TTI
Berkshire Hathaway's specialty electronic components distributor acquired in 2007, led by Paul Andrews, known for its efficient operations and strong customer relationships.
TTI (Tech-Tronic Industries)
Founded: 1971 Acquired by Berkshire: 2007 ($2.1B) CEO: Paul Andrews Status: Berkshire Hathaway subsidiary
Overview
TTI is a specialty distributor of electronic components, including capacitors, resistors, connectors, and other passive and electromechanical devices. The company serves as a critical link between component manufacturers and electronics manufacturers worldwide.
Why Berkshire Acquired TTI
Paul Andrews Leadership
Buffett praised Paul Andrews repeatedly at annual meetings:
"Paul Andrews runs TTI. And it's a wonderful business."
Market Position
- World leader in specialty electronics distribution
- Over 1 million products in inventory
- Strong relationships with both suppliers and customers
Financial Characteristics
- Low capital requirements
- Consistent earnings
- Strong cash conversion
Business Model
Specialty Distribution
TTI focuses on specialized components that require technical expertise:
- Passive components (capacitors, resistors)
- Electromechanical components
- Interconnect products
Customer Base
Serves a diverse range of electronics manufacturers:
- Industrial equipment
- Automotive electronics
- Medical devices
- Communication equipment
Performance Under Berkshire
TTI has been a reliable performer since acquisition:
- Maintained strong margins
- Continued market leadership
- Paul Andrews continued as CEO post-acquisition
Related
- warren-buffett — Who acquired TTI
- berkshire-hathaway — Parent company
- paul-andrews — TTI CEO
Source
Berkshire Hathaway Annual Meetings