Berkshire News Briefs - 6/20/18

Buffett, Bezos, Dimon appoint Dr. Atul Gawande as CEO of their newly formed health-care company

Dr. Atul Gawande will lead the joint health-care venture between Amazon, J.P. Morgan and Berkshire Hathaway, the three companies announced Wednesday.

Berkshire Hathaway CEO Warren Buffett, J.P. Morgan CEO Jamie Dimon and Amazon CEO Jeff Bezos announced a partnership in January to tackle rising health-care costs.

They will form a new company for the venture, which will be headquartered in Boston, a hub for biotechnology and medical research. It will be "free from profit-making incentives and constraints. [...]

USG takes $7 billion offer from Knauf after spurned advances

Sheetrock maker USG Corp accepted a $7 billion cash offer from German construction products maker Gebr Knauf KG on Monday after three months of back-and-forth negotiations that began when longtime USG shareholder Warren Buffett teamed up with the German bidder to sell his stake.

The companies agreed to a $44 per share deal, a bump from the $42 initially offered by the private German family-owned company in late March. Buffett’s Berkshire Hathaway Inc had a 31 percent stake in USG and has said previously it would offload its stake. [...]

The Berkshire Hathaway investment dates back to 2001, when Buffett helped the company out of bankruptcy with a loan that was later converted to a stake in the company’s equity so large that a wholesale acquisition of the entire company remained one of the few ways for Berkshire to exit the investment without pushing down the share price. [...]

Buffett, Dimon urge end to quarterly profit forecasts

Investor Warren Buffett and JP Morgan Chase CEO Jamie Dimon are encouraging public companies to stop predicting their quarterly earnings and focus on long-term goals.

The two executives said on CNBC Thursday that companies that focus on hitting their quarterly numbers may do things that hurt them in the future, such as delaying investments or changing when certain gains are recorded. [...]

Grainger Is Caught Between an Amazon and a Buffett

[...] Intriguingly, Grainger may now have other competition via Warren Buffett's Berkshire Hathaway Inc., which last year acquired Production Tool Supply. The deal wasn't publicized, but the company has since used it to launch Berkshire eSupply, a wholesale service business that aims to provide smaller distributors with access to e-commerce platforms, fulfillment services and a greater product offering than they’d otherwise be able to support. [...]

Warren Buffet visits metro to announce new GEICO service center, 500 new jobs in Lenexa

Warren Buffett is bringing what he calls his favorite company to [the Kansas City metro area]. GEICO Insurance will open a service center in Lenexa, bringing 500 jobs.

Kansas Gov. Jeff Colyer and billionaire CEO Warren Buffett joined representatives from the city of Lenexa, Johnson County and Geico on Tuesday morning to make the announcement. [...]

Lenexa city leaders said the city did not offer any financial incentives to lure GEICO but said the state did offer some incentives. [...]

Warren Buffett helps Israel sell $80 million in bonds at Omaha dinner

Warren Buffett hosted a dinner in Omaha this week for investors who bought $80 million worth of Israel Bonds, a source of revenue for a country where Berkshire Hathaway Inc. has a major investment.

The dinner at the Fred & Pamela Buffett Cancer Center was the second time Buffett has helped the Israeli group, the Development Corporation for Israel, formed in 1951 to raise money to build Israel’s economy. Since then, the bonds have raised about $41 billion.

Giving it Away: The Other Buffett Family Business

[...] Now 64 with two grown children, Susie Buffett has a more-than-full-time day job. Her Sherwood Foundation, formerly known as the Susan A. Buffett Foundation, gave away $141 million in 2016, according to the most recent IRS filing, funding dozens of nonprofit initiatives in education, social justice, and poverty alleviation. That’s everything from a local ballet company to Big Brothers/Big Sisters to a black police-officers group to Omaha’s Bike Union—and those are just the Bs. Each of these groups is carefully evaluated before the first check is cut. “I don’t want to come off like I’m complaining,” Buffett says. “I am grateful beyond words for what we get to do. But it’s not so easy to try to do it well, and we are trying to do it well.” [...]

