renewalseason.Thisenablescompaniesto
increaseprices inorder tocompensate for
thegreaterriskundertaken.
Earningsmightwell takeastepback
before regaining some momentum
nextyear.Last year, it shouldbenoted,
wasaparticularlystrongone for theP/C
insurance industry, even with the
catastrophes. Hence, we believe this
makes foratoughcomparisonaswe turn
ourattentionto2025.Thatbeingsaid, re
sults should stay fairly strong onanab
solutebasisaspriceincreasesoughttofa
cilitatetop-linegrowth.Berkshire’sinvest
mentportfoliooughttoholdupbetterthan
most, due to its larger cash position.
Short-term interest rates may stay
elevatedforlongerthaninitiallyexpected.
The company iswell positioned for
long-term growth. Acquisitions are a
possibility as well, given Berkshire’s
strongcashhoard.
Thesesharesoffersolidrisk-adjusted
total returnpotential for the 3 to 5
years ahead. Acquisitions, which aren’t
included inour forecast, couldaddmean
ingfullytoourgrowthassumptions.
AlanG.House February28