Another Annual

3 March 2006

At roughly 9:00a.m. EST tomorrow, Berkshire Hathaway will post the annual report and letter to shareholders on the web site. Each year we remind readers that careful study of Warren Buffett’s letters and annual reports since 1977 may provide a better education than a couple of years in a top-notch business school. Others said it; we believe it.

Berkshire completed the acquisition of BusinessWire this week. You can read about that here and here.

The company’s results for 2005 will include some charges for the losses incurred for Hurricanes Katrina and Rita, other storms and other catastrophic losses. Remember, Berkshire is first and foremost an insurance company, though its list of holdings grows nearly every year. In the third quarter alone, Berkshire recorded almost $3 billion as an estimate against the ultimate losses recorded from Hurricane Katrina.

Yesterday, March 2, 2006, an “A” share of Berkshire closed at $87,000. Many believe that number might be well below the company’s intrinsic value. Let’s watch!

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