Subject: Re: Numbers
Buffett has repeatedly said that insurance float is better than equity capital — if it’s cost free or profitable. Which it is now and has been for decades.

“Our float is money we hold but don’t own.”

And more importantly:

“If float costs us nothing — or less than nothing — it is better than equity”.

I’ve ballparked float value at 1.3X equity. I’ve seen estimates at 1.5x. Charlie seemed comfortable with 1.3 and said it’s rationally obviously 1.1x or higher.

The secret sauce of Berkshire has always been—its balance sheet carries huge liabilities more valuable than assets. Counterintuitive but true.

But you MUST HAVE supreme Underwriting discipline for that to be.. Which we have. And …must continue.