Berkshire is the partner.In that rol we purchased $8 billian of Heinz prefdha arries a 00 on hut als other feat nnual retumn to 12%or so.Berkshire and 3G each purchased half of the Heinz common stock for $4.25 billion. Though the Hei acquisition ha ds om trans the more,and that could happen:Certain 3G investors may sell some or all of their shares in the future.and we might increas our ownership at such times.Berkshire and 3G could also decide at some point that it would be mutually ben equity valuation appropriate to the timer to exchange some of our preterred for common shares (at an Our partnership took control of Heinz in June,and operating results so far are encouraging.Only minor With Heinz,Berkshire now owns 8V companies that,were they stand-alone businesses,would be in the Fortune 500.Only 491 V2 to go. utility subsidia rpe冰NY的 。MidAmerican is one of our "Powerhouse Five"-a collection of larg sces that in aggregate,had a record $10.8 billion of pre-tax earnings in 2013,up $758 million from 2012.The other companies in this sainted group are BNSF,Iscar,Lubrizol and Marmon. s393 mill SP.wepad about of the cost in cashte remainder,isued sharesatnd outstanding by 6.1 In other words,t ann l earning ivered Ber s over th on.That satisfie sing pe If the U.S.economy continues to improve in 2014,we can expect earnings of our Powerhouse Five to improve also-perhaps by SI billion or so pre-ta 。Ourm of smaller non-ing earned $4.7 billion pre-tax last year,up from $3.9 billion in 2012.Here,too,we expect further gains in 2014. Berkshire's xtens einsuramceopenationageaiT edatanund ing profit in 2013-t that to us but that we can invest for Berkshire's benefithas grown from $41 billion to $77 billion fullat yearend 1995 chavin ratia intrGIC is GEICo the ca in 1996 ranked number seven among U.S.auto insurers.Now,GEICO is number two,having recently passed Als Ihe reasons to 0-8wth are simp low prices and reha ou ca ir you cut you costs.Buv Berkshire is the financing partner. In that role, we purchased $8 billion of Heinz preferred stock that carries a 9% coupon but also possesses other features that should increase the preferred’s annual return to 12% or so. Berkshire and 3G each purchased half of the Heinz common stock for $4.25 billion. Though the Heinz acquisition has some similarities to a “private equity” transaction, there is a crucial difference: Berkshire never intends to sell a share of the company. What we would like, rather, is to buy more, and that could happen: Certain 3G investors may sell some or all of their shares in the future, and we might increase our ownership at such times. Berkshire and 3G could also decide at some point that it would be mutually beneficial if we were to exchange some of our preferred for common shares (at an equity valuation appropriate to the time). Our partnership took control of Heinz in June, and operating results so far are encouraging. Only minor earnings from Heinz, however, are reflected in those we report for Berkshire this year: One-time charges incurred in the purchase and subsequent restructuring of operations totaled $1.3 billion. Earnings in 2014 will be substantial. With Heinz, Berkshire now owns 81⁄2 companies that, were they stand-alone businesses, would be in the Fortune 500. Only 4911⁄2 to go. NV Energy, purchased for $5.6 billion by MidAmerican Energy, our utility subsidiary, supplies electricity to about 88% of Nevada’s population. This acquisition fits nicely into our existing electric-utility operation and offers many possibilities for large investments in renewable energy. NV Energy will not be MidAmerican’s last major acquisition. Š MidAmerican is one of our “Powerhouse Five” – a collection of large non-insurance businesses that, in aggregate, had a record $10.8 billion of pre-tax earnings in 2013, up $758 million from 2012. The other companies in this sainted group are BNSF, Iscar, Lubrizol and Marmon. Of the five, only MidAmerican, then earning $393 million pre-tax, was owned by Berkshire nine years ago. Subsequently, we purchased another three of the five on an all-cash basis. In acquiring the fifth, BNSF, we paid about 70% of the cost in cash, and, for the remainder, issued shares that increased the number outstanding by 6.1%. In other words, the $10.4 billion gain in annual earnings delivered Berkshire by the five companies over the nine-year span has been accompanied by only minor dilution. That satisfies our goal of not simply growing, but rather increasing per-share results. If the U.S. economy continues to improve in 2014, we can expect earnings of our Powerhouse Five to improve also – perhaps by $1 billion or so pre-tax. Š Our many dozens of smaller non-insurance businesses earned $4.7 billion pre-tax last year, up from $3.9 billion in 2012. Here, too, we expect further gains in 2014. Š Berkshire’s extensive insurance operation again operated at an underwriting profit in 2013 – that makes 11 years in a row – and increased its float. During that 11-year stretch, our float – money that doesn’t belong to us but that we can invest for Berkshire’s benefit – has grown from $41 billion to $77 billion. Concurrently, our underwriting profit has aggregated $22 billion pre-tax, including $3 billion realized in 2013. And all of this all began with our 1967 purchase of National Indemnity for $8.6 million. We now own a wide variety of exceptional insurance operations. Best known is GEICO, the car insurer Berkshire acquired in full at yearend 1995 (having for many years prior owned a partial interest). GEICO in 1996 ranked number seven among U.S. auto insurers. Now, GEICO is number two, having recently passed Allstate. The reasons for this amazing growth are simple: low prices and reliable service. You can do yourself a favor by calling 1-800-847-7536 or checking Geico.com to see if you, too, can cut your insurance costs. Buy some of Berkshire’s other products with the savings. 4