Subject: Re: Back of the envelope
I agree with your observations.
I do reduce my cash by $30 BB and I also include Rails cash. Net is about $25 BB.
I also use long term average underwriting profit as a percentage of premiums. Currently around 3.2%.
My Groves are:
1) Operating Earnings at 15X - $190
2 - Equities - $104
3 - Partially Owned Businesses - $19
4 - Cash & Equivalents - $146
5 - Underwriting gains - $16
Total - $475.
Let me know if you get any differences for any of the Groves. Then we can compare?