Investing.com — Pilot Co, a unit of Warren Buffett’s Berkshire Hathaway (NYSE:), is discontinuing its international oil trading business, Reuters reported, citing three sources. The decision is aimed at refocusing the company’s efforts on its Pilot Flying J service stations and truck stops in the U.S., the report said.
The company has reportedly dismissed nearly all employees involved in international trading. The resources previously dedicated to trading will now be used to expand its North American businesses, the sources added.
Pilot Co, headquartered in Knoxville, Tennessee, is recognized for its service stations and truck stops. It ventured into international trading following Berkshire Hathaway’s acquisition of a 39% stake in 2017. Over the years, the company, now entirely owned by Berkshire Hathaway, had recruited experienced energy traders to enhance its trading operations.
In other recent news, Berkshire Hathaway, Inc. has been under scrutiny from the Consumer Financial Protection Bureau (CFPB). The CFPB filed a lawsuit against Berkshire’s subsidiary, Vanderbilt Mortgage & Finance, alleging the company pushed families into unaffordable loans for manufactured homes. The lawsuit also claims that the company charged additional fees and penalties when loans became overdue, leading to some borrowers losing their homes. The CFPB is seeking to halt Vanderbilt’s alleged illegal practices and provide relief for the harmed homeowners.
In contrast, Berkshire Hathaway has been actively investing in companies such as Occidental Petroleum (NYSE:), Sirius XM Holdings (NASDAQ:), and VeriSign (NASDAQ:). The company invested approximately $409 million in Occidental Petroleum, around $107 million in Sirius XM Holdings, and about $45.4 million in VeriSign. These investments have resulted in an increase in the trading session for these companies, reflecting a vote of confidence from Berkshire Hathaway.
Lastly, Berkshire Hathaway’s GEICO and Travelers (NYSE:) have been fined $11.3 million by the New York Attorney General and the Department of Financial Services for data breaches that compromised over 120,000 New Yorkers’ personal data. Both companies are required to enhance their cybersecurity protocols significantly as part of the settlements.
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