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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: Dagdom   😊 😞
Number: of 21944 
Subject: Re: considering coat tailing OXY
Date: 10/07/24 3:39 PM
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Just to offer my perspective, I think another way to try to understand the coke investment and its favored status at Berkshire is to look at what is funding it - float.

Munger once said something along the lines of “buying stock x as a private investor is not the same as buying it financed by zero per cent cost float”.

I take that to mean some combination of lower hurdle rates and less appetite for broader distribution of possible outcomes even if central expectation is higher.

If the insurance business wasn’t so over capitalized that same money would probably be invested in bonds.
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This community has written 21,448 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 57 recs · 2023
Summary of 2Q 2026 · 54 recs · 2026
3Q Summary · 53 recs · 2024
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