Berkshire Hathaway Annual Shareholder Meetings (since 1994) cover image

2012-Afternoon Session-BRK Annual Shareholders Meeting

Berkshire Hathaway Annual Shareholder Meetings (since 1994)

00:00

The Economic Value of Geico Insurance

I was wondering if you could just talk to us a little bit about How the different ways you can look at valuing the different Insurance businesses that would be a huge help. The economic value comes from the ability to Utilize float if obtained at a bargain rate now of interest rates for seven or eight percent and float even costed 2% to obtain and still would be very valuable. I Think it's quite reasonable to expect a fairly substantial underwriting profit on average for as far as the eye can see, coupled with growing float because float grows with the premium volume. It does relate in the end to a combination of growing and large float and Extremely low-cost float.

Transcript
Play full episode

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner
Get the app