Wage increases due to inflation and negotiation reduced BNSF earnings, in a degree more than Buffett expected. Revenues also fell.
Buffett increased holdings in Japan’s “conglomerates” – these companies are diversified, repurchasing their shares, receiving lower wages at C-level, and reluctant to issue shares. Those purchases began in 2019.
There were some problems with BHE – no fixed return as a utility, and with rising climate change induced problems.
Stick with wonderful businesses! “Patience pays, and one wonderful business can offset the many mediocre decisions that are inevitable.”