TTI, Inc.

TTI, Inc. was acquired by Berkshire Hathaway in 2007 as part of the "Indy 500" acquisition spree. It is a specialist distributor of passive, connector, electromechanical, and discrete components.

Origin of Relationship

Founded by Paul Andrews, TTI was acquired by Berkshire in early 2007. Andrews, who had built the company into a global leader in its niche, sought a buyer that would maintain the company’s culture and long-term commitment to its suppliers and customers. The deal was characterized by the same speed and simplicity as the Marmon Group acquisition.

Major Milestones

Year	Event
2007	Berkshire acquires TTI from founder Paul Andrews.
2007	Integration into Berkshire as a standalone operation under Paul Andrews' continued leadership.
2021	Paul Andrews passes away. The 2021 Letter memorializes him, noting that TTI's sales grew from $715 million at acquisition to $7.7 billion in 2021, proving the efficacy of Berkshire's "hands-off" acquisition promise.

Strategic Importance

TTI is a masterclass in Specialized Distribution. Unlike generalist distributors, TTI focuses deeply on a specific range of components, maintaining vast inventories that provide a critical service to manufacturers.

Strategic highlights include:

• Inventory as a Moat: TTI's willingness to carry deep inventory of passive components (which have low individual value but are critical for assembly) makes them indispensable to suppliers and customers.
• Managerial Integrity: Paul Andrews was cited by Buffett as the prototype of the "Berkshire manager"—someone who has already made their fortune but continues to run the business with the same passion as an owner.
• Resistance to Disintermediation: By providing technical expertise and reliability in a niche market, TTI maintains margins that would be impossible for a generalist distributor.

🔗 Connections

• Company / People: Warren Buffett, Marmon Group
• Concepts: The Three G's, Moat, Managerial Non-Intervention
• Sources: 2007 Shareholder Letter, 2007 Annual Meeting