Berkshire Hathaway(NYSE: BRK.A) , run by investing legends Warren Buffett and Charlie Munger, has been a magical wealth-creating machine for 35 years. Since 1965, Berkshire's per-share book value has increased from $19 to $37,987, and a person investing $10,000 in Berkshire shares in 1965 would have had over $51 million by the end of 1998. Berkshire Hathaway lost a little of that magic in 1999. The company finished with its lowest annual increase in book value ever, and by March its share price had dropped almost 50% from its 1998 high. For the first time, Buffett has come under fire from armchair investors. Has the Sage of Omaha lost his touch? Will his stubborn refusal to buy technology stocks doom the company to future underperformance versus the market indexes, which are increasingly dominated by technology stocks? Or can Berkshire regain the magic in 2000? In this report, The Motley Fool reviews the dynamics of the insurance industry, examines Buffett's unmatched record as a capital allocator, and takes an in-depth look at one of the market's most complex and interesting companies.