Random thoughts on the Annual Report

Charlie should forever be credited with being the architect

The tribute to Munger is simple, gracious and to the point. WEB’s ability to communicate in simple, clear, and easy to understand is amazing, given his age.

our allegiance will always be to our country and our shareholders…
Berkshire’s goal will be to function as an asset to the country

just as it was in a very minor way in 2008-9

We particularly like its vast oil and gas holdings in the United States, as well as its leadership in carbon-capture initiatives, though the economic feasibility of this technique has yet to be proven. Both of these activities are very much in our country’s interest.

The country can’t run without rail

I am particularly proud of both BNSF’s contribution to the country

BNSF will continue to be a major asset of the country

When the dust settles, America’s power needs and the consequent capital expenditure will be staggering. I did not anticipate or even consider the adverse developments in regulatory returns and, along with Berkshire’s two partners at BHE, I made a costly mistake in not doing so

Berkshire/ WEB made huge bet in BSNF and BHE, counting on regulated, utility structure to provide 10% return on equity. That assumption is now challenged, a multi-decade ZIRP challenged why utilities deserve 10% guaranteed returns. So WEB has to come out and declare his and Berkshire patriotism and remind regulators they need the capital from capitalist’s like him. He addressed both sides with carbon capture and Oil investments!!! This franchise is super important for the Operating Companies earnings. BTW, the annual report also reminds Berkshire employs close to 400K. Yet Berkshire earned over $11.7 B on its holding of foreign government securities.

Though we very much like our ownership,… Berkshire has no interest in purchasing or managing Occidental.

Berkshire buying OXY chatter is shut at least temporarily.