berkshire dividend supplemental guide 6.30 · 46 public square i wilkes-barre, pa 18701 i...

Gerard Mihalick, CFA I [email protected]

46 Public Square I Wilkes-Barre, PA 18701 I 570.825.2600 Berkshire Dividend Supplemental Guide 6.30.2019

*Intended for advisor use only. Not for distribution to general public.

Berkshire Dividend Growth StrategyTable of Contents

Berkshire Review Q2 2019 Berkshire Firm Update Page 3 “Forward Looking” Process Page 4 Detailed Equity Selection Process Page 5

Performance Recap Portfolio Dividend Increases – Rolling 1 Year Page 6 Berkshire Growth of Dividend Income Charts Pages 7 - 8 Comprehensive Performance History Pages 9 - 10 Individual Security/Sector Performance Pages 11- 12

Observed Market Themes Investors Facing a Sea of Macro Confusion? Page 13 Macro Confusion - “Good” Chart / “Bad” Chart Pages 14 - 20 Building the Investment Playbook 1 Why Berkshire Dividend Portfolio Now? Page 22

Berkshire Portfolio - Companies of Interest 5G Technology to Unlock Future Growth? Page 23 Walmart Challenging Amazon? Page 24 Intel (INTC) – An Attractive Entry Point? Pages 25 - 26 Kinder Morgan – Restructured Energy Transportation? Page 27

Disclosure Page 28

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Investors should carefully consider investment objectives, risks, charges and expenses. Additional information can be obtained from a financial professional and should be read carefully before investing. Dividends and yields represent past performance, there is no assurance they will continue to be paid in the future. Platform restrictions may apply. 2

Berkshire Dividend Growth StrategyBerkshire Firm Update Q2 2019

Our current business fundamentals are the strongest in our history Ownership: 100% employee owned with more than a 30 year operating history Extremely low professional turnover Controlled, measured growth: Roughly $2.6 Billion under supervision* as of 6.30.2019 Low overhead cost structure enhancing the long-term stability of the firm

Our investment principles remain consistent and focused Deliver quality investment results Narrow focus on large cap dividend investing

Enduring dividend growth to meet client goals and objectives “Forward looking” fundamental process vs. backward looking screening

Our service model provides distinguished support Maintain premier boutique status to quality advisors and platforms Direct communication with portfolio managers to enhance advisor support Customized portfolio management*

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Investors should carefully consider investment objectives, risks, charges and expenses. Additional information can be obtained from a financial professional and should be read carefully before investing. Dividends and yields represent past performance and there is no assurance they will continue to be paid in the future. Platform restrictions may apply. “Forward Looking” does not imply a level of skill, however the term is used to reference the way we approach our analysis of individual companies. *Based on platform availability. 3

Berkshire Dividend Growth Strategy“Forward Looking” Process

Simple screens of historical data may fail to capture the full dividend growth opportunity set-- especially in a discerning market

Berkshire focus: identify perennial dividend growers before they are fully recognized by the market

Bottom up selection process focus: Future: income statement, balance sheet and free cash flow Optimal capital structure, future dividend payout ratio Valuation: present value of future cash flow Our edge? Patience, discipline and the ability to capitalize on the short sightedness of others

Some of our highest conviction dividend growth stories flunk traditional backward looking screens

Cisco

Amgen

Kinder Morgan

Certain financials owned in the Berkshire portfolio

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Investors should carefully consider investment objectives, risks, charges and expenses. Additional information can be obtained from a financial professional and should be read carefully before investing. Dividends and yields represent past performance and there is no assurance they will continue to be paid in the future. Platform restrictions may apply. “Forward Looking” does not imply a level of skill, however the term is used to reference the way we approach our analysis of individual companies. 4

Equity Selection ProcessSCREENING: High and potentially sustainable return on equity (ROE)

CAREFUL OBSERVATION:Price events, earnings misses, reservoir of company knowledge, areas of expertise by Portfolio Manger, contrarian, short-sightedness of others.

