The Chrysler Chrysler Company, Inc.

Jim Barteman from Jackson, Mississippi. In describing your allocation of capital to your wholly owned subsidiaries, you wrote in the annual report that, quote, you charge managers a high rate for incremental capital they employ and credit them at an equally high rate for capital they release. How do you determine this high rate and how do they determine how much capital they can release? Berkshire Hathaway: We want our managers to understand just how highly we do value capital.