- Three large and very attractive fixed-income investments were called away from us by their issuers in 2011. Swiss Re, Goldman Sachs and General Electric paid us an aggregate of $12.8 billion to redeem securities that were producing about $1.2 billion of pre-tax earnings for Berkshire. That’s a lot of income to replace, though our Lubrizol purchase did offset most of it.
Comment: Buffett emphasizes increasing the aggregate pre-tax earnings and incomes. He reinvests into or replaces companies, to achieve growth in aggregate pre-tax earnings and incomes. This is very sound strategy to follow.