Member Briefing February 25, 2025
Berkshire Hathaway Earnings: Takeaways From Warren Buffett's Letter To Shareholders
In his annual letter to shareholders released over the weekend, Berkshire Hathaway CEO Warren Buffett reported the legendary investment firm's cash holdings to have nearly doubled to $334.2 billion; the "Oracle of Omaha" also noted that "53% of our [Berkshire's] 189 operating businesses reported a decline in earnings." Berkshire Hathaway shares jumped 5% Monday, on pace for their best day since November. Here are five key areas takeawasy from the letter.
1. Warren Buffett's company has a record cash pile. Holdings of cash and Treasury bills totaled more than $321 billion at the end of last year.
2. But Buffett's investment stance hasn't changed. “Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses, whether controlled or only partially owned,” he told shareholders.
3. Berkshire's preferred profit measure rose. Operating earnings, which exclude some investment results, increased to $47.4 billion.
4. Japan is a growing focus, accounting for $23.5 billion of investment. Berkshire has significant stakes in five big Japanese trading houses, and Buffett said those holdings will likely "increase somewhat" over time.
5. Buffett said little about the overall market, sticking to a few thoughts about the hunt for good investments.
2025: Where 5 Major Auto Manufacturing Projects Stand
The automotive industry’s road to electrification has led to some of the largest construction projects in recent memory. In 2022, consumer preferences coupled with a regulatory push for a greener future saw many automakers pour billions of dollars into building factories dedicated to manufacturing electric vehicles. But slowing EV demand and a second Trump administration, pose the question: Are these projects on track, or have automakers been forced to pivot?
“At the end of the day, these plants need to be profitable and if incentives for consumers go away, that could slow the pace of EV adoption and impact production,” Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive said. As automakers brace for federal policy shifts in the year ahead that could further impact operations, some have proactively adjusted to give themselves the flexibility needed to respond to an uncertain market. Here’s where five major auto manufacturing projects stand heading into 2025.
Apple Earmarks $500 Billion for U.S. Expansion
Apple said it plans to spend more than $500 billion over the next four years to expand its manufacturing footprint in the U.S. The iPhone maker pledged Monday to hire around 20,000 people during that time span and build a new factory in Houston that will create thousands of jobs. The new 250,000-square-foot factory is slated to open in 2026 and produce servers supporting Apple Intelligence, the company’s generative-AI system.
Most of the incoming wave of workers will be focused on research and development, silicon engineering, software development, and AI and machine learning, Apple said. The company said it also plans to create an academy in Michigan to train the next wave of U.S. manufacturers, and to double its U.S. Advanced Manufacturing Fund, which was formed in 2017 to invest in U.S. companies that do advanced manufacturing, to $10 billion. While it is still largely dependent on East Asia, and China in particular, the Cupertino, Calif.-based Apple has been using more suppliers that manufacture in the U.S. since the pandemic.
Global Headlines
Middle East
- Israel, U.S. Aim to Extend Cease-Fire While Delaying Start of Talks to End War – WSJ
- West Bank Palestinians fear Gaza-style clearance as Israel squeezes Jenin camp - Reuters
- Iran Reacts to Israel's Hezbollah Funeral Flyover - Newsweek
- EU And Israel Resume Dialogue With Focus On Gaza's Future - Reuters
- Israel Indefinitely Delays Palestinian Prisoner Release As Hostages Freed -BBC
- Donald Trump's 'Zero' Push Spurs More US Sanctions on Iranian Oil Trade- Newsweek
- Interactive Map- Israel’s Operation In Gaza – Institute For The Study Of War
- Map – Tracking Hamas’ Attack On Israel – Live Universal Awareness Map
Ukraine
- Russia Making Billions From Fossil Fuels Despite Sanctions – Newsweek
- Russia's 3-Year-War On Ukraine - VOA
- Zelenskyy Refuses To Sign Trump’s Rare Earths Deal — But Official Says Pact Is Close - Politico
- Ukraine’s Zelensky Wants Better Terms on Minerals Deal Demanded by Trump - WSJ
- Trump: Putin Would Permit EU Peacekeepers in Ukraine as Part of Peace Deal – Newsweek
- Competing Resolutions On Ukraine Presented At UN General Assembly - AP
- Putin Holds Meeting On Rare Earth Metals, Aims To Significantly Boost Output – Yahoo Finance
- Europeans Win In UN Clash With US Over Rival Ukraine Resolutions - Reuters
- EU Hits Russia With New Sanctions Amid Trump Uncertainty - Politico
