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☆ Warren Buffett's Berkshire Hathaway faces a brutal mix of economic headwinds. It will capitalize on the chaos, 8 experts say.
▼ + stars: | 2023-04-06 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +10 min

Berkshire Hathaway faces high inflation, rising rates, and a potential recession and credit crunch. Warren Buffett's company will weather the storm and scoop up the bargains that emerge, experts say. Experts say Berkshire's ample cash reserves, strong brands, and prudent management will enable it to comfortably navigate a harsh economic environment. "Shareholders who plan on holding Berkshire for years into the future should hope for a near-term bear market in stocks. Brian Gongol, longtime Buffett follower and Berkshire shareholder:"It's better to be in Berkshire's shoes during challenging times than during a boom.

☆ A long-dormant lake has reappeared in California, bringing havoc along with it
▼ + stars: | 2023-04-04 | by ( Evan Bush | ) www.cnbc.com time to read: +7 min

David Swanson | ReutersPeople have worked for a century to make California's Tulare Basin into a food grower's paradise. The Tulare Basin is at the southern end of California's San Joaquin Valley — and in essence, it's a massive bowl. Before irrigators dug canals and rerouted water for farming in the late 1800s, Tulare Lake filled the bowl's lower reaches. Today, the irrigation system is designed to "use every single drop of water" that flows into the basin, Mount said. Tulare Lake refilled in 1997 and 1983 during very wet seasons.

☆ BNSF Cargo Train Hauling Ethanol Derails in Minnesota
▼ + stars: | 2023-03-30 | by ( Costas Paris | ) www.wsj.com time to read: 1 min

A freight train hauling ethanol, a highly flammable and toxic chemical, derailed in Minnesota early Thursday, sparking a fire and prompting residents to evacuate the area. The derailment occurred in Raymond, a town roughly 100 miles west of Minneapolis, and there were no injuries reported, according to an official at the Raymond fire department. Residents within a half-mile of the accident were asked to evacuate.

☆ Berkshire Hathaway stake in Occidental Petroleum rises to 23.6%
▼ + stars: | 2023-03-27 | by ( Jonathan Stempel | ) www.reuters.com time to read: +1 min

March 27 (Reuters) - Warren Buffett's Berkshire Hathaway Inc (BRKa.N) boosted its ownership stake in Occidental Petroleum Corp (OXY.N) to about 23.6% after buying nearly 3.7 million additional shares. It now owns about 211.7 million Occidental shares worth $12.6 billion based on the oil company's closing price of $59.65 on Monday. In August, Berkshire won U.S. Federal Energy Regulatory Commission permission to buy up to 50% of Occidental's common stock. It also owns $10 billion of Occidental preferred stock with an 8% dividend, plus warrants to buy another $5 billion of common shares at $59.62 each. Berkshire built a 22.6% stake in BNSF before paying $26.5 billion for the remainder in 2010.

☆ Buffett's Berkshire Hathaway speeds up stock buybacks
▼ + stars: | 2023-03-19 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

March 19 (Reuters) - Warren Buffett's Berkshire Hathaway Inc (BRKa.N) has stepped up its pace of stock buybacks, repurchasing more than $1.8 billion of its own stock this year. Berkshire's repurchases have also included Class B shares, which normally cost about 1/1500th as much as Class A shares. The Class A shares closed on Friday at $442,765, their low for the year, while the Class B shares closed at $293.51, near their low. Buffett owns 15.6% of Berkshire's stock. In his Feb. 25 annual letter to shareholders, Buffett defended buybacks, calling someone who views all repurchases as harmful "an economic illiterate or a silver-tongued demagogue."

