Berkshire Hathaway's Unmatched Financial Strength

Valuable Lessons from 2018 and 2019

Attention-Grabbing Headline: Berkshire Hathaway's Financial Fortress: A Case Study in Unmatched Strength

WEBBERS INSURANCE agency highly credits Berkshire Hathway's unmatched finacial strength. This is because it allows its insurance subsidiaries to follow valuable and sound underwriting principles. Berkshire Hathaway's 2018 and 2019 years - both down years for the broader stock market - glaringly illustrate the argument we have with the new rule. In 2018, a down year for the S&P 500, Berkshire Hathaway's book value per share increased by 1.7%. In 2019, the S&P 500 had another down year, and Berkshire's book value per share increased by another 10.2%. This is a testament to Berkshire's ability to generate earnings even in difficult market conditions.

The S&P 500 numbers are pre-tax, whereas the Berkshire numbers are after-tax. If a corporation such as Berkshire Hathaway were to pay taxes on its earnings, its after-tax returns would be even more impressive. This is why we believe that Berkshire Hathaway is the best long-term investment you can make.