From Bloomberg via Advisor Perspectives, August 26:
Warren Buffett’s Berkshire Hathaway Inc. didn’t gain fame for investing in startups. The venerated investor has a predilection for buying time-tested businesses like an oil company, a railroad or an insurer that are bets on the steady and profitable growth of the US economy.
Buffett shied away from technology stocks for years before taking the plunge with Apple Inc., which was already woven just as deeply in the fabric of the economy as Occidental Petroleum Corp., BNSF Railway Co. or Geico. It came as no surprise that Buffett eschewed the SPAC and NFT crazes. His longtime business partner, Charlie Munger, in February railed against the “wretched excess” in both venture capital and cryptocurrencies.
This is why investors should take particular note that Pilot Co., which operates Pilot and Flying J travel centers and is owned by Berkshire Hathaway, agreed on Tuesday to take a stake in Kodiak Robotics Inc., a driverless truck startup. Pilot will get one of Kodiak’s five board seats. Although the investment amount and percentage of ownership in Kodiak weren’t disclosed, Pilot is now the largest strategic investor in the startup.
This investment is a significant validation by Berkshire Hathaway, through Pilot, that driverless trucks are on the cusp of being a reality. It may be hard and even scary to imagine an 18-wheeler with no human on board humming down the highway intermingled with passenger cars. This may happen more quickly than people think....
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The introductory narrative isn't quite true. Beginning in 2008 Berkshire acquired 225 million shares of Chinese electric vehicle manufacturer BYD. Counting its various offerings it is the #1 EV manufacturer in China with Tesla #2. Worldwide the positions are reversed.
At Charlie Munger's urging BRK through its Berkshire Energy sub bought the position for $232 million. As of the last annual it was valued at $7.69 billion.
In July 2022 a trade of 225 million shares was recorded by the Hong Kong Clearing and Settlement agency. The apparent buyer, at least in nominee terms was Citibank.
