Detlev Louis Motorrad-Vertriebs GmbH

Identity

Full Name: Detlev Louis Motorrad-Vertriebs GmbH
Sector: Specialty Retail (Motorcycle Accessories & Apparel)
Headquarters: Hamburg, Germany
Founders: Detlev and Ute Louis
Acquisition: Closed in late April / early May 2015 (mentioned as "a few days ago" at the April 30 Annual Meeting)

Business Description

Detlev Louis is Germany's largest retailer of motorcycle accessories, clothing, and equipment, operating a network of approximately 70 stores. The business was built over 35+ years by Detlev Louis and his wife Ute. After Detlev died, Ute Louis chose to sell the company — and specifically chose Berkshire Hathaway as the buyer.

Berkshire's View

Buffett used the Detlev Louis acquisition at the 2015 Annual Meeting as the most vivid illustration of Berkshire's growing international reputation as a "buyer of choice." The fact that a German family business owner — who had multiple options — chose Berkshire specifically demonstrates that the culture has become an asset independent of the Buffett and Munger personalities:

"She and her husband had spent over 35 years developing this business of retail shops, dealing with motorcycle owners, and lovingly had built this business. Her husband died a couple of years ago. And Mrs. Louis wanted to sell to Berkshire Hathaway. That would not have been the case 30 or 40 years ago."

Berkshire Mentions

2015 Annual Meeting: First and primary mention; used as proof of Berkshire's self-reinforcing culture and buyer-of-choice reputation

Connections

Concepts: Buyer of Choice, Culture, Manager Autonomy, Succession Planning
Themes: Culture as Moat, Guardian of Culture

📚 Historical Mentions & Citations (2)

Click a reference document below to expand and read the exact paragraph(s) containing this concept in the archive.

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2015 LetterReference Only

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Mentioned in this document.

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2015 MeetingExcerpt Available

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WARREN BUFFETT: Well, I think it’s fair that you do, you know, come with a questioning mind to the culture, post-me and Charlie, but I think you’re going to be very — I don’t think you should be surprised, but I think you will be very pleased with the outcome. The culture — I think Berkshire’s culture runs as deep as any large company could be in the world. It’s interesting you’re from Germany, because just three or four days ago, we closed on a transaction with a woman named Mrs. Louis, in Germany. And she and her husband had built a business [Detlev Louis Motorrad-Vertriebs GmbH]. Over 35 years, they’d spent developing this business of retail shops, dealing with motorcycle owners, and lovingly, had built this business. Her husband died a couple years ago. And Mrs. Louis, in Germany — it came about in sort of a roundabout way — but she wanted to sell to Berkshire Hathaway. And, you know, that would not have been the case 30 or 40 years ago.

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