Good posts on this subject. I do think Berkshire borrowed more, and for longer durations, than it otherwise would have.

It is important to remember that while most other businesses and individuals have lost access to the very low cost capital that was available during that interest rate environment, Berkshire has continuing access to leverage through float growth at near zero, often negative, cost.

What did Berkshire do when interest rates perked up off the floor? They bought Alleghany and a nice chunk of high quality, negative cost, growing float.

With the 10 year treasury at 3.48% and the 30 year at 3.65%, the options for Berkshire to partially fund an acquisition with new bonds are still pretty attractive if something comes along.

I don't think Warren thought Berkshire stock was cheap enough to do some aggressive leveraged recap and that really isn't how he's run the firm so not a great example to set right before you sign off. But sure, on paper and with hindsight it looks profitable if you ignore the lasting cultural damage.

Berkshire Hathaway FAQ

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