Berkshire Hathaway Buys German Company Wilhelm Schulz

Last month, Berkshire Hathaway formally announced that it had made a new acquisition in Germany, the second such acquisition in Germany in two years. The company, Wilhelm Schultz, is primarily a maker of high-performance pipes for the oil and gas industry, although it also produces products for the aerospace industry and other industries.

The acquisition was reportedly recommended by Mark Donegan, CEO of Precision Castparts Corporation, one of Berkshire Hathaway’s most recent acquisitions. The purchase itself was made by Berkshire Hathaway itself, not Precision Castparts, although it’s fairly certain that Donegan had a part in evaluating the company and possibly in the actual deal itself.

According to the company website, Wilhelm Schultz manufactures parts in three countries, including Germany, Brazil, and the United States. The American plants are reportedly located in Tunica, MS and Houston, TX.

Historically, Berkshire Hathaway has focused primarily on American companies and owns around 60 different companies (view the full list here). However, in 2008, the holdings company began dipping its toes in the European market and looking for an acquisition.

Berkshire Hathaway’s first purchase in Europe was in 2015 when the company snapped up the German company Detlev Louis Motorradvertriebs, a motorcycle equipment retailer.

While Wilhelm Schultz marks Berkshire’s second foray into Germany, the company purchased an Italian company, Zephir SpA, in 2016. The exact details and price of the deal were not disclosed.

 

 

Why Did Warren Buffett Learn the Ukulele?

Warren Buffett, billionaire philanthropist investor, is one of the richest men in the world. People have paid literally thousands of dollars for lunch with him, and he speaks frequently at colleges and businesses across the world. He’s even been dubbed the “Oracle of Omaha” due to his investing genius. He also plays the ukulele.

It might seem like an odd hobby for someone who has basically everything, but it’s not as odd as you think. And, as it turns out, Buffett has been playing the ukulele for far longer than he’s been investing in the stock market. However, his humble beginnings with this tiny four-stringed instrument may surprise you. Continue reading ‘Why Did Warren Buffett Learn the Ukulele?’ »

5 Things People Get Wrong About Warren Buffett

Last week, HBO’s documentary “Becoming Warren Buffett” aired, providing viewers with a rare look at the life of the world’s greatest investor, the Oracle of Omaha. While his business decisions and investing advice are easy to find, information about his personal life tends to be a little bit harder to come by, and accounts are varied and often incorrect.

On the documentary, his daughter Susan Buffett spoke about her father at length, both in the documentary and to Business Insider, discussing some of the things that people tend to get wrong about her father, including his stance on donations, charity, and his relationship with Astrid Menks. Here are some of the clarifications, to set facts straight: Continue reading ‘5 Things People Get Wrong About Warren Buffett’ »

Top 10 Most Famous Warren Buffett Quotes

Warren Buffett, the Oracle of Omaha, is one of the most quotable people in the investing world. It seems like you simply can’t turn around without hearing someone spout something that he once said in an interview, in a meeting, or in one of his annual letters. While it might be easy to say that Buffett is overquoted or overvalued, there is some true genius in his quotes.

So, just on the off chance that you somehow missed them, here are 10 of Warren Buffett’s most famous quotes. Continue reading ‘Top 10 Most Famous Warren Buffett Quotes’ »

Buffett’s Shareholder Letter Highlights: 1999

Since Warren Buffett took over the management of Berkshire Hathaway in 1965, he has written an Annual Shareholder Letter outlining the progress of the company, setting goals, and discussing the culture and methodology of Berkshire Hathaway. And, while a good portion of each letter is devoted to a rundown of numbers for Berkshire Hathaway, scattered throughout each article is quite a bit of Buffett’s down-to-earth mentality and some fantastic financial advice.

In this series, I’m going to go through and highlight some of the best letters from 1965 through the present. There won’t really be that much of an order, and we won’t do every year, but inside you’ll find not only an interesting insight into Berkshire Hathaway, but also history and the mind of the Oracle of Omaha himself.

Today, we’re going to take a look at the Shareholder Letter from 1999. This letter has been lauded as one of the top five best letters written by Buffett. But first we’ll get some background on what was going on in Berkshire Hathaway that year. Continue reading ‘Buffett’s Shareholder Letter Highlights: 1999’ »

Warren Buffett Thinks You Should Ask for a Raise

Warren Buffett is practically a household name, and the Oracle is famous, mainly, for one thing— his wealth. While there were famous investing techniques that helped him get where he is today along with his conglomerate Berkshire Hathaway, chances are the octogenarian wouldn’t have quite as much of a following if he wasn’t a billionaire, currently valued at $71.2 billion.  Continue reading ‘Warren Buffett Thinks You Should Ask for a Raise’ »

Berkshire Stocks are Third Most Expensive in the World

Warren Buffett heads what is often regarded as one of the largest and wealthiest conglomerate companies in the world. Berkshire Hathaway does come in as the most expensive stock to buy in America, with Class A shares currently valued at $240,280 and Class B shares never exceeding 1/1500 of Class A’s value.

Berkshire Hathaway owns a variety of profitable businesses— read here why their reinsurance division remains profitable— including Helzberg Diamonds, American Express, Fruit of the Loom, and Dairy Queen. In total, Berkshire Hathaway owns 10 companies that would be included on the Fortune 500 list if they were not subsidiaries of Berkshire.  Continue reading ‘Berkshire Stocks are Third Most Expensive in the World’ »

3 Traits Buffett Looks For When Hiring

Warren Buffett is one of the most successful men in the investing world right now. In fact, he is the top investor in the world. And, while you can learn much from reading the Berkshire Hathaway annual shareholder letters, from watching interviews with the Oracle of Omaha, going through his biography, and reading this blog, one of the best ways to learn is from the Oracle of Omaha himself. In fact, that’s exactly what Buffett himself did—he got a job with his idol and mentor, Benjamin Graham.

However, if your life goal is to be hired by Warren Buffett, then in addition to having the basic skills needed, there are three main traits that Buffett always looks for in those he hires: Continue reading ‘3 Traits Buffett Looks For When Hiring’ »

Berkshire Hathaway Acquires Houlihan Lawrence

Last week, HomeServices of America,one of Berkshire Hathaway’s many real estate subsidiaries, announced that it had purchased Houlihan Lawrence, a New York residential real estate firm. The financial terms of the deal were not disclosed. This purchase will mark the second entrance into the New York real estate market for HomeServices of America.

Houlihan Lawrence was established in 1888 and services Westchester, Putnam, Dutchess, Orange and Ulster counties in New York as well as Farfield county in Connecticut. It is based in Rye Brook, New York, and its sales volumes totaled around $6.7 billion in 2016. The chairman of the company, Nancy Seaman, will be stepping down. Continue reading ‘Berkshire Hathaway Acquires Houlihan Lawrence’ »

Why Doesn’t Warren Buffett Have a Sports Team?

Warren Buffett, the most famous investor of our time, is currently valued at $73.7 billion, making him the second wealthiest man in the world. It’s hard to imagine what one would do after accumulating all that wealth, and what they would buy, but it’s safe to say there’s some buying trends— even amongst the millionaires and billionaires.

One of those buying trends would definitely be sports teams. Sports teams, generally, are extremely expensive which means the only people who they’re available to are the millionaires and billionaires; in some cases a few team up to make a purchase, as is the case with Kansas City’s soccer team Sporting KC. In fact, Buffett says sports teams are kind of like art: they go up in value pretty much because there are a lot of rich people that want to own them.  Continue reading ‘Why Doesn’t Warren Buffett Have a Sports Team?’ »