"The result was significant property damage and a major disruption in Lubrizol’s business. Even so, both the company’s property loss and business-interruption loss will be mitigated by substantial insurance recoveries that Lubrizol will receive. But, as the late Paul Harvey was given to saying in his famed radio broadcasts, “Here’s the rest of the story.” One of the largest insurers of Lubrizol was a company owned by...uh,Berkshire."

Whoops. I wonder if they're going to introduce a policy against such self-insurance?

"Mistakes in assessing insurance risks can be huge and can take many years – even decades – to surface and ripen. (Think asbestos.) A major catastrophe that will dwarf hurricanes Katrina and Michael will occur – perhaps tomorrow, perhaps many decades from now. “The Big One” may come from a traditional source, such as wind or earthquake, or it may be a total surprise involving, say, a cyber attack having disastrous consequences beyond anything insurers now contemplate. When such a mega-catastrophe strikes, Berkshire will get its share of the losses and they will be big –very big. Unlike many other insurers, however, handling the loss will not come close to straining our resources, and we will be eager to add to our business the next day."

This is somewhat concerning. Property/casualty has been a relatively stable insurance market, as Buffett notes. (Major hurricanes not withstanding. I seem to recall reading that, if life insurance had been more common among gay men when the AIDS epidemic occurred, the life insurance industry would have been bankrupt.)

But, there are large-scale new things trundling down the pike. Global climate change, for one. I don't know if BH is involved with flood insurance damages, but large regions of the world are likely to be exposed to them that had not been before. There aren't any statistics to cover those changes. It's gonna be interesting.

"Over the years, many new rules and guidelines pertaining to board composition and duties have come into being. The bedrock challenge for directors, nevertheless, remains constant: Find and retain a talented CEO –possessing integrity, for sure – who will be devoted to the company for his/her business lifetime."

"Devoted to the company for his/her business lifetime?!" A CEO's business lifetime is much more than 18 months! This is clearly an outdated and obsolete (if not completely archaic) idea. How ridiculous!

(A significant chunk of my assets are in BH stock. No baby seals were harmed in the production of this comment.)

"Frequently,the possession of one such directorship bestows on its holder three to four times the annual median income of U.S.households. (I missed much of this gravy train: As a director of Portland Gas Light in the early 1960s, I received $100annuallyfor my service. To earn this princely sum, I commuted to Maine four times a year.)"

Uh, oh. Warning! Warning! Socialism incoming!

"In past reports, we’ve discussed both the sense and nonsense of stock repurchases. Our thinking, boiled down: Berkshire will buy back its stock only if a) Charlie and I believe that it is selling for less than it is worth and b) the company, upon completing the repurchase, is left with ample cash."

I just thought I'd copy that one.