Berkshire $73 billion of free money to invest

from Warren Buffett – Letter To Shareholders 2012 on Rap Genius


Money for free? He’s talking about “float”, which he explains later. It’s basically the money an insurance company gets from premiums and doesn’t have to pay out until later. Insurance companies actually make most of their income from investing float, and since BH owns a bunch of insurance companies, it gets a lot of float to play with.

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