Two billionaires walk into an Omaha Dairy Queen. A blizzard of excitement ensues

Omaha did a double-take when folks there spotted Warren Buffett and Mark Cuban eating lunch Monday in Buffett's hometown at the Dairy Queen near 72nd and Q streets. [...] Cuban, the owner of the Dallas Mavericks, memorialized his trip to the land of Dilly Bars on his Instagram, where he shared a photo of the two men. [...]

The Omaha World-Herald got the scoop on at least one topic that came up over lunch — basketball. [...] Buffett's office would not disclose what else the two men talked about, the newspaper reported. [...]

Berkshire News Briefs - 3/12/16

This week's post got really long, so I broke it in two. News about Berkshire Hathaway itself in this post, news about subsidiaries coming next in a second post...

Berkshire after Buffett: One thing may not change (CBS MoneyWatch)

Most interesting, more and more major shareholders are becoming convinced that they should stick with Berkshire. They've been increasingly assured that with Buffett's decentralized management style -- unit managers operate independently and make their own business decisions -- a solid structure has been put in place that would enable Berkshire to operate soundly even after his departure. [...]

Another wealth manager at a major Wall Street investment bank noted that there could be "initial rush selling" once Buffett announces the exact date of his retirement, but "that would definitely inspire us to jump in and buy more shares when the stock tumbles as a result."

Buffett’s Berkshire Plans $9 Billion Bond Sale to Repay Loan (Bloomberg)

Warren Buffett’s Berkshire Hathaway Inc. sold $9 billion in debt, the conglomerate’s biggest bond deal ever, in the latest offering from a blue-chip company tapping investor demand for the most creditworthy borrowers.

Berkshire sold the debt in seven parts, according to data compiled by Bloomberg. Proceeds will help pay down a $10 billion loan used to finance its purchase of Precision Castparts Corp. Buffett had said earlier that Berkshire used about $23 billion of its cash for the deal and would borrow the rest. [...]

Investor orders for Berkshire Hathaway bond sale hit $34bn (Financial Times)

Investor orders for a piece of a $9bn Berkshire Hathaway bond sale eclipsed $30bn on Tuesday, as the conglomerate headed by Warren Buffett sought to repay bank loans used to finance its $36bn takeover of Precision Castparts. [...]

Orders for the year’s fourth-largest transaction hit $34bn, climbing rapidly as banks closed their books, one person familiar with the situation added. [...]

Nebraska Peace Foundation calls for report on risks Berkshire Hathaway faces from climate change (Omaha World-Herald)

The Nebraska Peace Foundation is asking Berkshire Hathaway Inc. to issue a report describing the risks it faces from climate change and the “initiatives and goals relating to each risk issue identified.” [...]

In the letter and proxy draft, Buffett said it is “highly likely” that climate change “poses a major problem for the planet.” [...]

But although climate change may cause disasters, Buffett said, Berkshire’s property insurance operations do not risk significant losses from such disasters.

That’s because the companies would adjust their premiums and exposure to claims if climate change begins to cause more property damage, which hasn’t happened yet, he said. [...]

Comments on Mistakes and Buffett’s Original Berkshire Hathaway Purchase (ValueWalk)

I noticed a passage in last year's letter that is relevant to the topic—Buffett himself was attracted to buybacks on a dying business—Berkshire Hathaway in the early 1960's. Berkshire was a Ben Graham cigar butt—it was trading at around $7 and had net working capital of $10, and book value of $20. Berkshire was a classic “net net”—a stock trading for less than the value of its cash, receivables, and inventory less all liabilities. Buffett liked the fact that Berkshire was a) trading at a cheap price relative to liquidation value, and b) using proceeds from the sale of plants to buy back shares—effectively liquidating the company through share repurchases. [...]

Why Berkshire Hathaway Is Expected to Outperform SPY in 1Q16 (Market Realist)

7 parts, focusing on the different areas of Berkshire Hathaway (BNSF, Energy, Manufacturing, etc.)

Berkshire’s holdings have been performing on the back of insurance, financials, and manufacturing. Chairman and CEO Warren Buffett is deploying cash for buying stocks at attractive valuations. Berkshire’s recent investments include Precision Castparts (PCP) and Kinder Morgan (KMI). [...]

