The Berkshire cover was pea-green for 1976 and 2,000 of the annual reports were printed...Berkshire still has three major divisions in 1976...The divisions are banking, insurance, and textile, but the company is expanding in different subsidiaries...The return on equity for Berkshire was 17.3%...Operating earnings was $16 million...
The bank owned by Berkshire was Illinois National Bank...It had a return on assets of over 2 percent for the year 1976...Warren report that the bank compared to National City Bank of Cleveland is a well ran bank and returned 1.34% on assets, while Illinois National returned 2%...The bank only had loan losses of approximately $12,000 for the year of 1976...The bank continues to meet the increasing loan demand with its current liquidity...Gene has been with the bank since 1931 and again done an excellent job this year managing the bank...
The bank owned by Berkshire was Illinois National Bank...It had a return on assets of over 2 percent for the year 1976...Warren report that the bank compared to National City Bank of Cleveland is a well ran bank and returned 1.34% on assets, while Illinois National returned 2%...The bank only had loan losses of approximately $12,000 for the year of 1976...The bank continues to meet the increasing loan demand with its current liquidity...Gene has been with the bank since 1931 and again done an excellent job this year managing the bank...
The insurance division had a very good year after two tough years...The management of Phil Liesche of National Indemnity was outstanding...Traditional auto and general insurance were very good...The Homestate operation under Jack Ringwalt increased substantially...Reinsurance lagged the direct insurance business...Overall the insurance division had a good year...Ken Chace is running the textile division and this division had a weak year...The textile business looks is highly cyclical and he hopes for a better year in 1976...
The Berskshire portfolio now has the following securities with market value of over $3 million each...Most of these below securities were purchased during the 1974 and 1975 bear market...GEICO was purchased by Berkshire and Pinkerton's is being accumulated through Blue Chip Stamps...Berkshire owns 33% of Blue Chip Stamps as of year end 1976...K&W Products, now a subsidiary which was purchased in 1975 had solid earnings in 1976...
These holdings below had a market value of over $3 million:
California Water Service, This company would be sold and not in Berkshire's totals in 1977...
GEICO preferred, this insurance company preferred stock is the largest holding...
GEICO common, an insurance company...
GEICO common, an insurance company...
Interpublic, an advertising agency...
Kaiser Shares, a large chemical and aluminum company...
Munsingwear, This company would be sold and not in Berkshire's totals in 1977...
National Presto, an appliance maker...This company would be sold and not in Berkshire's totals in 1977...
Ogilvy & Mather, an advertising agency...
The Washington Post, a newspaper company...
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