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Berkshire Dividend Growth Strategy1Year Rolling Dividend Increases 6.30.2019

Source: Bloomberg. *If multipleincreases occurred throughoutthe year, dividends andpercent change are annualizedfor comparative purposes.**Position has been removedfrom the portfolio. Dividendincrease results are based onunderlying holdings of arepresentative compositeaccount. More information onthe composite is provided inthe performance section on thedisclosure page. A Fullcomposite with disclosure canbe acquired upon request.Returns/ dividend yields aregross of fees. DividendIncreases are based upon dateof announcement. There is noguarantee dividends willcontinue to be paid in thefuture. Investments are notFDIC-insured, nor are theydeposits of or guaranteed by abank or any other entity, sothey may lose value. Investorsshould carefully considerinvestment objectives, risks,charges and expenses.Additional information can beobtained from a financialprofessional and should beread carefully before investing.Holdings are subject tochange.

6

Company Name SymbolAnnouncement

Date Prior Qtr. Dividend New Qtr. Dividend Percent ChangeWP Carey* WPC 6/13/2019 $1.020 $1.034 1.37%Bank Of Montreal* BMO 5/29/2019 $0.960 $1.030 7.29%Chubb CB 5/16/2019 $0.730 $0.750 2.74%Leggett & Platt LEG 5/7/2019 $0.380 $0.400 5.26%Qualcomm QCOM 5/7/2019 $0.620 $0.620 0.00%Johnson & Johnson JNJ 4/25/2019 $0.900 $0.950 5.56%Exxon Mobil XOM 4/24/2019 $0.820 $0.870 6.10%Kinder Morgan KMI 4/17/2019 $0.200 $0.250 25.00%Procter & Gamble PG 4/9/2019 $0.717 $0.746 4.00%Coca Cola KO 2/21/2019 $0.390 $0.400 2.56%Walmart WMT 2/19/2019 $0.520 $0.530 1.92%Waste Management WM 2/19/2019 $0.465 $0.513 10.22%PPL PPL 2/14/2019 $0.410 $0.413 0.61%Cisco Systems CSCO 2/13/2019 $0.330 $0.350 6.06%Roche* RHHBY 1/31/2019 $1.027 $1.075 4.60%Intel INTC 1/24/2019 $0.300 $0.315 5.00%Norfolk Southern* NSC 1/23/2019 $0.720 $0.860 19.44%Kimberly-Clark KMB 1/23/2019 $1.000 $1.030 3.00%Wells Fargo* WFC 1/22/2019 $0.390 $0.450 15.38%Schlumberger SLB 1/18/2019 $0.500 $0.500 0.00%General Mills GIS 1/14/2019 $0.490 $0.490 0.00%Abbott ABT 12/14/2018 $0.280 $0.320 14.29%Pfizer PFE 12/14/2018 $0.340 $0.360 5.88%AT&T T 12/13/2018 $0.500 $0.510 2.00%Amgen AMGN 12/7/2018 $1.320 $1.450 9.85%Nucor NUE 11/30/2018 $0.380 $0.400 5.26%Emerson EMR 11/6/2018 $0.485 $0.490 1.03%AbbVie* ABBV 11/2/2018 $0.710 $1.070 50.70%Merck MRK 10/25/2018 $0.480 $0.550 14.58%Honeywell HON 9/28/2018 $0.745 $0.820 10.07%Lockheed Martin LMT 9/27/2018 $2.000 $2.200 10.00%McDonald's MCD 9/20/2018 $1.010 $1.160 14.85%Microsoft MSFT 9/18/2018 $0.420 $0.460 9.52%M&T Bank MTB 8/21/2018 $0.800 $1.000 25.00%BP PLC BP 7/27/2018 $0.600 $0.615 2.50%PNC Financial PNC 7/5/2018 $0.750 $0.950 26.67%JP Morgan Chase JPM 6/28/2018 $0.560 $0.800 42.86%

Berkshire Dividend Growth StrategyPortfolio Value and Income w/ Dividends Reinvested

