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Non-Tech : Berkshire Hathaway Class B -- Ignore unavailable to you. Want to Upgrade?

To: Leroyt who wrote (964)	8/24/1999 3:51:00 PM
From: Benkea	Read Replies (1) \| Respond to of 1652

Everything you ever need to know is included in the 1977 - 1998 Chairman's letters which EVERYONE who is serious about investing should read: "To depict something closer to economic reality at Berkshire than reported earnings, though, we employ the concept of "look-through" earnings. As we calculate these, they consist of: (1) the operating earnings reported in the previous section, plus; (2) our share of the retained operating earnings of major investees that, under GAAP accounting, are not reflected in our profits, less; (3) an allowance for the tax that would be paid by Berkshire if these retained earnings of investees had instead been distributed to us. When tabulating "operating earnings" here, we exclude purchase-accounting adjustments as well as capital gains and other major non-recurring items." berkshirehathaway.com

To: Leroyt who wrote (964)	8/24/1999 3:54:00 PM
From: The Duke of URL©	Respond to of 1652

Any dividends paid by "DIS" would have already been included in the BRK earnings figure. Remember, the dividend payment does not reduce current earnings at "DIS", so you have to subtract them so that they are not double counted. Just as you must subtract the value of the stock asset for the same company on BRK's books from the formula, because they also reflect the value of the dividend. The theory, I suppose, is that major holdings such as DIS are considered to be "part-owned" by BRK even though the Consolidated Financial Rules would not otherwise count them. Please comment. TIA Duke