I agree. The railroad is hugely significant and it has run into some headwinds. It is a capital intensive business and it appears to have suffered from the effects of inflation, with workers understandably demanding higher wages. The railroad has been a home run investment, with the double stacking and tunnelling work done a few years ago, provided a tremendous (one off) earnings boost. Now we see it is not The Coca-Cola Company. As Charlie says, welcome to life in the big city.

With respect to the wildfires liabilities, I presume this sits outside the regulated return we are allowed to earn? And is therefore a concern.

It will be interesting to see the analysts and market reactions next week. The insurance above trend results could easily have been a different story. That combined with issues at the railroad and BHE and general softening in many other areas could have just as easily have resulted in a bad quarter. Press is unusually too cheery. Talking about huge increases in operating earnings is too simplistic. Insurance has saved the day, this time.

But the long term reasons for owning Berkshire remain intact. It owns plenty of great non insurance businesses and investments. The insurance group is truly outstanding (but does require astute management). Capital allocation discipline is the secret sauce combined with insurance float and there is optionally if the market crashes. Extremely shareholder friendly. The price is reasonable relative to wider market.

One of the things I have learned at great financial cost over the years: it's easy to get too pessimistic on any company. There are just so many off putting things investors can focus on. Take share based compensation at big tech for example. Or worrying about the market. But it's really important not to get too pessimistic, but rather let all the great business qualities combined with the magic of compounding create wealth for you.