Berkshire’s economic interest in MidAmerican was

composed of both equity and debt investments such that

the cash flows to Berkshire included interest payments,
common dividends, and preferred dividends. Therefore,
MidAmerican’s free cash flows, the cash flows available
to all debt and equity claims. With regards to the
investment in MidAmerican Energy Holdings, they
experienced a loss of revenue in 2004 as it fell to 170
million while the prior year they had revenue of 416
million. Therefore it can be expected that the
acquisition of PacifiCorp will increase the revenue in
the next year.

Berkshire’s invested $3.83 billion in the “Big Four”

companies in multiple transactions between May 1988 and
October 2003. The big four companies consist of American
express, Coca-Cola, Gillette, and Wells Fargo. In
Exhibit 3 we see that in 2005 American Express had an
annual average total return of 17% and a market value of
$8.546 billion. Berkshire Hathaway owned 12.1% of the
company and the cost of investment was 1.470B. Berkshire
owned 8.3% of shares to the coca cola company. Coca
cola’s market was 8.328 billion and had an average rate
of return of 16%. Berkshire paid 1.299 billion
investment. Berkshire owned 9.7% of Gillette Company.
Gillette’s market share was 4,299 billion and the
average rate of return 9.7% of Gillette Company.
Gillette’s market share was 4.299 billion and the
average rate of return was 14% Berkshire invested 600
million in the company. The final company is Wells
Fargo. Berkshire owns 3.3% of the company. Wells Fargo
market value is 3.508 billion and had an average rate of
return of 1.3%. Berkshire invested 369 million. Since
Berkshire has invested 3.84 billion in the four
companies, the combined share values for the four
companies is $24,681 billion. That is a significant in
their investments and all four companies are holding a
steady market share and average rate of return. I would
say Berkshire made a solid investment that is providing
good on their investment.