EP 301. Capital Allocation, 1967-1969: Buffett Buys National Indemnity -- and a Primer on Insurance Companies
Focused Compounding
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How Do You Judge an Insurance Company?
There's a temptation to pay out too much money and dividends early on. Most banks pay regular dividends that people like if growth is very predictable. So insurers probably would benefit more from, like, paying out special dividens and things like that. How buffetd is, he built up capital at times, and then he would make a really big bet,. He would let things sit idle, andthen he'd do really big deals. That's always hard for people to see.
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