buffett's borrowings

Reader comment on: Buffett's Principles

Submitted by Ford Lacy (United States), Feb 3, 2012 20:27

the float that berkshire uses is also borrowed money, it is the timing difference between premiums paid in and claims paid out. this float which can be an interest free loan is very valuable to berkshire hathaway. if berkshire spends the float improperly, it is still liable for the claims.theoretically, all insurance companies benefit from float but berkshire is better at it than most.


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Title By Date
No surprises here [13 words]Dan CalabriaFeb 4, 2012 10:21
⇒ buffett's borrowings [64 words]Ford LacyFeb 3, 2012 20:27

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