Subject: Re: Second quarter comments
If I could ask Mr Buffett one question about the recent financial results it would be:

The insurance business is performing strongly, which is a huge driver of value and great to see. However, we are seeing considerable weakness across quite a number of operating businesses. Could you comment on what is driving this at the various different businesses? (Are customers happy? Are we maintaining market share? Are we seeing technology disruption? Are managers loosing focus? How has inflation changed the economics? Is the consumer really starting to struggle? Are the drivers unique to Berkshire or are competitors also struggling?)

All businesses have a life cycle and Berkshire famously is a home for that entire life cycle. We of course hope that the businesses survive and grow for multiple decades and that has been the experience but we must also accept that as time passes, some will begin to fade. You have said in the past, or a least Charlie has said in the past, that as Berkshire generates capital and deploys that capital into new businesses and investments some of the older allocations begin to fade away and become less significant. Much like an index Berkshire is continually being restocked with new cash generators.

Given that it is getting increasingly difficult to allocate larger amounts of capital into high return situations. Should we be concerned that some of our cash cows are getting old and are not being replaced? The cash pile has become enormous. But we are getting a return on it but nothing too exciting after inflation. We have bought a material amount of Berkshire stock back in recent years at very attractive prices but that door is shut for now. We have done an incredible allocation with Apple but the fruits of that move have been picked perhaps. The oil investments recently are huge and we will see how that plays out. Probably very well.

Something always shows up for Berkshire and it will again but it's an interesting period.