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<tr> <td width="424" height="380" align="left" valign="top"><table width="424" height="380" border="0" cellpadding="0" cellspacing="0"> <tr> <td width="424" height="25">&nbsp;</td> </tr> <tr> <td width="424" align="left" valign="top"><span class="homeheader">THE BERKSHIRE HATHAWAY PORTFOLIO ...<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ... a different investment choice for 401(k) plan participants&nbsp; </span> <p class="mainbodyleadin2"><font color="#00ab00"><strong>The Portfolio Manager</strong></font><br> Berkshire Hathaway is not a fund. Rather, it is a conglomerate or a holding company. Berkshire owns many companies outright; utility companies (Mid-America), insurance companies (Geico, General Reinsurance), and a host (over 100) of companies that manufacture tools, jet aircraft, restaurants, jewelry stores, and even underwear (Fruit of the Loom).</p> <p class="mainbodyleadin2">Additionally, Berkshire Hathaway owns the stock, as a long-term investment, of many of the largest U.S. companies. These include Coca Cola, American Express, Proctor &amp; Gamble, GE, Goldman-Sachs, Wal-Mart Stores and Wells Fargo. The market value of the stock of each company exceeds $1 billion. </p> <p class="mainbodyleadin2"><font color="#00ab00"><strong>The Investment Strategy</strong></font><br> The company is managed by Warren Buffet and Charlie Munger, who have been co-managers since taking over the firm's management in 1965. Their investment strategy is simple: </p> <p class="mainbodyleadin2" style="padding-left: 40px;">Don't buy anything you don't completely understand.<br> Buy only companies with wide moats. A moat is some factor that keeps others from competing, such as capital requirements, intellectual property, or economy of size.<br> Buy at a low price and keep what you buy.</p> <p class="mainbodyleadin2">Applying this discipline, they recently announced the purchase of the Burlington Northern Railroad. The cost of the shares they didn t already own was approximately $26 billion. The BNR has no competition in the markets it serves, no one else has enough capital to start a competing railroad, and railroads can move freight at a fraction of the cost of trucks  a significant moat as energy costs are expected to increase. </p> <p class="mainbodyleadin2">In the most recent annual letter to shareholders, Warren Buffet wrote:</p> <p class="mainbodyleadin2" style="padding-left: 40px">"In good years and bad, Charlie and I simply focus on our four goals:</p> <p class="mainbodyleadin2" style="padding-left: 40px"> (1) maintaining Berkshire's Gibraltar-like financial position, which features huge amounts of excess liquidity, near-term obligations that are modest, and dozens of sources of earnings and cash; </p> <p class="mainbodyleadin2" style="padding-left: 40px"> (2) widening the 'moats' around our operating businesses that give them durable competitive advantages;</p> <p class="mainbodyleadin2" style="padding-left: 40px"> (3) acquiring and developing new and varied streams of earnings;</p> <p class="mainbodyleadin2" style="padding-left: 40px"> (4)&nbsp; expanding and nurturing the cadre of outstanding operating managers who, over the years, have delivered Berkshire outstanding results.&quot;</p> <p class="mainbodyleadin2"><font color="#00ab00"><strong>The current (October 2009) portfolio: <br> </strong></font>Berkshire Hathaway Class A<br /> Berkshire Hathaway Class B</p> <p class="mainbodyleadin2">The only difference between the share classes is that the B class shares are worth 1/30th of the A class shares. </p> <p class="mainbodyleadin2"><font color="#00ab00"><strong>Expenses <br> </strong></font>Because this is a Model portfolio, it carries none of the usual mutual fund sales commissions, selling concessions, administrative expenses and fund manager costs.</p> <p class="mainbodyleadin2">Through TD Ameritrade transaction costs are $9.95 regardless of the number of shares, and BenefitWorks charges .0002916 monthly, or 35/100ths of one percent of assets annually to unitize the portfolio and maintain the daily NAV (net annual value, or share price) calculation. The average "no-load" managed mutual fund charges 1.4% of assets. Mutual funds purchased through insurance companies or banks may have additional fees. </p> </td> <td width="12" height="380">&nbsp;</td> </tr> </table> </td> <td width="4" height="380" align="right" valign="top"></td> <td height="380" vAlign="top" width="296" align="right" class="mainbodyleadin2"><IMG src="/images/BenefitWorks_FaqsCallout.jpg" width="271" height="205"><BR> <a href="TGBRKB.pdf"><img src="/images/acrobat.jpg" border=0><br>Click here for a printable PDF<br>version of this information</a></td> </tr> </table> </td> </tr> <tr> <td width="900" height="69" bgcolor="#f9f9e6">&nbsp;</td> </tr> </table> </td> </tr> </table> </body> </html>