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Ans2:

According to the exhibit, it obvious that both insurance segment took up the biggest component of business. Although its revenue declined from 24731 million dollar in 2003 to 23927 million dollar in 2004, Berkshire Hathaway’ total revenue in other segment experienced an increase respectively. Furthermore, other data such as EBT, depreciation and identifiable assets both went up to some extend with a decrease in capital expenditure. In sum, based on the data, so It seems that Buffett’s investment strategy made the company more profitable and expand.

To some extend Buffett’s investment strategy is a kind of concentrated Purchase. Buffett made concentrated purchases within his investment strategy. Berkshire is a major player in the markets for insurance and owns significant portions in well-known, cheap, dividend paying stocks.For its size, company’s portfolio had few stocks. But once a downturn comes, he buys millions of shares of solid businesses at reasonable prices.

However, on the other hand, as you look over the segments above, one thing that’s impossible to miss is the diversity of Berkshire’s empire. It is about insurance to a large extent, but there’s so much more to the company than insurance. As a core holding, Berkshire have exposure to many different industries though many very high-quality companies. Based on just what I outlined above, investor got exposure to finance (insurance businesses, Wells Fargo stock), flightservices(Burlington Northern), retail(Coca-Cola), consumer discretionary (Apparel), and even tech (IBM).

Through his investments and subsidiaries, Buffett has expanded his reach into numerous corners of the global marketplace. By tapping into segment including health care, industry, finance and consumer goods, the Berkshire Hathaway empire has been able to weather market turmoil and profit in times of strength.

So let us think of Berkshire as a fund, but that’s not totally off base. But there are very important features...