3 Big Competitive Advantages of Berkshire Hathaway (Fool)

Berkshire Hathaway is a unique business. It's primarily an insurance company, but it also sells furniture, energy, homes, underwear, and private jets. And the company has amassed a stock portfolio that would make most long-term investors jealous. One of Warren Buffett's biggest criteria when deciding what to buy is identifiable competitive advantages -- of which Berkshire has quite a few of its own. [...]

Berkshire News Briefs - 3/7/15

Berkshire Hathaway at 50: Things Have Never Looked Better (Fool)

On Saturday, Warren Buffett released his Golden Anniversary shareholder letter, followed by yesterday's release of Berkshire Hathaway's 2014 annual report. (2015 marks a half-century since Buffett took control of a struggling New England textile business by the name of Berkshire Hathaway.) Mr. Buffett's message is one of optimism, tempered by a dispassionate assessment of the facts: In terms of financial strength, earnings power, and permanence, Berkshire Hathaway appears better positioned than ever -- even as the end of Mr. Buffett's tenure draws ever nearer.

Grading Berkshire after 50 years under Buffett: How does a 1,826,163% stock rise sound? (Fortune)

Here’s another lollapalooza, brought into public view by a quiet change in the report. To the performance table that has always contained only Berkshire’s book value per share and the S&P 500 index, Buffett has added the historical record of Berkshire’s stock price. And there the record is, on the page facing Buffett’s shareholder letter: 50 years of percentage increases and declines in Berkshire’s stock, followed by two summations. For the half-century—for all the years of Buffett’s management—the price grew at a compound annual rate of 21.6%. The gain, overall, was 1,826,163%.

Berkshire Hathaway Wooed by Europe’s Low Borrowing Costs (WSJ)

Warren Buffett ’s Berkshire Hathaway raised €3 billion ($3.3 billion) on Thursday from its first-ever debt sale in Europe. The deal is the latest in a surge of U.S. companies crossing the Atlantic to sell bonds in euros, taking advantage of the region’s slender borrowing costs. Berkshire Hathaway sold three bonds that will mature in eight, 12 and 20 years. Those bonds priced to yield 0.8%, 1.24% and 1.648%, respectively, all close to record lows for those maturities.

6 Quotes From Berkshire Hathaway's Greatest Ever Shareholder Letter (Fool)

Will the "Berkshire system" ensure continued success, despite its size, and after Buffett? Buffett says yes: "Despite our conservatism, I think we will be able every year to build the underlying per-share earning power of Berkshire. That does not mean operating earnings will increase each year -- far from it. The U.S. economy will ebb and flow -- though mostly flow -- and when it weakens, so will our current earnings. But we will continue to achieve organic gains, make bolt-on acquisitions, and enter new fields. I believe, therefore, that Berkshire will annually add to its underlying earning power."

BNSF oil train derails in rural Illinois; two cars aflame (Reuters)

A BNSF Railway train loaded with crude oil derailed and caught fire on Thursday afternoon in a rural area south of Galena, Illinois, according to local officials and the company. [...] Dark smoke was seen for miles around the crash site, and the Illinois Environmental Protection Agency told local WREX.com that two of the cars were potentially on fire. The train with 105 loaded cars - 103 of them carrying crude oil - derailed around 1:20 p.m. CST (1920 GMT), according to a BNSF statement. The incident occurred on what appears to be a major rail line alongside the Mississippi River that handles as many as 50 oil-trains a week, one official said.

Why Warren Buffett Is Worth $72 Billion and You’re Not: Two Theories on Berkshire Hathaway (NY Times)

Academics who study corporate finance overwhelmingly believe that conglomerates — giant companies that operate in a wide range of industries, often built through acquisitions — are an awfully inefficient way to organize businesses. And one of the most successful American companies of the last 50 years is a conglomerate called Berkshire Hathaway, run by the renowned investor Warren Buffett, which is the fourth-most valuable firm in the United States, behind Apple, Google and Exxon Mobil. It employs 340,000 people, roughly the population of Honolulu.