Intended for illustrative purposes only. Income chart is based on the assumption $1,000,000 is invested in the Berkshire Dividend Growth and Income Strategy at the inception of the Berkshire Dividend Growth and Income composite.(6/30/2009) The $1,000,000 investment is adjusted monthly based on the stated monthly total returns for the given composite. This includes accumulation and reinvestment of the dividend. The monthly adjusted account values are thenmultiplied by the current yield of the respective composite. The resulting monthly income figures are then charted in the graph. Dividends are not guaranteed, and may be subject to change. Investing based on dividends alone may not befavorable as it does not include all material risks. There is no guarantee any stated (or implied) portfolio or performance objective mentioned by Berkshire can be met. Fees are not included in the analysis and would lower values.Berkshire Dividend Growth and Income current yields are calculated in Bloomberg from a representative account only. Individual account yields and returns can vary. Calculation limitations: Changes of the underlying holdings in the indexor composite can change current yield calculations. This can lead to various ranges of results that may appear more or less favorable. Example: Stock A with 3% current dividend yield is sold. Stock B with 4% current dividend yield ispurchased. This would result in higher yielding portfolio but is not the result of “dividend growth”.

$1,000,000.00

$2,185,120.13

$3,927,729.62

$36,991.81

$70,270.55

$118,344.75

$25,000.00

$50,000.00

$75,000.00

$100,000.00

$125,000.00

$150,000.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

$3,500,000.00

$4,000,000.00

Berkshire Portfolio Value and Income w/ Dividends Reinvested

Berk Div Portfolio Value w/ Dividend Income Reinvested Annualized Dividend Income

$1,000,000.00

$1,881,564.69

$2,871,096.52

$36,991.81

$60,508.61

$86,507.79

$25,000.00

$50,000.00

$75,000.00

$100,000.00

$125,000.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

Berkshire Portfolio Value and Income w/ Dividends Paid Out

Berkshire Div Portfolio Value w/ Distribution of Dividend Income Annualized Dividend Income

Berkshire Dividend Growth StrategyPortfolio Value and Income w/ Dividends Distributed

Intended for illustrative purposes only. Income chart is based on the assumption $1,000,000 is invested in the Berkshire Dividend Growth and Income Strategy at the inception of the Berkshire Dividend Growth and Income composite.(6/30/2009) The $1,000,000 investment is adjusted monthly based on the stated monthly total returns for the given composite. This includes distribution of the dividend monthly based upon portfolio current yield at the end of each month.The monthly adjusted account values are then multiplied by the current yield of the respective composite. The resulting monthly income figures are then charted in the graph. Dividends are not guaranteed, and may be subject to change.Investing based on dividends alone may not be favorable as it does not include all material risks. There is no guarantee any stated (or implied) portfolio or performance objective mentioned by Berkshire can be met. Fees are not includedin the analysis and would lower values. Berkshire Dividend Growth and Income current yields are calculated in Bloomberg from a representative account only. Individual account yields and returns can vary. Calculation limitations:Changes of the underlying holdings in the index or composite can change current yield calculations. This can lead to various ranges of results that may appear more or less favorable. Example: Stock A with 3% current dividend yield issold. Stock B with 4% current dividend yield is purchased. This would result in higher yielding portfolio but is not the result of “dividend growth”.

Total Distribution of All Dividends Since Inception: $611,295.81

Berkshire Dividend Growth StrategyPerformance Update 6.30.2019

Returns are stated gross of fees. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Berkshire Asset Management, LLC claims compliance with the Global Investment Performance Standards (GIPS®). Composite and performance details can be found on the disclosure page of this presentation and a full composite can be obtained by the investor at any time per request. Investors should carefully consider investment objectives, risks, charges and expenses. 9

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

$3,500,000.00

$4,000,000.00

$4,500,000.00

Growth of $1,000,000 Investment

Berkshire Dividend Strategy S&P 500 Russell 1000 Value

Berkshire Dividend Growth StrategyPerformance Update 6.30.2019

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Berkshire Asset Management, LLC claims compliance with the Global Investment Performance Standards (GIPS®). Composite and performance details can be found on the disclosure page of this presentation and a full composite can be obtained by the investor at any time per request. Investors should carefully consider investment objectives, risks, charges and expenses. 10

