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