ArmotRCmomymeaatg2ooeae A personal thank-you:The PCC aca ed without the input and assistance of 心oT时n n妆eeach hand wel.H or us With the PC America's business giants that have yet to call us.Operators are standing by of smalle surance busin rned $5 7 hillion last earned between $400 million and $700 millio n,seven that earned between $250 million and $400 million on,and e the years go by. Whe operty,plant and u the United States. I told you earlier about BNSF's record capital expenditures in 2015.At the end of every vear.our railroad's physical facilities will be improved from those existing twelve months earlier. Berkshire Hathaway Ener ("BHE")is a similar story.That company has invested S16 billion in eof te coumyind Las year.BHE made major asgom tisrelctcdboa Welin-fected nd t ca e While Charlie and I search for new bus makin subsidi of these purchases ranged from S300,000 to $143 million. Charlie and I encourage bolt-ons,if they are sensibly- riced.(Most deals offered us most definitely aren't. These purchases deploy capital in operations that fit with our existing businesses and that will be managed e years A personal thank-you: The PCC acquisition would not have happened without the input and assistance of our own Todd Combs, who brought the company to my attention a few years ago and went on to educate me about both the business and Mark. Though Todd and Ted Weschler are primarily investment managers – they each handle about $9 billion for us – both of them cheerfully and ably add major value to Berkshire in other ways as well. Hiring these two was one of my best moves. ‹ With the PCC acquisition, Berkshire will own 101⁄4 companies that would populate the Fortune 500 if they were stand-alone businesses. (Our 27% holding of Kraft Heinz is the 1⁄4.) That leaves just under 98% of America’s business giants that have yet to call us. Operators are standing by. ‹ Our many dozens of smaller non-insurance businesses earned $5.7 billion last year, up from $5.1 billion in 2014. Within this group, we have one company that last year earned more than $700 million, two that earned between $400 million and $700 million, seven that earned between $250 million and $400 million, six that earned between $100 million and $250 million, and eleven that earned between $50 million and $100 million. We love them all: This collection of businesses will expand both in number and earnings as the years go by. ‹ When you hear talk about America’s crumbling infrastructure, rest assured that they’re not talking about Berkshire. We invested $16 billion in property, plant and equipment last year, a full 86% of it deployed in the United States. I told you earlier about BNSF’s record capital expenditures in 2015. At the end of every year, our railroad’s physical facilities will be improved from those existing twelve months earlier. Berkshire Hathaway Energy (“BHE”) is a similar story. That company has invested $16 billion in renewables and now owns 7% of the country’s wind generation and 6% of its solar generation. Indeed, the 4,423 megawatts of wind generation owned and operated by our regulated utilities is six times the generation of the runner-up utility. We’re not done. Last year, BHE made major commitments to the future development of renewables in support of the Paris Climate Change Conference. Our fulfilling those promises will make great sense, both for the environment and for Berkshire’s economics. ‹ Berkshire’s huge and growing insurance operation again operated at an underwriting profit in 2015 – that makes 13 years in a row – and increased its float. During those years, our float – money that doesn’t belong to us but that we can invest for Berkshire’s benefit – grew from $41 billion to $88 billion. Though neither that gain nor the size of our float is reflected in Berkshire’s earnings, float generates significant investment income because of the assets it allows us to hold. Meanwhile, our underwriting profit totaled $26 billion during the 13-year period, including $1.8 billion earned in 2015. Without a doubt, Berkshire’s largest unrecorded wealth lies in its insurance business. We’ve spent 48 years building this multi-faceted operation, and it can’t be replicated. ‹ While Charlie and I search for new businesses to buy, our many subsidiaries are regularly making bolt-on acquisitions. Last year we contracted for 29 bolt-ons, scheduled to cost $634 million in aggregate. The cost of these purchases ranged from $300,000 to $143 million. Charlie and I encourage bolt-ons, if they are sensibly-priced. (Most deals offered us most definitely aren’t.) These purchases deploy capital in operations that fit with our existing businesses and that will be managed by our corps of expert managers. That means no additional work for us, yet more earnings for Berkshire, a combination we find highly appealing. We will make many dozens of bolt-on deals in future years. 5