Berkshire Dividend Strategy (Gross)* S&P 500 Return

Berkshire - S&P 500 Difference

Berkshire Dividend Strategy (Net)*

2009 Inception 5/ 3 1/ 2009 23.24% 22.50% 0.74% 22.74%

2010 11.62% 15.06% -3.45% 10.62%2011 10.04% 2.11% 7.93% 9.04%2012 14.18% 16.00% -1.82% 13.18%2013 31.26% 32.39% -1.13% 30.26%2014 13.88% 13.69% 0.19% 12.88%2015 2.27% 1.38% 0.89% 1.27%2016 15.29% 11.96% 3.33% 14.29%2017 16.95% 21.83% -4.88% 15.95%2018 -4.85% -4.38% -0.47% -5.85%

2019 YTD 15.87% 18.54% -2.67% 14.87%

Total Return 292.77% 293.88% -1.10% 257.58%Annualized 14.66% 14.69% -0.03% 13.96%

1 Year 12.59% 10.42% 2.18% 11.59%3 Years 10.82% 14.17% -3.36% 9.82%

5 Years 10.17% 10.71% -0.54% 9.17%7 Years 13.49% 13.98% -0.49% 12.49%

10 Years 14.66% 14.69% -0.03% 13.66%

Berkshire Dividend Growth StrategyYTD Performance by Security as of 6.30.2019

Results are based on underlying holdings of a representative composite account for the Berkshire Dividend Growth Strategy. Individual security results are obtain from Bloomberg Professional and Berkshire can not guarantee the accuracy of the information. Berkshire Asset Management, LLC claims compliance with the Global Investment Performance Standards (GIPS®). Composite and performance details can be found on the disclosure page of this presentation and a full composite can be obtained by the investor at any time per request. Individual accounts results may vary based on a variety of factors. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Investors should carefully consider investment objectives, risks, charges and expenses.

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41.42%37.69%

37.09%34.98%

34.54%33.63%

32.94%30.97%

28.13%27.24%

21.32%21.08%

19.89%18.88%18.70%

18.22%18.15%17.81%

17.30%16.94%

16.34%15.87%

15.21%14.73%

13.23%13.02%12.96%

12.39%10.60%

9.72%9.09%8.87%

7.73%4.63%

3.28%2.30%

-3.79%-19.07%

-40.00% -30.00% -20.00% -10.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00%Lockheed Martin

General MillsKinder Morgan

QualcommNorfolk Southern

HoneywellMicrosoft

Waste ManagementCisco Systems

WP CareyAT&T

Procter & GambleWalmart

PNC FinancialMcDonalds

Bank Of MontrealM&T Bank

Kimberly-ClarkAbbottRoche

JP Morgan ChaseBerkshire Dividend Strategy

ChubbExxon Mobil

BPEmerson Elec

PPLMerck

SchlumbergerJohnson & Johnson

Coca-ColaLeggett & Platt

NucorWells Fargo

IntelPfizer

AmgenAbbvie

Berkshire Dividend Growth StrategyYTD Attribution by S&P 500 Sector as of 6.30.2019

Results are based on underlying holdings of a representative composite account for the Berkshire Dividend Growth Strategy. Sector and cash position results are obtained and measured against the S&P 500 sector weightings from Bloomberg Professional and Berkshire can not guarantee the accuracy of the information. Berkshire Asset Management, LLC claims compliance with the Global Investment Performance Standards (GIPS®). Composite and performance details can be found on the disclosure page of this presentation and a full composite can be obtained by the investor at any time per request. Individual accounts results may vary based on a variety of factors. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

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-1.50% -1.00% -0.50% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50%

Industrials

Energy

Real Estate

Communication Services

Utilities

Financials

Materials

Consumer Staples

Consumer Discretionary

CASH Position

Information Technology

Health Care

Berkshire Dividend Growth StrategyInvestors Facing a Sea of Macro Confusion?

With markets hitting all time highs, an inverted yield curve and softer economic data, investors are seeking answers from investment professionals:

“Which way is the market going?”

“Is now the time to invest?”

“Should I raise cash and play it safe?”

“Are we going in to a recession?”

“Will Growth continue to outperform Value?”

What sectors look attractive?