☆ Warren Buffett's Berkshire Hathaway rejects call for silence on hot-button issues
▼ + stars: | 2023-03-17 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

March 17 (Reuters) - Berkshire Hathaway Inc (BRKa.N), run by billionaire Warren Buffett, on Friday urged shareholders to reject proposals that it avoid discussing hot-button social and political issues, and competing proposals that it disclose more about its climate change and diversity efforts. While Buffett's salary is low, his 15.6% Berkshire stake comprises most of his $101.6 billion net worth, which Forbes magazine said makes him the world's sixth-richest person. Berkshire's more than $60 billion of stock repurchases since the end of 2019 helps preserve Buffett's voting power. Abel would become chief executive and Buffett's son Howard Buffett would become non-executive chairman if Warren Buffett could not continue. Berkshire's businesses include Geico car insurance, the BNSF railroad, Berkshire Hathaway Energy, Dairy Queen, Fruit of the Loom and many others.

☆ Norfolk Southern shareholders sue over Ohio derailment
▼ + stars: | 2023-03-17 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

March 17 (Reuters) - Norfolk Southern Corp (NSC.N) shareholders have accused the railroad of defrauding them by prioritizing profit over safety prior to last month's derailment of a train carrying hazardous chemicals in East Palestine, Ohio. A Norfolk Southern spokesman declined to comment, saying the Atlanta-based company does not discuss pending litigation. Norfolk Southern has faced many lawsuits over the Feb. 3 derailment, including cases brought by local residents and Ohio's attorney general. Six of the seven largest U.S. freight railroads use Precision Scheduled Railroading: Norfolk Southern, Canadian National, Canadian Pacific, CSX, Kansas City Southern and Union Pacific. The case is Bucks County Employees Retirement System v Norfolk Southern Corp et al, U.S. District Court, Southern District of Ohio, No.

☆ Berkshire Hathaway to beef up risk disclosures following SEC request
▼ + stars: | 2023-03-15 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

In correspondence made public on Tuesday, the SEC's division of corporate finance asked Berkshire to "enhance" its risk management disclosures in its annual proxy filings, and Berkshire agreed to make the requested changes. It also asked Berkshire to address whether its lead independent director can override Buffett on risk matters or ask the board to consider them. The SEC made its requests in a Sept. 2, 2022 letter, and Berkshire Chief Financial Officer Marc Hamburg agreed to them six days later. Berkshire also does not hold analyst calls, and communicates to the public mainly through financial disclosures, its annual meeting and Buffett's annual shareholder letter. He has also said Berkshire's disclosures are sufficient, and many businesses are too small to merit lengthy discussion.

☆ Norfolk Southern reaches new paid sick leave deal as it contends with derailment fallout
▼ + stars: | 2023-03-15 | by ( Noah Sheidlower | ) www.cnbc.com time to read: +2 min

Norfolk Southern said Wednesday it agreed to provide up to seven paid sick days per years for members of the International Brotherhood of Boilermakers and Blacksmiths. The deal provides Norfolk Southern's mechanical railroaders with four paid sick days per year, in addition to three existing days of paid time off that can now be used as sick days. The IBBB is now the ninth of Norfolk Southern's 12 unions that have negotiated paid sick days, benefitting about 6,000 workers. The move comes after months of fighting between unions and railraods – including Norfolk Southern, Union Pacific and BNSF – over paid sick leave. The legislation, however, did not include paid sick leave.

☆ U.S. Senate leader Schumer urges federal safety probe into all major freight railroads
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +2 min

WASHINGTON, March 15 (Reuters) - U.S. Senate Majority Leader Chuck Schumer on Wednesday urged the National Transportation Safety Board to launch an investigation into safety practices of all seven major freight railroads, following the East Palestine, Ohio derailment. The companies, in addition to Norfolk Southern, are BNSF Railway, CSX, Union Pacific, Canadian National, Canadian Pacific, and Kansas City Southern, Schumer said in a letter to the agency. On Feb. 3, a Norfolk Southern train carrying hazardous materials derailed in East Palestine, Ohio, resulting in the release of over 1 million gallons of harmful pollutants. "Norfolk Southern isn't the only rail company that has spent years lobbying to loosen regulations, neglect safety upgrades and lay off workers," Schumer said. Last week, Norfolk Southern CEO Alan Shaw testified to a Senate hearing and is set to appear at another March 22 rail safety Senate hearing.

