Buffett allocates funds in ways that build per share intrinsic value.

At Berkshire, our managers will continue to earn extraordinary returns from what appear to be ordinary businesses.  As a first step, these managers will look for ways to deploy their earnings advantageously in their businesses.  What's left, they send to Charlie and me.  We then try to use those funds in ways that build per-share intrinsic value.  Our goal is to acquire either part or all of businesses that we believe we understand, that have good, sustainable underlying economics, and that are run by managers whom we like, admire and trust.