As I mentioned earlier, the yearend prices of our major investees were much higher relative to their intrinsic values than theretofore. While those prices may not yet cause nosebleeds, they are clearly vulnerable to a general market decline. A drop in their prices would not disturb us at all—it might in fact work to our eventual benefit—but it would cause at least a one-year reduction in Berkshire’s net worth. We think such a reduction is almost certain in at least one of the next three years.
