The path to Omaha is not a straight line, but if you can get there, they say that the result is worth it. Earlier this spring, we made careful plans to attend the annual meeting of the shareholders of Berkshire Hathaway Inc in Omaha, Nebraska, the generational home (and headquarters) of Warren Buffett, CEO and Oracle Omnipotent.We had heard so much from media and clients who had attended this event that it was an exciting possibility in our lifetime to see a plainspoken man whose lifetime investment wisdom has made him a living legend.

As the time drew close, we reluctantly cancelled due to the chancy two-tier process of obtaining entry tickets, all hinging upon receiving a coupon mailed with the BRK/A annual report. Given the track record of Bermuda mail, in the past this report has traditionally arrived in our post box long after the Warren Buffettt and Charlie Munger show was over.

Even the best-laid plans often have unanticipated consequences. The midwestern US had a horrendous week of devastating tornadoes, flattening towns, and ruining lives. According to media reports, in Omaha, shareholders that did attend waited in thunderstorms (temperature cold!) outside the conference centre from 4 a.m. onward Saturday, May 5, 2007 to get a first-come first served seat while many had to settle for watching the meeting on videos set-up outside the gates. Regretfully, 3,000 miles is too far to go for the privilege of standing in front of a TV set.

Performance results. 2006 was a very good year for Warren Buffett, CEO, of Berkshire Hathaway Holding Co Inc (with more than 75 diverse subsidiary companies) with an equity position return of 18.4 percent, beating the S&P 500 index by 2.6 percent.

BRK/A continues on its more than 40-year pace of exuberant expectations with a net cumulative overall gain since inception of 361,156 percent as compared to the S&P performance for the same time frame of 6,479 percent.

As at May 9, 2007, BRK/A shares market value closed at $109,100. The appreciation in just one share of Berkshire has been nothing short of miraculous, even comparing back to 1995 where one share - Class A - was valued then at $5,550.

Challenging the world to step up to the plate Astonishingly, last year, Mr. Buffett gave away the majority of his personal fortune, estimated at more than $40 billion, for the common good. He also made it clear that upon his demise, most of his residual estate will be donated to charity. As one realises the pure age of maturity, it is interesting to see that many people value intangibles more than money: good health, increased intellectual capacity and the ability to make a contribution to society.

The Knight of Omaha to the rescue of Equitas. Donating to charity was not the only master surprise from Mr. Buffett last year. In a rather great sense of irony, with an outsize treasure chest, BRK/A, one giant American insurance company approached the venerable and ancient Lloyds UK members in London regarding Equitas, the pooled misery of 20 years of environmental and products claims liability, mostly due to asbestos contamination. BRK/A has become its retroactive reinsurer, taking on the risk of paying claims for possibly another 50 years, while relishing the challenge of investing its cash float.

With sheer confidence in the future, earned from more than 40 years of a positive track record, Berkshire Hathaway management has become very skilled in the management of insurance 'cash float'.

This is a term denoting the employment of investing techniques to achieve a return on the premiums paid to an insurance company, prior to the time that claims need to be paid. Those companies who derive a profit above and beyond the cost of claims, on a consistent basis, can become extremely profitable.

As noted in the financial report, all of BRK's insurance lines made profits in 2006, ending the year with a reported cash float in excess of 50 Billion dollars. The insurance and reinsurance industry continues to be, however, a studied practice of managing risk, always recalculating the cost of the unknown catastrophe on the horizon.

The essence of the man. I've always thought that Mr. Buffettt (now 76 years young) resembled a kindly grandfather (which no doubt he probably is), amiable, smart, quick-witted, caring and a man of integrity. He truly believes in simplicity in his life, and transparency in his business dealings.

His annual letters to shareholders are a combination of folk humour, mini-entertainment, wit, humility, and extraordinary shrewdness. He is a man who lives his personal code of conduct, regardless of the criticism of others, and has demonstrated time and again in words and actions the courage (and extraordinary equity appreciation) of his convictions.

He has always lived in the same house, gets paid the same salary, $100,000 per year, and appears to embrace each day with a sense of enthusiasm and opportunity.

Next week: more on Berkshire Hathaway and Warren Buffett's opinions on the US dollar, foreign currency, derivatives, the housing bubble and CEO golden parachutes and the economy.

Martha Harris Myron CPA CFP is a dual citizen (Bermudian/US). She is a Senior Wealth Manager at Argus Financial Limited specializing in wealth investment advisory services for capital preservation and comprehensive financial solutions for clients considering lifestyle transitions and rewarding retirements. Confidential email can be directed to marthamyron@northrock.bm or 294-5709

The article expresses the opinion of the author alone. Under no circumstances is the content neither of this article to be taken as specific investment, legal, tax or financial planning advice, nor as a recommendation to buy/ sell any investment product. The Editor of the Royal Gazette has final right of approval over headlines, content, and length/brevity of article.