☆ Schumer pushes National Transportation Safety Board to expand rail safety probe beyond Norfolk Southern
▼ + stars: | 2023-03-15 | by ( ) www.cnbc.com time to read: +3 min

Senate Majority Leader Chuck Schumer, D-N.Y., on Wednesday urged the National Transportation Safety Board to broaden its rail safety investigation beyond Norfolk Southern to other large rail companies after last month's derailment in East Palestine, Ohio. Hours before Norfolk Southern CEO Alan Shaw appeared at a congressional hearing last week about the Ohio derailment, another of the company's trains derailed in Calhoun County, Alabama. It was the third derailment involving Norfolk Southern since last month. They can tell us how many fatalities there were — 2,768 — but not why or if company policies could have prevented them." The Ohio Attorney General's office on Tuesday sued Norfolk Southern in federal court, alleging it was negligent for causing the derailment.

☆ Berkshire Hathaway resumes Occidental purchases, stake reaches 22.2%
▼ + stars: | 2023-03-08 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

Berkshire paid about $355 million for 5.8 million Occidental shares between March 3 and March 7, according to the filing. Buffett's company now owns about 200.2 million Occidental shares worth $12.2 billion, based on Tuesday's closing price of $60.85. Berkshire also owns $10 billion of Occidental preferred stock that throws off $800 million of annual dividends, plus warrants to buy another $5 billion of common stock. Occidental ended January with about 900 million shares outstanding. Berkshire ended 2022 with $128.6 billion of cash and equivalents.

☆ Norfolk Southern and Other Freight Railroads Agree to Join Federal Close-Call Reporting System
▼ + stars: | 2023-03-03 | by ( Esther Fung | ) www.wsj.com time to read: 1 min

The East Palestine, Ohio, train derailment has led to more scrutiny of railroad safety practices. Norfolk Southern Corp. and its rivals said Thursday they have agreed to join a federal system that lets employees confidentially report close calls, a program the biggest freight railroads had refused to join for years. Transportation Secretary Pete Buttigieg on Monday had asked the chief executives of the seven so-called Class 1 railroads— Union Pacific Corp., Norfolk Southern, BNSF Railway, CSX Corp., Canadian Pacific Railway Ltd., Canadian National Railway Co. and Kansas City Southern—to join the Federal Railroad Administration’s close-call reporting system.

☆ Warren Buffett, in annual letter, stays upbeat and preaches patience
▼ + stars: | 2023-02-25 | by ( Jonathan Stempel | ) www.reuters.com time to read: +5 min

In his annual letter to Berkshire shareholders, the 92-year-old Buffett urged investors to focus on the big picture over the long term, rather than higher inflation and other factors that in 2022 dampened stock prices, though not Berkshire's. And I doubt very much that any reader of this letter will have a different experience in the future." "Buffett is very humble in assessing his own investment prowess, and unnecessarily so," said Thomas Russo, a partner at Gardner Russo & Quinn and longtime Berkshire investors. It also became a big seller of stocks including Taiwanese semiconductor maker TSMC (2330.TW) late in the year, while stepping up repurchases of its own stock. Buffett also urged investors not to dwell on near-term market conditions - he said Berkshire offers "modest protection from runaway inflation, but this attribute is far from perfect."

☆ Buffett's Berkshire posts record annual operating profit
▼ + stars: | 2023-02-25 | by ( Jonathan Stempel | ) www.reuters.com time to read: +3 min

Feb 25 (Reuters) - Warren Buffett's Berkshire Hathaway Inc (BRKa.N) on Saturday reported its highest-ever annual operating profit, even as foreign currency losses and lower gains from investments caused fourth-quarter profit to fall. Quarterly operating profit fell 8% to $6.71 billion, or $4,596 per Class A share, from $7.29 billion. Profit also fell at the BNSF railroad, while Berkshire generated more profit from its energy businesses and more income from its insurance investments as interest rates rose. For all of 2022, Berkshire lost $22.82 billion, largely because of losses in its $308.8 billion common stock portfolio. "We're delighted to see the growth in float," said Thomas Russo, a partner at Gardner Russo & Quinn who helps invest $8 billion, about 17% of which is in Berkshire stock.