- Interactive Map: Assessed Control Of Terrain In Ukraine – Institute For The Study Of War
- Map – Tracking Russia’s Invasion Of Ukraine – Live Universal Awareness Map
Other Headlines
- German Vote Boosts Europe’s Centrists, as Merz Seeks ‘Independence From U.S.’ – WSJ
- Merz Confirms Push For Centrist Coalition After German Election Win - Politico
- Pope Resting On 10th Day Of Hospitalization - VOA
- German Election Results Tilt EU Back Toward Nuclear Energy - Politico
- Why the Sinaloa Cartel May Never Be the Same Again - WSJ
- Macron Meets Trump At White House For Talks On Ukraine - BBC
- Putin Calls China's Xi on Anniversary of Ukraine War - Newsweek
- Haiti Multinational Force Denies Losing Members In Gunfight - VOA
- Argentina’s $4.6 Billion Crypto Scandal; Largest-Ever Crypto Theft – Forbes
Policy and Politics
Here’s Why A Government Shutdown Appears Increasingly Likely—As Trump And Musk’s Cuts Anger Dems
Congressional negotiations to avert a government shutdown in less than three weeks appear to have reached an impasse as Democrats are suggesting they could withhold their votes in protest of President Donald Trump’s and Elon Musk’s broad spending cuts. The existing spending plan expires March 14, and the absence of a new plan to continue funding government operations would trigger a shutdown. During the previous session of Congress, Republicans relied on Democratic support to pass a series of continuing resolutions, or short term deals that would keep the existing spending plan in place to give Congress time to work out a new deal.
Democrats, angered by the Trump administration’s slashing of government spending and mass layoffs, are showing heightened resistance to the shutdown negotiations, with House Minority Leader Rep. Hakeem Jeffries, D-N.Y., telling his members in a letter earlier this month that the “illegal” spending cuts must be “choked off in the upcoming government funding bill.” Some Democrats, including Senate Minority Leader Chuck Schumer, D-N.Y., have said they are open to negotiations, calling the idea that Democrats are in favor of a shutdown “laughable” in a floor speech earlier this month, noting “President Trump and Republicans are already shutting down large parts of the government.”
GOP Scrambles To Win Over Moderates On Budget Resolution
Senate passage of a budget resolution designed to execute large parts of President Trump’s policy agenda throws the ball back to the House, where GOP leaders are hoping to move swiftly on legislation encompassing an even broader swath of Trump’s first-year wishlist. The GOP budget bill is poised to hit the House floor this week, but passage is no slam dunk. House Republicans are clinging to a historically tiny majority, which leaves virtually no room for GOP defections as long as Democrats are united in opposition, as expected. And already, a handful of moderate Republicans are airing concerns about steep cuts to safety net programs like food stamps and Medicaid that could tank the bill.
Those cuts are a crucial piece of the GOP’s budget plan, designed to help offset the multitrillion-dollar cost of extending Trump’s 2017 tax cuts. A failure of the budget plan on the House floor would strike a hard blow to the GOP’s efforts to enact Trump’s ambitious legislative agenda in the first year of his second term, just months after voters put Republicans in charge of all levers of power in Washington. In that instance, GOP leaders could return to the drawing board in an attempt to win over the moderates by reducing the size and scope of the spending cuts. But that move would likely erode support from conservative budget hawks hoping to shrink the government and rein in deficits.
Lt. Gov. Antonio Delgado Won’t Run Again With Gov. Kathy Hochul
Lt. Gov. Antonio Delgado announced Monday that he won’t run alongside Hochul in next year’s election, marking a clean break with a governor who first appointed him to the state’s number-two role in 2022. Delgado’s relationship with Hochul had steadily and publicly deteriorated over the past year, with Delgado going as far as openly flirting with a gubernatorial run of his own. The lieutenant governor hinted at his future ambitions in his announcement, saying he remains “determined to be your voice in state government now and in the future.”
A Hochul spokesperson said the governor had already been seeking out a different running mate for 2026 and would be taking steps to “reallocate” Delgado’s governmental responsibilities. “Today, Antonio Delgado finally said out loud what has been obvious for quite some time: he is simply not interested in doing the job of the Lieutenant Governor of the State of New York,” said Hochul's Communications Director Anthony Hogrebe, who added that Hochul “wishes [Delgado] the best in his future endeavors.”
