Artofgolf

Way to go, Alan!

Hello all: Byron Trott strikes again................. http://online.wsj.com/article/SB10001424052702304203604577395743107391060.html?mod=WSJ_hp_LEFTWhatsNewsCollection Art :)

Here's a link from Bloomberg about Combs. http://www.bloomberg.com/news/2010-10-25/buffett-s-berkshire-hathaway-says-todd-combs-to-join-as-investment-manager.html Art

From the UK Times: The Sage of Omaha has been shopping at Tesco again. Warren Buffett, one of the world’s most influential investors and America’s second-richest man, picked up almost 2 million more shares in the supermarket chain. He has been building his stake in Tesco gradually since first buying the shares in 2006, when Britain’s most successful retailer unveiled plans to push into America. Through the Berkshire Hathaway investment company he runs, Mr Buffett now owns more than 3 per cent of Tesco, making him the fifth-biggest shareholder. With the shares 3½p higher at 400p yesterday, his stake is worth £968 million. Perhaps the famously frugal Mr Buffett, like other investors, was relieved that no VAT was introduced on food in this week’s emergency Budget. No doubt he too cheered the likely boost to sales of beer and burgers from the progress of England’s football team to the knock-out stages of the World Cup. Supermarkets have already shifted 54 per cent more televisions in the four weeks before the tournament kicked off, according to the market researchers at Nielsen. All of which buoyed the sector generally, as Wm Morrison added 7¼p to 272½p and J Sainsbury advanced ¾p to 331½p.

But the interesting news is that BYD is considering a plant in California & has a partnership with Mercedes-Benz for an electric car in China (and hopefully beyond). http://www.marketwatch.com/story/california-group-in-china-to-lobby-for-byd-plant-2010-03-11?tool=1&dist=bigcharts&symb=1211&sid=1223409 Mercedes/BYD link: http://online.wsj.com/article/SB10001424052748703431604575095792878171872.html?ru=MKTW&mod=MKTW&mg=com-wsj Wang's our man - if he can do it...$$$$ for Charlie's great idea!

More info on the previous post (from Business Wire) Berkshire Hathaway Inc. announced that its subsidiary, McLane Company, has entered into an agreement to acquire Kahn Ventures, Inc., parent company of Empire Distributors, Inc and Empire Distributors of North Carolina, Inc. Kahn Ventures, Inc. and its subsidiaries are wholesale distributors of distilled spirits, wine and beer in the state of Georgia and North Carolina. The acquisition is subject to customary closing conditions, including the termination of the applicable waiting period under the Hart-Scott-Rodino Act. Empire will continue to be run in the same prudent and professional manner as it has been for the past 70 years, led by the current executive management team, and operating out of its existing state-of-the art facilities and in all the same markets. The only change to Empire’s business will be new access to enhanced resources, operational best practices and intellectual capital that will provide significant upside and opportunity for increased levels of success for Empire, its suppliers and the brands it distributes. Warren Buffett, Berkshire’s Chairman and Chief Executive Officer, said that this acquisition is based on a shared vision of Berkshire, McLane and Kahn of developing new opportunities to innovate, grow and lead the beverage industry. “We are excited about the opportunity to have Empire become part of our portfolio of outstanding businesses. We expect that the Empire acquisition will provide us with a solid platform for potentially acquiring other similar high quality wholesale distributors.” McLane is a $32 billion supply chain services leader, providing grocery and foodservice supply chain solutions for thousand of c-stores, mass merchants, drug stores and military locations, as well as thousands of chain restaurants throughout the United States. With 38 distribution centers and one the nation’s largest private fleets, the company optimizes the purchase, flow and sale of products from thousands of suppliers to more than 60,000 locations. Berkshire Hathaway and its subsidiaries engage in diverse business activities including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.

