Berkshire Hathaway (BRK.A, Financial)(BRK.B, Financial) is a conglomerate holding company owning subsidiaries engaged in a number of business activities. A tepid insurance outlook caused by a general lack of pricing, combined with a dour near-term outlook for Berkshire’s railroad and industrial businesses has caused Berkshire’s stock price to retreat over the calendar year. With respect to insurance, Berkshire in our view, is behaving properly and building value as it holds capital in anticipation of better future pricing. While the industrial businesses of Berkshire are seeing temporary headwinds we believe they continue to grow and build the per share value of the company. The company’s third quarter purchase of Precision Castparts (a business we own) was at a fair price and represents yet another long-term compounder in the Berkshire portfolio. We have been adding to our position over the calendar year on price weakness.
From Wallace Weitz (Trades, Portfolio)'s Partners Value Fund commentary for third quarter 2015.