Trump’s First 100 Days
- Musk: Federal Workers Who Haven’t Returned To Office Will Be Placed On Leave This Week. – The Hill
- Elon Musk Vs. Federal Agencies: Trump Calls Email Plan ‘Genius’ Even As Leaders—Including Patel, Hegseth—Push Back - Forbes
- Jim Jones, FDA’s Top Food Official, Resigns After Trump Fires 89 Agency Employees – Food Processing
- Lawsuit Challenges Musk ‘Resignation’ Threat To Federal Workers - CNBC
- Judge Blocks DOE, OPM From Disclosing Troves Of Sensitive Personal Data To DOGE – The Hill
- U.S. to Hit Chinese Ships With Hefty Port Fees WSJ
- Trump Picks Dan Bongino as No.2 at FBI - NPR
- Social Security Announces Changes After Trump Directives - Newsweek
- Trump Mulls Bringing US Postal Service Into Commerce Department – Supply Chain Dive
- Columbia Hires Mike Pompeo, Trump’s Former Secretary of State, to Teach Diplomacy – Columbia Daily Spectator
- Trump Aid Freeze Disrupts Anti-Narcotics Program At Mexican Ports - Reuters
- The Trump Tracker: Keep Tabs On The Latest Announcements And Executive Orders - WSJ
- Tracking Trump’s Cabinet Confirmations - NYT
Health and Wellness
Nutritionists Offer These 6 Ways To Get Back To A Healthy Diet
Your diet fuels your health and lifestyle, but it’s normal for even the most conscious eaters to go off the rails sometimes. Maybe you’ve leaned more into ultra-processed foods lately, or find that dessert has become a daily requirement when it used to be an occasional thing. While it’s easy to be hard on yourself when that happens, many people go through this—even nutritionists. “We all know that feeling when we’re in a good balance and when things are not quite right,” says Jessica Cording, RD, a nutritionist and the author of The Little Book of Game-Changers.
Nutritionists make a living out of helping people create healthy habits, and they also know the tools needed to get eating back on track. Here’s what six dietitians do when they want to reset their eating habits, plus why they can help.
Industry News
PepsiCo To Shutter Liberty PopCorners Factory — Laying Off Nearly 300
PepsiCo has announced that it will shut down a Hudson Valley manufacturing facility that makes the PopCorners snack — resulting in nearly 300 people losing their jobs. The decision to close the Liberty, NY, manufacturing facility marks the end of an era for a plant that has been a significant employer in the region for almost three decades. A PepsiCo spokesperson told the Albany Times Union that the facility will shut down due to what the company described as challenges in sustaining long-term operations amid shifts in the snack industry.
According to a Worker Adjustment and Retraining Notification (WARN) filed with the state Department of Labor, the layoffs will begin on May 21 and take place over a two-week period. In a statement to the press, PepsiCo acknowledged the plant’s contributions but cited broader industry trends and slowing growth in the product line as reasons for the closure. “This plant has played a vital role in producing our beloved PopCorners brand, but the pace of growth for this product line paired with broader industry pace of growth has made it difficult to sustain the site’s long-term viability,” PepsiCo said in a statement.
PwC Study Highlights General Aviation's Economic Impact
A new study underscores the immense economic impact of general aviation in the United States, revealing that the industry supports 1.3 million jobs, contributes $178.1 billion to the nation’s Gross Domestic Product (GDP), and generates $339.2 billion in total economic output. Despite economic headwinds, general aviation has demonstrated strong post-pandemic growth, adding more than 150,000 jobs and $92 billion in annual economic impact since the last study in 2020, according to the new report by PwC US Tax and sponsored by eight general aviation advocacy associations.
“This growth takes place at a time when the importance of the societal benefits that general aviation brings to humankind around the globe cannot be overstated,” noted Pete Bunce, president of the General Aviation Manufacturers Association (GAMA). “From aerial firefighting, medical airlift, natural disaster response, law enforcement, agriculture protection, through drone vaccine delivery, general aviation is saving lives while our business aviation segment creates the corporate connectivity to allow companies the competitive advantage needed to create more jobs and promote economic growth.”
Fire At SPS Technologies Pennsylvania Manufacturing Facility That Burned For 5 Days Straight Has Been Extinguished
An industrial fire, which began Monday, February 17, was finally extinguished on Saturday, February 22. The fire began at SPS Technologies’ fastener manufacturing facility in Abington, Pennsylvania. In a statement from the city, over 100 various agencies assisted in the effort, which thankfully resulted in zero fatalities. Abington Police and multiple fire companies were called to 301 Highland Ave Jenkintown at 9:35 p.m. where they discovered an active fire breaching through the roof of the building. Witnesses told officials that an explosion occurred inside the plant, causing the fire.
The building was immediately evacuated, and all employees that were on site were accounted for with no reported injuries. The fire was so severe that a total of 68 fire companies responded to the fire and worked systematically to contain it and ensure public safety. The company supplies a wide range of fasteners primarily for the aerospace industry.
