Aging Warren Buffett Led Berkshire Hathaway Invests Billions in Asian Firm, Soon Sells Most in ‘Red Flag’ Issue for Dozens of Manufactured Housing Producers; plus Sunday Weekly Headlines Recap
On April 11, 2023 Reuters reported that “Warren Buffett called geopolitical tensions “a consideration” in Berkshire Hathaway Inc’s (BRKa.N) decision to sell most of its stake in Taiwanese chipmaker TSMC (2330.TW) just a few months after buying it, Nikkei reported on Tuesday.
Berkshire had bought more than $4.1 billion of Taiwan Semiconductor Manufacturing Co’s shares between July and September 2022, but in February said it had sold 86% of its stake by year-end.
The size of the investment suggested that Buffett, rather than one of his Berkshire portfolio managers, had bought the shares for Berkshire, and the sale was unexpected given the billionaire’s preference to invest for the long-term.” The rest of their report is linked here.
The proverbial headline red flag?
A high-ranking official for a Manufactured Housing Institute (MHI) member producer has told MHProNews that geo-political developments with respect to China caused his firm to seek supply chain sources outside of Communist China. How many other manufactured home producers have or are starting similar moves due to the growing risk of conflict between China-Taiwan, other Asian nations, and the United States?
There is growing talk about some HUD Code manufactured housing producers following the example of now Cavco Industries (CVCO) owned Solitaire Homes, which has some of its production coming from Mexico. Lower labor costs are among the reasons.
While it is apparently tempting to some to send those jobs and the lure of ‘lower costs’ and perhaps ‘easier regulations’ (not on the homes – which would still have to be built to the HUD Code – but on environmental, labor, production center standards, etc.) by building manufactured homes in Mexico instead of the U.S., there are red-flags there too. Mexico has a socialist president. Venezuela nationalized several industries under their socialist leadership. Per Intellectual Takeout: “Eight Venezuelan Industries Hugo Chavez Nationalized” included “steel and shipping to agriculture, mining, banking, electricity, telecommunications, and more…” There can be a high indirect cost, as well as other risks, from foreign investments. Buffett’s move has underscored that reality. Even when Berkshire may take a hit on an investment, they can obviously afford it. But several smaller manufactured home producers would be harder pressed to take the hit of having an investment or supply chain sour in a rapid geo-political development.
Additionally, there is the ‘red flag’ that Communist China is, well, ‘red’ or Communist. As former CNN reporter turned WMAL pundit Chris Plante has aptly pointed out, for most of the world, ‘red’ means communist (not conservative or “Republican” as in the U.S.), socialist, Marxist or “left wing.”
Both major parties share different measures of blame for the ever-more-apparently outrageous policy of giving Communist China such a big chunk of U.S. trade and investment. Reuters reported on 2.22.2023 that “China’s holdings of U.S. Treasuries last year shrank by $173.85 billion…” China is openly talking about war and preparations for war.
The analysis of what war with China means in the video below is rather rosy from the U.S. perspective, and it comes from a source that is not necessarily pro-American.
A far less rosy picture is painted by this recent CNN News report on China’s preparations for war against Taiwan and the U.S. It specifically mentions that some believe that such a war could occur by 2025, less than two years from now. But any number of factors could occur that could trip the giant Chinese nation and population into war sooner.
CNN was correct in mentioning that both Democrat Nancy Pelosi, the former Speaker of the House, and Republican Kevin McCarthy have had high profile meetings with Taiwanese officials. But what manufactured home producers, as well as all others who have investments and supply chains in China ought to consider is this. Given that Buffett’s Berkshire decided to sharply pivot in a multi-billion dollar investment in that region recently, obviously independents or smaller firms should think about all of the ramifications of that move.
Don’t miss today’s different, but still macro-American and still manufactured housing industry related topic in today’s postscript.
With no further adieu, here are the headlines in MHVille’s runaway most-read platform of its kind for the week that was from 4.9 to 4.16.2023.
Postscript – Robots Replacing Humans in Restaurants and in Factory Housing Production
According to Valuetainment, “McDonald’s has recently launched new locations that are run entirely by robots—not a single human employee.These Texas, Colorado, and Nevada stores are the most recent to be tested without a single walking, breathing person to help with orders, cooking, pick-up, or drive-through. While most have used automated kiosks in fast food establishments, these robot-only McDonald’s stores will serve customers through every step of the fast food process.
Diners can use kiosks to place orders inside the store or they can order ahead of time with the app. Completed orders are delivered via conveyor belt or they’re available on pick-up shelves, and food delivery drivers have a distinguished area to access orders.” The article went on to say that the firm will likely face “backlash” for the move. Left-leaning CBS News and Newsweek are among those that made similar reports on the development.
Over a decade ago, a successful, but somewhat reclusive manufactured housing pioneer invited this writer to his Chicagoland office. He told me about a concept he had researched for an automated production center for HUD Code manufactured homes. He said it would only take 3 people to operate the plant. He was known for quality HUD Code production as well as a residential style manufactured home development, among other accomplishments. A basic Google search doesn’t reveal that such a production center has been built for manufactured housing, but that a similar modular housing production has been developed in the U.S. and Scandinavia. Forbes had an article dated 1.24.2022 that had the title “Why Your Next Home Will Be Built By Robots.” It was about a modular building center.
Additional Information with MHProNews Analysis and Commentary in Brief
The opportunities in factory-built housing, including manufactured housing, are immense. But the threats to an array of industry professionals are at times seemingly daunting.
There are numerous subcategories to each of the above.
Several possible takeaways emerge from a proper understanding of developments since the last half of 2019 in America and for MHVille. Whatever the cause of the increasingly believed ‘lab leak theory’ for the COVID19 declared ‘pandemic,’ what was once considered a ‘conspiracy theory’ has since become mainstream.
MHProNews and MHLivingNews provided ‘both sides’ of the question about the origins of COVID19. While the view often slurred by the governmental and much of mainstream media was presented, so too was the evidence that Communist Chinese officials could have helped the U.S. and the world dodge much of the impact of the declared pandemic by warning the world early and often about what apparently occurred in Wuhan, China. The pandemic cost the U.S. trillions of dollars, perhaps a million lives lost, according to some sources. That being so, why would Americans want to put more money into a regime that has proved so costly to America?
But in looking at Communist China, one must also look at those international corporations and billionaires that pumped so much money into China. That created the conditions that have led to where the U.S. is today.
Both major parties have erred at various times on China-policy. But now, the question is, which major party will lead the U.S. out of the current problematic scenario.
Part of the takeaway is this. MHProNews/MHLivingNews looks at facts and evidence. We apply historic, common sense, and other insights. What emerged in recent years on MHProNews is arguably the most-trustworthy platform for accurate information and analysis that presents a range of views, but still points out what the likelihood in a given situation appears to be, based on known evidence.
Trade media can and should be a ‘cheer leader’ when it is appropriate to do so. But authentic trade media also holds the powers that be to account. Who says? The American Press Institute. Click here to subscribe to the most complete and obviously most read manufactured housing industry news in seconds. Enter your desired email address, press submit, confirm in your inbox. Then You’re All Set for x2 weekly emailed news updates! To report a news tip – either ON or OFF the record – click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP or COMMENTS in the subject line.
Our son has grown quite a bit since this 12.2019 photo. All on Capitol Hill were welcoming and interested in our manufactured housing industry related concerns. But Congressman Al Green’s office was tremendous in their hospitality. Our son’s hand is on a package that included the Constitution of the United States, bottled water, and other goodies.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing.
For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.
This article reflects the LLC’s and/or the writer’s position, and may or may not reflect the views of sponsors or supporters.