Understanding Succession at Berkshire Hathaway After Buffett (NY Times DealBook)

Today, Berkshire’s succession plan envisions investments run by several portfolio managers, likely including two hired in recent years, Todd Coombs and Ted Weschler. On the executive side, Mr. Buffett’s replacement is to come from among top managers of Berkshire’s many subsidiaries. Berkshire followers speculate on succession at the top, with several names mentioned often—especially Greg Abel of Berkshire Hathaway Energy and Ajit Jain of Berkshire Reinsurance—and another dozen capable candidates, making for a deep bench of chief executives. But a question often overlooked by outsiders is who will assume Mr. Munger’s role. [...]

A Closer Look at Berkshire Hathaway’s Insurance Operations (Insurance Journal)

Insurance operations contributed $5.2 billion to total operating income of $16.6 billion for Berkshire Hathaway in 2014—with the underwriting component of $1.7 billion (after taxes) representing the 12th straight insurance underwriting profit for the Nebraska-based conglomerate. “Our underwriting profit totaled $24 billion during the twelve-year period, including $2.7 billion earned in 2014,” wrote Berkshire’s Chair Warren Buffett in the company’s annual report released last Saturday, referring to the pretax underwriting profit for all insurance operations. “And all of this began with our 1967 purchase of National Indemnity for $8.6 million,” Buffett wrote in his annual letter [...]

The Fate of the Berkshire Mill (WSJ)

They paved a capitalist paradise and put up a parking lot. Okay, maybe “paradise” is overselling it a bit. Maybe we just wanted to reference the Joni Mitchell song. But the fact remains: The building in New Bedford, Mass. that once served as the headquarters of the old Berkshire Hathaway Inc. textile mill was torn down last year, and a parking lot was put in its place. [...] But the fact is, large parts of the original Berkshire mill complex remain. The headquarters building was taken down to build more parking for the other commercial buildings, where Mr. Letendre rents out space to roughly 20 tenants and runs his own company [...] Those remaining buildings represent the majority of the square footage that Mr. Letendre acquired when he purchased the mill from Berkshire in 2000 for $215,000.

Berkshire News Briefs - 8/26/13

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

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

MiTek Acquires Benson Industries, LLC (Building Online)

MiTek Industries, the world's leading supplier of advanced engineered structural connector systems, equipment, software and services for the building components industry announced today that it has acquired Benson Industries, LLC. Benson is the global leader in the design, pre-fabrication and installation of custom unitized curtain wall systems for high-end commercial, hotel, residential, governmental, and institutional buildings worldwide. MiTek is a subsidiary of Warren Buffett's Berkshire Hathaway Inc. "The acquisition of Benson extends MiTek's product offering into the global high-rise commercial building construction market. Benson is a terrific addition to the MiTek family," stated Tom Manenti, Chairman and CEO of MiTek.

Buffett invests in Suncor (Morning Ledger)

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

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

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

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

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

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

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

Lubrizol opens additives plant in China (Trade Only Today)

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

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

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

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

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

Buffett Tops Reese Witherspoon as Charity Auction Draw (Bloomberg)

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

Berkshire News Briefs - 8/10/13

TTI acquires assets of NPCS Autotronics (evertiq)

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

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

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

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

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

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

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

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

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

Southwest Greens Launches New Bolt™ Fiber (PRWeb)

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

Berkshire News Briefs - 7/21/13

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Special Section: Berkshire's Exposure to Detroit Bankruptcy

Buffett Insurer Wrap Firms Up Detroit Debt (Bond Buyer)

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

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

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

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

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

Berkshire News Briefs - 5/13/13

Berkshire Hathaway profits up more than 50% (Financial Times)

Berkshire Hathaway said first-quarter profits had jumped more than 50 per cent from the year-ago period because of insurance gains and overall growth from the $268bn conglomerate’s diverse mix of business. [...] The largest contributor to the rise was insurance underwriting profits of $901m, compared with $54m last year. The rise included a one-off gain of $255m related to amendments to a contract with a unit of Swiss Re. Overall revenues of $43.9bn rose from $38.1bn a year ago.

Berkshire Hathaway's 1st Quarter Press Release and 10Q filing.

The Berkshire Hathaway Q&A (Omaha World-Herald)

During more than five hours of fielding questions from shareholders, journalists and financial experts, Berkshire Hathaway Chairman and CEO Warren Buffett and Vice Chairman Charlie Munger were asked why they do what they do, what changes they would consider and what the secrets of their success are.

For more detailed notes on the Q&A session, here's an account of it from the Motley Fool BRK-A board.