Macro Outlook: “GOOD CHART BAD CHART?” We could easily come up with dozens of charts to show conflicting macro data out there today but here are a handful of “Good” and “Bad” charts to visualize the confusion investors are experiencing…

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Investors should carefully consider investment objectives, risks, charges and expenses. Additional information can be obtained from a financial professional and should be read carefully before investing. Dividends and yields represent past performance and there is no assurance they will continue to be paid in the future. Platform restrictions may apply. “Forward Looking” does not imply a level of skill, however the term is used to reference the way we approach our analysis of individual companies. 13

Investors Facing a Sea of Macro Confusion?“Good” Chart…

“Good” Chart – An ultra low rate environment remains supportive of risk assets

SOURCE: Bloomberg, accuracy of data is deemed reliable but not guaranteed and may be subject to change. References to particular securities are intended only to explain the rationale for the portfolio manager’s action with respect to such securities. Such references do not include all material information about such securities, including risks, and are not intended to be recommendations to take any action with respect to such securities. Past performance does not guarantee future results. 14

10 Yr Treasury Yield Hovering Around Historic Lows

S&P 500 Dividend Yield is Attractive in Comparison to Risk-Free Rates. Berkshire Portfolio approx. 3.01% yield

Investors Facing a Sea of Macro Confusion?“Bad” Chart…

“Bad” Chart – NY Fed probability of recession indicator has been moving higher


Probability of Recession in Next 12 Months


“Good” Chart – Multiples remain reasonable particularly in Value stocks


Russell Large Growth Price to Earnings Ratio

Russell Large Value Price to Earnings Ratio


“Bad” Chart – Auto delinquencies continue to move higher


60 Day Auto DelinquenciesAuto Loan Rates


“Good” Chart – The job market remains very strong


US Initial Jobless Claims


“Bad” Chart – Even with lower rates the housing market is very soft


US Housing Permits

Investors Facing a Sea of Macro Confusion?“Good” Chart or “Bad” Chart?

“Good” Chart or “Bad” Chart? – Growth is trading at the highest valuation levels ever in comparison to Value


Relative Price to Book: Russell Large Growth vs Russell Large Value

Investors Facing a Sea of Macro Confusion…How to Build the Investment Playbook?

Recession risk has grown but macro data points remain inconclusive, challenging investors who wish to make investment decisions based on “macro”

Risk/reward for dividend investors appears balanced

Advisor Action Steps? “Grind Out Returns” and Manage Expectations

Re-energize client conversations around meeting income goals and objectives vs. “which way is the market going”

Upgrade quality/lower risk profile Dividend income + dividend growth Rebalance expensive “Growth” stocks and buy “Value” Mentally prepare clients for modest market correction Prepare clients for lower equity market returns (5%-8%)

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Investors should carefully consider investment objectives, risks, charges and expenses. Additional information can be obtained from a financial professional and should be read carefully before investing. Dividends and yields represent past performance and there is no assurance they will continue to be paid in the future. Platform restrictions may apply. Image - http://larrycsonka.com/category/malesuada/ & https://www.dummies.com/sports/football/offense/running-plays-in-football/ 21

http://larrycsonka.com/category/malesuada/

https://www.dummies.com/sports/football/offense/running-plays-in-football/

Berkshire Dividend Growth StrategyWhy Berkshire Dividend Portfolio Now?

Companies with quality balance sheets and consistent cash flow

Roughly 3.01% current yield attractive dividend growth potential* (6.30.2019)

Average for companies announcing dividend increases: 11.10% (2018 simple average)

Favorable relative valuation - Forward P/E ratio approximately 15.35x (6.30.2019)

Berkshire downside capture 67% in Q4 2018

Sectors We Find Attractive:

Restructured energy companies poised for growth, higher margins – Attractive current dividends

Banks have excess capital position and continue to be poised for future dividend growth and buybacks

Technology and industrials benefit from information economy, internet of things, global growth

*Source: Bloomberg - Based on underlying holdings of a representative composite account for the Berkshire Dividend Growth Strategy. Berkshire can not guarantee the accuracy of the information. Individual accounts results may vary based on a variety of factors. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Investors should carefully consider investment objectives, risks, charges and expenses. 22

Berkshire Dividend Growth Strategy5G Technology to Unlock Future Growth?

