Greg Abel on how the Middle East conflict has impacted Berkshire’s subsidiaries

Summary

Greg Abel discusses how the Middle East conflict affects Berkshire Hathaway's subsidiaries, including higher chemical input costs and mixed impacts on the railroad. He emphasizes Berkshire's long-term approach and ability to manage through challenges without reacting to short-term price swings.

• Chemical group input costs have doubled due to petroleum price increases.
• Short-term profits for chemical businesses are down but expected to rebalance via contracts.
• BNSF railroad sees increased demand for some commodities like aggregates and steel.
• Intermodal business becomes more competitive as fuel prices rise.
• Sustained high fuel prices could eventually dampen consumer demand.
• Berkshire is taking a long-term perspective and not risking assets for short-term gains.
• Drag reduction agents are being shipped to the Middle East to ease pipeline constraints.
• Overall, the company is heads-down managing through the situation.