Sikorsky to Start Next Round of Heavy Lift Marine Corp. Copters
The U.S. Dept. of Defense issued a $232.4-million modification to an existing contract with Sikorsky Aircraft Corp., covering acquisition of “long-lead time materials” in the lead-up to full-rate production on the next round (Lot 10) of CH-53K aircraft for the U.S. Marine Corps. The new award exercises an option established in the initial 2023 contract and extends its full value by 25% to $605.4 million. Each production lot is planned to include 21 helicopters, and the acquisition period is expected to be completed in March 2026.
The CH-53K “King Stallion” is a heavy-lift transport helicopter, the largest and heaviest helicopter in service for U.S. defense forces. Each aircraft is powered by three gas turbofan engines and has a range of 530 miles, with a payload of 27,000 lbs. The USMC is scheduled to receive a total of 200 CH-53Ks in a fleet-replacement program over multiple years. In 2023, the U.S. Navy granted a $2.77-billion award to Sikorsky for 35 King Stallions (Lots 9 and 10), with deliveries starting in 2026. Sikorsky, a subsidiary of Lockheed Martin, will produce the helicopters in Stratford, Conn.
Read more at American Machinist
Foxconn Goes After Nissan EV Business By Proposing Honda Tie-Up
Taiwan's Foxconn has proposed forming a partnership with Japan's Honda Motor, aiming to create a tie-up framework that also includes rival carmakers Nissan Motor (7201.T), opens new tab and Mitsubishi Motors the Nikkei newspaper reported on Friday.
The chairman of Foxconn, the world's largest contract electronics manufacturer, earlier this month said it would consider taking a stake in Nissan for cooperation, after the merger talks between Nissan and Honda collapsed.
Plastics Processors, Recyclers Look For Imported Scrap Alternatives Amid Tariff Threats
U.S. plastics processors and recyclers are scrambling to find domestic suppliers of plastic scrap as they face the prospect of significant tariffs on goods imported from Canada and Mexico, according to a recycled resin market analyst. “Although [the tariffs] are delayed, they are not yet out of sight, and there are a lot of potential implications for plastics recyclers as well as plastics processors and converters,” said Emily Friedman, recycled plastics senior editor for ICIS, a leading chemicals and energy intelligence provider.
About a decade ago, the United States was a large exporter of plastic waste, sending much of it to China. However, global treaties and legislation curtailed that practice and increased local processing of plastic waste. The tariffs, should they go into effect, could be one step “in cementing the idea that we need to process our waste locally,” Friedman said. That could prompt plastics recyclers and processors to consider using plastics that up to now have been ignored because they have been considered less than ideal for processing. For example, clear and neutral plastics are preferred to colored plastics because they are easier to color or treat to meet a user’s design specifications. But recycling colored plastics, despite the challenges, could become a more attractive option.
Read more at Plastics Machinery & Manufacturing
Nestlé Largely ‘Immune’ To Tariff Impact, CEO Says
Nestlé is largely “immune” from the impact of tariffs, the company’s chief executive said, with the world’s largest food producer benefiting from its more localized manufacturing footprint. Laurent Freixe told reporters while the Lean Cuisine maker is closely watching global trade and tariffs, it benefits from the fact that most of the products sold are manufactured in their respective markets. In the U.S., for example, Nestlé produces about 90% of what it sells domestically. Food and beverage makers are closely following the impact that tariffs from the Trump administration could have on their businesses. Coca-Cola CEO James Quincey said the beverage maker could switch to more plastic bottles from aluminum cans if input costs for the commodity become too expensive.
For Nestlé, the Switzerland-based company has “lots of mechanics to mitigate any tariff that we do see come through, be it pricing, be it changing our sourcing,” according to CFO Anna Manz. She noted Nestlé’s guidance for 2025 does not factor in any impact from tariffs. While it’s hard to predict what is going to happen with trade policy, Manz warned any new duties could “charge the inflationary environment relatively quickly.”
Read more at Supply Chain Dive
Brookfield Buys National Grid Renewables for $1.7 Billion
Britain's National Grid has reached a deal to sell its U.S. onshore renewables business to Canadian investment firm Brookfield Asset Management for $1.74 billion including debt, it said on Monday. National Grid has been refocusing investments on its energy network business and seeking buyers for its renewables arm and Grain liquefied natural gas (LNG) terminal in Britain as part of its divestment strategy announced last May.
National Grid expects the deal with Brookfield and institutional partners including Brookfield Renewable Partners (BEP.N), opens new tab to be completed in the first half of the financial year to March 31, 2026, subject to regulatory approvals. National Grid Renewables, based in Minneapolis, develops and operates solar, onshore wind and battery storage assets in the United States, with 1.8 gigawatts of capacity in operation and 1.3 gigawatts under construction.