Technology advancements continue to provide real secular positives to the U.S. economy.New 5G technology is taking a “one lane data highway” and turning it in to a “10 Lane Superhighway”

Companies like Qualcomm, AT&T & Intel may be poised to benefit

5G applications: Autonomous vehicles Real time shipping / smarter logistics Precision, sustainable and more efficient agriculture Flexible and more efficient manufacturing Real time medical and cumulative medical records and treatmenthttps://www.qualcomm.com/media/documents/files/5g-vision-use-cases.pdf

Economic benefit to global economies*: $12.3 trillion worth of goods and services enabled by 5G within 20 years This new infrastructure may support 22 million jobs $3.5 trillion in revenue generated globally for companies*Source: Qualcomm - https://www.qualcomm.com/invention/5g/economy

The views expressed reflect those of Berkshire Asset Management, LLC (Berkshire) as of the date of the commentary. Views are subject to change at any time based on market or other conditions, and Berkshire disclaims any responsibility to update such views if you are not a client. This presentation is not intended to be a forecast of future events, a guarantee of future results or investment advice. Because investment decisions are based on numerous factors, these views may not be relied upon as an indication of trading intent on behalf of any portfolio. The information contained herein has been prepared from sources believed to be reliable but is not guaranteed by Berkshire as to its accuracy or completeness. The Third Party Content is not created or endorsed by Berkshire nor any business offering products or services through it.

23

https://www.qualcomm.com/media/documents/files/5g-vision-use-cases.pdf

https://www.qualcomm.com/invention/5g/economy

Berkshire Dividend Growth StrategyWalmart Challenging Amazon?

Wal-Mart has been taking critical steps innovating their e-commerce business and the investment has been paying off with top line revenue growth.

Key priorities and acquisitions: Continued e-commerce growth Strong innovation in logistics Leverage brick and mortar presence to enhance e-commerce experience and distribution

Wal-Mart stores within 10 miles of 90% of the U.S. population Integrated Pickup

Shoppers use the outside drive-thru to pick up groceries, prescriptions and Walmart.com orders Pickup Discount Feature

Online shoppers can have items shipped to their local stores and enjoy a discount on those items Wal-Mart Associate Delivery

In test stores, Walmart asks associates to make customer deliveries off hours or on their way home. In Store pick up Tower


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Berkshire Dividend Growth StrategyIntel (INTC) – An Attractive Entry Point?

Intel (INTC) stock down in the 2nd quarter after issuing lower guidance. We believe this is offering an attractive entry point for long term investors.

Company Highlights:

Current Dividend Yield – 2.72%

Free cash flow margins are over 20%

Free cash flow covers the dividend over 2.5 times (room for continued dividend growth)

Proven management success in creating competitive/secular advantages in industry

Issues we keep our eyes on:

Cyclical issues in the chip space

Competition / defendable margins

Continued innovation


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Berkshire Dividend Growth StrategyIntel (INTC) – An Attractive Entry Point?

Intel’s free cash flow growth and dividends per share has shown consistent growth over time…


Berkshire Dividend Growth StrategyKinder Morgan – Restructured Energy Transportation?

Kinder Morgan (KMI) – A bear market for the energy sector has led to years of painful restructuring in the space… We believe a new and improved KMI has emerged.

Old business model: Sign transport contracts then… Increase leverage Expand capacity Pay “distributions” with borrowed funds (generating K-1 tax documents)

New business model: Sign transport contracts then… Maximize free cash flow Expand selectively Fund dividends and buybacks from excess cash flow (no K-1 tax document)

Company Highlights: 4.85% Current Dividend Yield – as of 6.30.2019 Company management indicating healthy dividend growth is an important objective Continued beneficiary of U.S. shale boom w/ less direct exposure to commodity price


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Berkshire Dividend Growth StrategyDisclosure Information

