Extremely strong competitive position, supported by a highly diversified business mix Experienced and focused management team Very strong operating performance Very strong consolidated capitalization, driven by the historical retention of all earnings within the company Very strong liquidity Very strong financial flexibility Insurance and reinsurance capitalization, as measured by Standard&Poor's capital adequacy model, is below the current rating level Insurance subsidiaries' very high tolerance for equity-market exposure and large illiquid investments in affiliated companies Exposure to equity and credit markets volatility through derivative contracts Management succession risk Standard&Poor's Ratings Services' counterparty credit rating on Berkshire Hathaway Inc. (BRK) reflects our view of the company's extremely strong competitive position, very strong earnings, very strong liquidity, and conservative
