially selected and of the best quality. 375g of meat, served with fried potatoes and pepper sauce or Béarnaise sauce and the free salad bar.” [...]

Berkshire News Briefs - 8/21/15

This was 13F week, where Berkshire Hathaway submits its portfolio changes to the SEC each quarter. As always, you can find updated holdings and activity details at Dataroma.

Berkshire Hathaway hints at new purchase, ups Charter stake (Reuters)

Warren Buffett's Berkshire Hathaway Inc on Friday said it boosted its stake in cable TV operator Charter Communications Corp, and signaled it may have another large investment planned after agreeing to buy Precision Castparts Corp in its largest-ever purchase. [...]

Berkshire kept some details about its holdings confidential. The SEC sometimes lets the Omaha, Nebraska-based company delay disclosures of new stakes so Buffett can build them quietly, rather than have investors piggyback on him before he finishes. [...]

Berkshire reported lower stakes in conglomerate Chicago Bridge & Iron Co, media company Viacom Inc and Wabco Holdings Inc, which sells braking and suspension systems for commercial vehicles.

Warren Buffett’s Berkshire Hathaway Sells Off Shares in Phillips 66, National Oilwell Varco (WSJ Moneybeat)

Warren Buffett’s Berkshire Hathaway Inc. sold off its shares in Phillips 66 and National Oilwell Varco Inc. in the second quarter, as it continued to cut its positions in energy companies amid a global supply glut that has sent crude prices into a tail spin.

Berkshire had already sold most of its stake in National Oilwell Varco in the first quarter, when it slightly raised its Phillips 66 holdings. [...]

Berkshire’s only new stake in the quarter was a 20 million share investment in auto-paint maker Axalta Coating Systems Ltd., which Berkshire bought from Carlyle Group LP for $28 a share.

Buffett’s Precision Castparts Deal Will Boost Berkshire Hathaway’s Value (Barron's)

Precision Castparts, a once fast-growing supplier to the airline industry, looks to be a good—not great—deal for Berkshire. Its profits have been pressured due to the company’s exposure to the energy industry. The shares were down 20% year to date before the Berkshire announcement, although the company has been a huge winner under CEO Mark Donegan. [...]

Berkshire is paying $235 a share, or about 19 times Precision’s earnings for the fiscal year ending March 2016. That implies an earnings “yield” of 5.5%, well above the near-zero yield Berkshire has been earning on its cash, which totaled $60 billion on June 30. Berkshire’s return could be closer to 7% initially because it will issue about $10 billion of low-cost debt to finance the deal.

After hacking scheme, it's time to rethink how companies use wire services (PR Week)

Business Wire sent an e-mail to its clients with a letter from CEO Cathy Baron Tamraz. It began, "We understand your concerns surrounding this week’s federal indictment of a global hacking…We would like to take this opportunity to provide you with the story behind the headlines."

The letter explained that government investigators asked Business Wire about fewer than 85 releases, and pointed out that no examples listed in the indictments and the SEC complaint were Business Wire releases.

"Despite our extreme vigilance, today's reality is that no one today is immune from hacking," it continued. "We want to reassure you that Business Wire’s systems are safe and secure. We continue to work closely with a leading cybersecurity firm to ensure that they remain so."

Warren Buffett's Berkshire Hathaway gets special ASX treatment in IAG deal (Sydney Morning Herald)

The Australian Securities Exchange has granted billionaire Warren Buffett's Berkshire Hathaway poll position in any future capital raisings by Insurance Australia Group, which has raised the hackles of some investors, and proxy adviser group Ownership Matters.

IAG, which has one of the biggest shareholder bases of companies listed on the local exchange, was granted a waiver that would permit Berkshire anti-dilution rights for its shares in the insurer.

The initial deal between IAG and Berkshire, which saw the insurance giant sign away 20 per cent of its business to the US group, was announced in June but not many investors were aware of the waiver. [...]

Sure, but what does that mean in layman's terms?

The hidden catch to Berkshire Hathaway’s Insurance Australia Group Ltd investment (Fool Australia)

If IAG were to issue say, one new share for every thirty held, this would normally dilute NICO who currently holds one share in every twenty (5%) on issue. However, as it has this anti-dilution protection, NICO will be entitled to buy one share for every twenty it holds.

If NICO happened to hold 10%, it would be entitled to 10% of the new shares to be issued.

Buffett-Backed Kraft Heinz Cuts 2,500 Jobs as Hees Targets Costs (Bloomberg)

Kraft Heinz Co., the food company that counts Warren Buffett’s Berkshire Hathaway Inc. as its largest shareholder, is eliminating about 2,500 jobs in the U.S. and Canada under the new management. [...]

Kraft Foods and H.J. Heinz merged in July in a deal orchestrated by Buffett and 3G Capital, which jointly controlled the ketchup company. 3G’s Bernardo Hees, who is now running the combined foodmaker, cut more than 7,000 jobs in 20 months after taking over at Heinz. Berkshire Vice Chairman Charles Munger has endorsed the job cuts, saying such measures are essential to a productive capitalist system.

The alternative to reducing staff is “what happened in Russia,” Munger said at Buffett’s annual meeting in May. “The whole damn economy didn’t work.”

How Much Is Warren Buffett’s $5 Billion Investment in Bank of America Worth Today? (Fool)

At the low point of Bank of America's post-financial crisis struggles, Warren Buffett became its biggest advocate by investing $5 billion of Berkshire Hathaway's money into the nation's second biggest bank by assets. [...]

When you include the $5 billion in preferred stock, Berkshire Hathaway's investment in Bank of America is worth a total of $12.2 billion. That equates to a 144% gain in four years -- 168% if you also account for the roughly $1.2 billion in cumulative dividend payments on its preferred stock.

How rich Warren Buffett was at your age (Business Insider)

By age 43, Buffett's personal net worth was at a high of $34 million. He used some of this capital the year prior to purchase See's Candies for $25 million, reports The Motley Fool, and it became an investment that's still profitable in 2015. But, the mid-1970s proved to be a rough period for Berkshire. By 1974, its decreasing share price lowered Buffett's net worth to $19 million when he reached 44, reports Dividend.

Never one to let his savvy investment skills fall by the wayside, Buffett was able to recover financially. By the end of the decade, he had increased his net worth to $67 million at age 47. By the close of the 1970s, the median U.S. household income was $16,530.

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.