NOTES TO FINANCIAL STATEMENTS
June 30, 2000 (unaudited)
The Focus Fund and Technology Fund (the "Funds") are each a non-diversified series of The Berkshire Funds
(formerly Berkshire Capital Investment Trust) (the "Trust"), an open-end management investment company
registered under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust was organized
as a Delaware business trust on November 25, 1996. The Focus Fund commenced operations on July 1, 1997.
The Technology Fund commenced operations on December 29, 1999. Each Fund's investment objective is to
seek long-term capital appreciation through investments in equity securities.
2. Significant Accounting Policies
The following is a summary of the Funds' significant accounting policies:
Securities valuation - Each Fund's portfolio securities are valued as of the close of the regular session of trading
on the New York Stock Exchange (the "NYSE"), normally 4:00 p.m., Eastern time. Securities which are traded
on stock exchanges or are quoted by NASDAQ are valued at the last reported sale price as of the close of the
regular session of trading on the NYSE, or, if not traded, at the most recent bid price. Securities which are traded
in the over-the-counter market, and which are not quoted by NASDAQ, are valued at the most recent bid price,
as obtained from one or more of the major market makers for such securities. Securities for which market
quotations are not readily available are valued at their fair value as determined in good faith in accordance with
consistently applied procedures established by and under the general supervision of the Board of Trustees.
Share valuation - The net asset value per share of each Fund is calculated daily by dividing the total value of the
Fund's assets, less liabilities, by the number of shares outstanding, rounded to the nearest cent. The offering and
redemption price per share is equal to the net asset value per share.
Investment income - Dividend income is recorded on