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☆ Buffett's Berkshire has record annual operating profit despite inflation, rate pressures
▼ + stars: | 2023-02-25 | by ( Jonathan Stempel | ) www.reuters.com time to read: +4 min

Feb 25 (Reuters) - Warren Buffett's Berkshire Hathaway Inc (BRKa.N) on Saturday reported its highest-ever annual operating profit, even as foreign currency losses and rising interest rates contributed to lower earnings in the fourth quarter. Buffett called 2022 a "good year" for Berkshire in his annual shareholder letter, after the conglomerate's dozens of businesses generated $30.8 billion of profit despite rising inflation and supply chain disruptions, including from the war in Ukraine. Berkshire also bulked up its cash hoard, ending the year with $128.6 billion after selling about $16.3 billion of stocks in the fourth quarter. Quarterly operating profit fell 8% to $6.71 billion, or $4,596 per Class A share, from $7.29 billion. Berkshire projected that Geico, which shed 7% of its 41,000-person workforce last year, will generate an underwriting profit in 2023.

☆ Buttigieg urges U.S. railroads to boost safety, not oppose reforms
▼ + stars: | 2023-02-19 | by ( David Shepardson | ) www.reuters.com time to read: +4 min

[1/7] Drone footage shows the freight train derailment in East Palestine, Ohio, U.S., February 6, 2023 in this screengrab obtained from a handout video released by the NTSB. Buttigieg said he would soon outline specific safety improvements railroads should take immediately. He harshly criticized them for lobbying against steps "intended to improve rail safety and to help keep Americans safe." Buttigieg said he also planned to outline "prioritized actions planned" by the U.S. Department of Transportation on rail safety. In response to the derailment, U.S. Senate Commerce Committee Chair Maria Cantwell Friday opened an inquiry into railroad hazardous materials safety practices.

☆ U.S. senator asks railroad CEOs to answer questions on hazardous shipments
▼ + stars: | 2023-02-18 | by ( ) www.reuters.com time to read: 1 min

WASHINGTON, Feb 17 (Reuters) - U.S. Senate Commerce Committee chair Maria Cantwell said on Friday she was opening an inquiry into railroad hazardous materials safety practices after a Feb. 3 Ohio derailment of a train operated by Norfolk Southern (NSC.N) raised new concerns. Cantwell wrote the chief executives of Norfolk Southern, Burlington Northern Santa Fe (BNSF), Canadian National (CNR.TO), Canadian Pacific (CP.TO), CSX (CSX.O), Kansas City Southern, and Union Pacific (UNP.N) seeking information to help determine how to improve safety. "Every railroad must reexamine its hazardous materials safety practices to better protect its employees, the environment, and American families and reaffirm safety as a top priority," Cantwell wrote. Reporting by David Shepardson; Editing by Sandra MalerOur Standards: The Thomson Reuters Trust Principles.

The derailment of the train, operated by Norfolk Southern (NSC.N), forced thousands of residents to evacuate while railroad crews drained and burned off chemicals. “We have mobilized a robust, multi-agency effort to support the people of East Palestine, Ohio," White House spokesperson Karine Jean-Pierre said at a briefing. [1/3] A view of a caution tape as members of the U.S. Environmental Protection Agency (EPA) (not pictured) inspect the site of a train derailment of hazardous material in East Palestine, Ohio, U.S., February 16, 2023. DeWine called on Congress to review railroad safety regulations, lamenting states have little power to demand information about what types of hazardous goods are rolling through their borders. Transportation Secretary Pete Buttigieg said Thursday more needs to be done to address rail safety in the face of hundreds of annual train derailments.