A recent mention of a new acquisition - Kahn Ventures! This is the only relevant item I could find: Max E. Kahn founded Empire Distributors, Inc. in Atlanta, Georgia in 1940 when he purchased Fulton Distributors. The company started with two trucks, eight brands, and 149 accounts. In 1950, he officially changed the name to Empire Distributors, Inc. Empire - The Early Years Over the years, Max continued to build upon his brand portfolio, adding the Brown Forman line in 1955 and the E&J Gallo wine and spirits portfolio in 1967. The wine and spirits industry in Georgia was also changing. In 1963, fair trade practices were abolished and wholesalers could offer deals for the first time. Empire continued to grow and moved into a new facility in the Fulton Industrial Office Park in 1972. Four years later, Max Kahn died, and his son Roger Kahn became President of Empire Distributors. Under Roger's leadership, Empire expanded market coverage into the Raleigh, Charlotte and Asheville, North Carolina regions as well as established operations in Macon and Augusta, Georgia. In 1988, Empire purchased State Wholesalers, acquiring great brands such as Dewar's scotch, Evan Williams bourbons, Jagermeister, Sebastiani and Louis Roederer wines, and many, many others. In 1994, David Kahn, grandson of Max Kahn, succeeded his uncle as President of Empire Georgia. A year later, David's brother Michael Kahn joined him as President of Empire North Carolina. During this time, Empire also started servicing the Savannah and Georgia Coast, making Empire Distributors a statewide wholesaler. In 1998, David and Michael purchased Empire Distributors, Inc. from Roger Kahn. (I don't know if this is the business - but if it is, we will now distribute spirits & wine. Sounds like a bolt-on for McLain....maybe. All the best, Art

Thanks for posting the YouTube link of Charlie's interview @ Stanford. I really enjoyed it. 8) Art

I hope this link works. http://online.wsj.com/article/SB10001424052748704007804574575481948503664.html?mod=WSJ_hps_LEFTWhatsNews All the best, Art

BYD has the best-selling compact (F3) in China . http://www.bloomberg.com/apps/news?pid=conewsstory&tkr=BRK%2FA%3AUS&sid=aQqszI7PuPmQ

Interesting, that WEB would increase the bid for Capmark. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a9vep1S78elE

I couldn't agree more. If Mr. Sokol becomes the CEO of Operations (which I feel is a high-probability) and Howard Buffett the Chairman, it's interesting to think about the interaction between the two gentlemen regarding Berkshire and future business opportunities. I hope others will add their $0.02 to this line of thought.

Sanj, Now that you stirred the pot in response #2, we have not heard much from you. Dynamic, a very well-compiled summary of all the thoughts presented & a very good interpretation of the big ideas. Well done! Can anyone provide any other compelling insights/ideas?

Wonderful video clip on Sokol @ CNBC. This fellow seems as sharp as they come. As far as leadership is concerned, he mentioned that the bench-strength at Berkshire is far better than any other company he's aware of. With Gates, Keough & Scott on the board, I don't know why shareholders anguish over succession. I think they really have the issue covered. My thanks for posting. Well done!

Looks like electric car manufacturing is going to be very competitive. http://www.bloomberg.com/apps/news?pid=conewsstory&tkr=BYDDF%3AUS&sid=a6LoIiAgZUx8

Bloomberg: BYD considering aluminum auto components. http://www.bloomberg.com/apps/news?pid=conewsstory&tkr=1211%3AHK&sid=aBAM4TS7o5wM The ball keeps rolling along....... :)

Business Wire CEO interview about the payments system & Warren's chronology of credit cards. http://pymnts.com/warren-buffett-on-what-s-next-in-the-payments-industry-2 Enjoy!

Exactly. I recently watched a YouTube video interview with Wang Fanchu, which was very interesting. He readily acknowledged BYD's limitations in trying to compete with a gasoline-powered vehicle, as current manufacturers have vastly superior technology to what they could conceivably develop. However, he felt that a battery-powered all-electric offering was the compelling choice that would be brought to the USA next year. With a 249-mile range on a single charge & the ability to refresh the battery to 50% strength with a short recharge "boost", I think that the Volt will be hard-pressed to compete with BYD. The future is interesting, indeed......... :) Art

Thanks for posting the transcription. I enjoyed it. Art

I don't think that it (investing in BYD) contradicts what they have said or done in the past. They believe that they have found a truly remarkable fellow with ideas & aspirations along with the talent & gumption to get the job done. Charlie once had an investment in General Motors (long, long ago), so it demonstrates that he is not adverse to auto manufacturers. But I feel that it's more than that. Wang Chanfu is a bootstrapper whose focus on the business is borderline maniacal. Chanfu's relentless progress impressed Munger, IMHO. Couple that with a penchant for innovative development within their circle of competence while flexibly applying internally-developed technology to a manually-assembled all-electric vehicle (e.g without robots). Charlie had also said the following: This CEO is highly ethical - when he wanted to give stock to his managers he gave them some of his stock instead of issuing new company stock. The company had a patent challenge from a Japanese company and won their case in a Japanese court! If you want to bet against this man it will be your ticket to the poor house. I could be mistaken, but I intend to hold the stock for awhile. Time will tell how it plays out....... :) Art

Charlie Munger says something like Lollapalooza effects are what happens when you have a confluence of factors that produce simply amazing results. If Charlie & Warren are right (and I think they are), BYD may be the great idea of this decade (and possibly the next).