2019 Performance Review

Berkshire Hathaway ("BRK") BERKSHIRE HATHAWAY Warren Buffett's iconic holding company has significant excess cash and is trading at a cheap valuation Collection of world-class insurance businesses Robust growth in insurance “float” balance over the past decade Attractive long-term returns on invested float balances Consistently profitable insurance underwriting (i.e. negative cost of float) Potential for margin expansion in Berkshire's largest businesses GEICO's loss ratio is >800 basis points higher and its underwriting profit margin ~400 basis points lower than its closest competitor ▸ Despite scale advantages, Burlington Northern's operating profit margin trails best-in-class peer by nearly 800 basis points Excess cash (~20% of market cap) provides financial optionality Likely to be deployed in share repurchases and/or attractive business acquisitions Cheap relative to intrinsic value and history ► Trading at 14x earnings¹, or 1.3x book value per share (1) Based on economic earnings assuming a "normalized" 7% rate of return on BRK's insurance investment portfolio. Source: Company filings 36

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