Berkshire Asset Management, LLC claims compliance with the Global Investment Performance Standards (GIPS®). Berkshire Asset Management is a fee-based, SEC registered advisory firm serving the portfolio

management needs of institutional and high-net worth clients. Registration with the SEC or any state securities authority does not imply a certain level of skill or training. The Dividend Growth Composite contains

portfolios invested in Berkshire’s Dividend Growth Strategy with an equity allocation target of 90% - 100%. The Dividend Growth Strategy’s primary objective is to generate a growing stream of equity income by

investing in a diversified portfolio of equities with stable, high, and growing dividends. The benchmark is the S&P 500 Index. The index returns are provided to represent the investment environment existing during the

time periods shown. For comparison purposes, the index is fully invested, does not include any trading costs, management fees, or other costs, and the reinvestment of dividends and other distributions is assumed. An

investor cannot invest directly in an index. Gross returns are presented before management and other fees but after all trading expenses. Net returns are calculated by deducting actual management fees from gross

returns. Returns reflect the reinvestment of dividends and other earnings. Valuations are computed and performance is reported in U.S. dollars. To receive a complete list of composite descriptions and/or a compliant

presentation, contact Jason Reilly, CFP® Tel: 570-825-2600 or [email protected]. Past performance does not guarantee future results. Platform restrictions may apply. Individual accounts will vary.

Definitions: The S & P 500 Index is a market capitalization weighted index of the largest 500 U.S. stocks. It is a market-value weighted index (stock price times # of shares outstanding), with each stock’s weight in the

index proportionate to its market value. The index is designed to measure changes in the economy and is representative of most major industries. You cannot invest directly in an index. Beta is a measure of volatility

vs. an index. Current yield is the mean estimated annual dividend amount based on current calendar year, divided by the current stock price. Dividend Payout ratio is the fraction of net income a firm pays to its

shareholders in dividends, in percentage. Forward Price Earnings Ratio (P/E) is the ratio of the price of a stock and the company's projected earnings per share. Upside/Downside capture ratios refer to a portfolios

performance as a percentage of either positive returns (upside) or negative returns (downside) vs. an index. Standard Deviation is a measure of total risk. Return on equity (ROE) measures profitability by dividing

dollars of profit by shareholders' equity. If represented in this presentation - Alpha, Beta and capture ratios are generally presented as calculated by Morningstar.

Risks: Past performance does not guarantee future results. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable

for an individual’s investment portfolio. Dividends are subject to change, are not guaranteed, and may be cut. Investing based on dividends alone may not be favorable as it does not include all material risks. There is

no guarantee any stated (or implied) portfolio or performance objective mentioned by Berkshire can be met. Berkshire’s equity style may focus its investments in certain sectors or industries, thereby increasing potential

volatility relative to other strategies or indices. The dividend strategy may include bundled services also known as a “wrap fee program”. Because there is typically a low turnover in the strategy, this may be more costly

for some investors. No one should assume that any information presented serves as the receipt of, or a substitute for, personalized individual advice from a qualified advisor or any other investment professional.

Market Commentary, Aggregate Holdings, Securities, Sectors, Portfolio Characteristics Mentioned: No statement made in this presentation shall construe investment advice. This presentation is for informational

purposes only. Views, comments or research mentioned is not intended to be a forecast of future events. The mention of any security or sector is not deemed as a recommendation to buy or sell. Any reference to any

security or sector is used to explain the portfolio manager’s rationale for portfolio decisions or philosophy. Research or financial statistics cited regarding securities or sectors do not contain all material information about

them. Any securities mentioned represent a partial list of holdings whereas Berkshire portfolios typically contain approximately 30-40 securities in percentage weightings ranging from 1-5%. A complete list of holdings

from a representative account is available upon request. Overall portfolio characteristics mentioned are from a representative account deemed representative of the strategy; data may be compiled from Bloomberg,

Baseline or Berkshire estimates. Individual holdings, performance and aggregate characteristics of actual portfolios may vary based on a variety of factors including market conditions, timing of client cash flows and

manager discretion. This presentation contains Berkshire opinions and use of Berkshire estimates which are subject to change at any time. Berkshire employees may have personal positions in any securities or sectors

mentioned. Charts, presentations or articles may be obtained from third parties and Berkshire does not guarantee their accuracy.

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berkshire dividend supplemental guide 6.30 · 46 public square i wilkes-barre, pa 18701 i...

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