Warren Buffett's Candy: His Sweet Tooth for See's Candies, Dairy Queen (YouTube / Bloomberg Video)

Bloomberg's Betty Liu profiles the sweet side of Warren Buffett's empire with See's Candies and Dairy Queen as both companies look to expand while keep commodity costs under control. She speaks on Bloomberg Television's "In The Loop."

Berkshire Hathaway Shareholder Meeting Picketed By Utah Coal Miners (Huffington Post)

Dozens of Utah coal miners are picketing outside the Berkshire Hathaway's annual meeting in downtown Omaha. The protesters are members of United Mine Workers of America who work at Deer Creek mine near Huntington, Utah. The mine is run by a subsidiary of Berkshire's MidAmerican Energy Holdings Co. The union's contract expired in January, and the union and company are disagreeing on health care coverage and safety checks.

Berkshire's B-Share Generation (The Street)

Nick Antoine traveled to Berkshire Hathaway's annual shareholder meeting with air miles and lodged in a "dirt cheap" hotel room with a ceiling that leaked water from an overflowing toilet a floor above. The 24 year-old Princeton University graduate was forced to splurge on taxis due to unseasonably cold weather at the May 4 investor gathering in Omaha, Nebraska. [...] Twenty-somethings like Antoine describe the pilgrimage to Omaha as an affirmation of independent thinking in business and investment. Buffett's values and Munger's lucidity also carry an appeal beyond their stewardship of Berkshire and its more than 80 operating subsidiaries. Those youthful shareholders are building in number, according to longtime attendees of Berkshire's meeting. The company has dramatically expanded its investor base since splitting Class B shares, first issued in 1996, by 50-to-1 in 2010.

The Cult of Buffett (Fool Video)

The Berkshire Hathaway annual meeting has reached a cult-like status. People flock from around the world to hear words of wisdom from the Oracle of Omaha. But what did Warren Buffett actually reveal about the inner workings of Berkshire?

Here's How Warren Buffett Disappointed Me (Fool)

The Berkshire Hathaway annual meeting is attended by throngs of Berkshire faithful. For some shareholders at the meeting, it's probably impossible for Berkshire CEO Warren Buffett to ever be wrong in their eyes. If we're being realistic, though, Buffett does indeed have his slip-ups. As partner-in-crime Charlie Munger put it: "Just because Warren thought something years ago doesn't make it a law of nature." With that in mind, I rounded up the team of Fools who attended this year's Berkshire meeting to ask in what ways Buffett disappointed them during the meeting.

25 Surprising Facts About Berkshire Hathaway (Fool)

Berkshire's roots go back more than 174 years to the founding of textile manufacturer Valley Falls Company, which itself merged with Berkshire Cotton Manufacturing Company in 1929. The resulting company merged with Hathaway Manufacturing to create Berkshire Hathaway in 1955.

In 2010, Warren Buffett said he considered Berkshire the "dumbest" stock he ever bought. Why? Because in 1962 he acquired his controlling stake in anger when one of its managers short-changed him in a tender offer to the tune of $0.125 per share. After he fired the manager, Buffett realized he had committed too much of his money to a "terrible" textiles business, which he fought to save for 20 years before giving up. By Buffett's estimation, that mistake cost him more $200 billion in compounded returns.

Berkshire Sells Debt to Buyers Buffett Pities (Bloomberg)

Berkshire Hathaway Inc.’s $1 billion note sale shows that while Chief Executive Officer Warren Buffett may pity investors who’ve stuck with bonds as yields fall to record lows, he’ll sell them as much debt as they want.

The company’s Berkshire Hathaway Finance Corp. sold five-and 30-year securities offering the company’s lowest coupons for those maturities ever.

New book teaches children ABCs of Warren Buffett's Berkshire Hathaway (NDTV)

Two Omaha residents, author Nancy Rips and illustrator Tom Kerr, have teamed up on "My First Berkshire ABC" to teach children about one of the world's best-known companies, and a little about the local billionaire behind it. [...] Most pages show companies that Berkshire owns or invests in. G, for example, is for "Geico," and features the car insurer's talking gecko. And W is for "Wells Fargo", and features the bank's familiar stagecoach.