Yup, insurance float is the secret sauce. That's how the insurance companies make money. And if they consistently have underwriting profits, that means they're being paid to hold the insurance premium at little to no cost until they're paid out as insurance claims. Then they can invest the money in bonds, fixed-income securities, stocks, US Treasurys, etc. to generate investment income.
I've admired Bershire for the past 2 decades but have never owned. But as I approach retirement it seems the smart place to start moving my assets having owned GOOG, AMZN and many other tech stocks for the long hall. At some point it makes sense to start diversifying from volatile growth to stable growth. It's time for me to start looking for stable returns as I don't have another decade before I will be looking for income streams instead of growth. Thanks for your video. Very well done.
Great video my friend - I’ve been watching Berkshire for away as well - I’m looking to add if it dips decently to provide a margin of safety for my position 😂
I no longer have any leverage. All my registered accounts for retirement are in Berkshire Hathaway. I have difficulty buying and holding other stuff. I must be the most risk averse guy out there. Money in the bank, housing, GIC and bonds are, in my mind, much riskier than holding stocks of BRK B.
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Like your content man, good level of detail. Keep it up , I’m certain this channel will grow over the longterm.
Did not knew about the insurance float before this video. Thanks for sharing!
Yup, insurance float is the secret sauce. That's how the insurance companies make money. And if they consistently have underwriting profits, that means they're being paid to hold the insurance premium at little to no cost until they're paid out as insurance claims. Then they can invest the money in bonds, fixed-income securities, stocks, US Treasurys, etc. to generate investment income.
I've admired Bershire for the past 2 decades but have never owned. But as I approach retirement it seems the smart place to start moving my assets having owned GOOG, AMZN and many other tech stocks for the long hall. At some point it makes sense to start diversifying from volatile growth to stable growth. It's time for me to start looking for stable returns as I don't have another decade before I will be looking for income streams instead of growth.
Thanks for your video. Very well done.
Great video my friend - I’ve been watching Berkshire for away as well - I’m looking to add if it dips decently to provide a margin of safety for my position 😂
No problem, I did sell Berkshire earlier this year and made a small gain from it, so I'll wait for a bigger dip before buying it back again:)
I no longer have any leverage. All my registered accounts for retirement are in Berkshire Hathaway. I have difficulty buying and holding other stuff. I must be the most risk averse guy out there. Money in the bank, housing, GIC and bonds are, in my mind, much riskier than holding stocks of BRK B.
Exactly correct and it is the difference between the face value and the buying power.
Thank you
Great analysis, Victor. I’ve owned the business for years, would never sell, and do some buying when it hits 1.2x P/B. Good luck, everyone.
Roughly what price would that be for brk.b. Sorry I am not good at analysing
Hi,
thanks for you Analysis.
Did you already buy or still waiting?
I bought other stocks instead. Still waiting for it to drop more first.
A new video !
Victor!!!!
May i ask whats yout annual return since implementing this solid investing strategy? I want to get started
Looking into the future: autonomous driving will disrupt Berkshire insurance and railway business....
That’s one possibility, but not railway business. Railway is usually the cheapest way to ship products across the US.
self driving cars are decades away. Please read about the issues the city of San Francisco is having with the cars.
Snowball company