Shreya Murthy

And the capital to run the business, it was only $40 million.

So they'd grown the amount of capital by 4x, 5x, but they'd grown the actual cash flow from that business significantly from $5 million to $82 million.

And so Warren Buffett says, this means we have had to reinvest only 32 million since 1972.

1972 to 2007, he's reinvesting 32 million.

And every year he gets a check for $82 million.

That's a fantastic cash flowing business.

What did he do with that business?

Which generated pre-tax earnings of 1.35 billion or something like that, which was sent to Berkshire.

Well, he bought a railroad.

So...

BNSF Railways, the railways require a ton of capital to operate.

BNSF consumed 3.8 billion last year.

They also make a lot of money.

The net income was 5.5 billion on revenue of 23.4 billion, but it requires a lot of revenue, a lot of cash tied up in the business to run that.

And so to put that in perspective, the total amount of money that Berkshire has made from See's Candy is probably less than three billion, so less than BNSF made last year.

So which is a better business?

And he goes on to talk about cloud and Google and how they have the search engine, throws off cash, and they can use that to build the railroad of the future, which is all the data centers and AI infrastructure.

And so a lot to like, and it's not as much of like, oh, this is wildly outside of the wheelhouse.

Berkshire's never seen a business like this.

That's not true.