The Illinois Biometric Information Privacy Act (BIPA) imposes penalties of $1,000 per violation and $5,000 for reckless or intentional violations. The Chamber in a brief filed last year said a ruling against White Castle would spur litigation that could be financially ruinous for some companies. A Chicago-based U.S. appeals court had asked the Illinois Supreme Court to decide the issue. Ohio-based White Castle in a statement provided by a spokesperson said it was disappointed with the ruling and was considering its options. The case is Cothron v. White Castle System Inc, Illinois Supreme Court, No.

☆ Warren Buffett's Berkshire Hathaway slashed 3 big stock bets last quarter - and topped up its huge Apple stake
▼ + stars: | 2023-02-14 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Warren Buffett's Berkshire Hathaway made striking changes to its stock portfolio last quarter. The famed investor's company cut its stake in Taiwan Semiconductor — which it only established in the third quarter of last year — by 86% to 8.3 million shares. Buffett's conglomerate also pared its US Bancorp stake by 91% to fewer than 7 million shares, worth just under $300 million at the end of December. Similarly, it sliced its BNY Mellon position by about 60% to 25 million shares, worth $1.1 billion at year end. Berkshire didn't add any new names to its US stock portfolio last quarter, nor did it eliminate any holdings.

☆ 10 stocks that fit Warren Buffett's takeover criteria
▼ + stars: | 2023-02-12 | by ( Yun Li | ) www.cnbc.com time to read: +3 min

Warren Buffett is fresh off an active year full of deal-making and stock purchases. Berkshire agreed to buy insurance company Alleghany for $11.6 billion, Buffett's biggest deal since 2016. Buffett favors companies with historically low stock prices when compared with earnings, and rock solid cash flows. Until 2017, Buffett had always revealed his acquisition criteria every year in his annual letters to Berkshire shareholders. Monster Beverage checks all the boxes in Buffett's acquisition criteria.

☆ Two rail unions reach deal with CSX railroad for paid sick time
▼ + stars: | 2023-02-08 | by ( Vanessa Yurkevich | ) edition.cnn.com time to read: +3 min

CNN —CSX Transportation announced Tuesday that it had reached a deal with two railroad unions regarding paid sick leave. It also allows members to use up to three personal leave days for sick leave, the two unions said. Eight unions voted to accept the tentative agreement negotiated by the Biden administration with no paid sick leave, while four voted it down. The unions asked for ten paid sick days initially — whittling down their ask to four. The three other major freight railroads — Union Pacific, BNSF and Norfolk Southern — do not currently have paid sick leave in place.

☆ Berkshire stock is trading at 20% discount, a level where Buffett typically ramps up buyback, UBS says
▼ + stars: | 2023-02-07 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

Shares of Warren Buffett's Berkshire Hathaway are now trading at a significant discount to the conglomerate's intrinsic value, which may prompt the "Oracle of Omaha" to buy back more of his stock, according to UBS. "BRK's shares are trading at more than a 20% discount to its intrinsic value based on the methodology outlined in BRK's 2018 Annual Letter to Shareholders," UBS' Berkshire analyst Brian Meredith said in a note. The conglomerate's stock held up well in 2022 with a 4% gain as investors favored more stable pockets of the market. The fifth grove of Berkshire is its insurance operations, which are not included in the calculation. Meanwhile, Berkshire suffered a $63.9 billion loss on its investments last year through September amid the broader market selloff.

☆ Some flight attendants have their attendance tracked by a game-like 'point system' that they say values efficiency over health
▼ + stars: | 2023-01-05 | by ( Hannah Towey | Juliana Kaplan | ) www.businessinsider.com time to read: +8 min

During a year marked by labor strikes and protests, flight attendants and rail workers told Insider that these points-based attendance policies create an industry culture that values efficiency over employee health and well-being. But workers say the point systems form the foundation of punitive attendance policies that force them to work while sick or dangerously fatigued. At American Airlines, flight attendants have pushed back on the system for years. "I don't think you'd speak to one flight attendant who thinks the point system is necessarily fair, or balanced," Anthony Cataldo, an American Airlines flight attendant of 33 years, told Insider. So we're on call 24 hours a day, seven days a week, 365 days a year," a BNSF railway conductor of over a decade told Insider.

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