Important negatives affecting our prospects today are: (1) a less attractive stock market than generally existed over the past 24 years; (2) higher corporate tax rates on most forms of investment income; (3) a far more richly-priced market for the acquisition of businesses; and (4) industry conditions for Capital Cities/ABC, Inc., GEICO Corporation, and The Washington Post Company—Berkshire’s three permanent investments, constituting about one-half of our net worth—that range from slightly to materially less favorable than those existing five to ten years ago. All of these companies have
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