That’s true, that’s what was said 17 years ago. It was a long , painful time turning this around.

More recently, Buffett has expressed far more positive sentiments on Gen Re.

Several years after those remarks— Buffett remarked in the 2017 annual report “After some early problems, Gen Re has become a fine insurance operation that we prize”.

Subsequent comments over the past 9 years are consistent with Warren’s 2017 AR comments. Generally quite positive. Gen Re is a profitable, prized operation adding substantial profits and float to our company. That’s not bad.

Here’s what I vividly recall thinking back then: I believe that if Warren was merely a shareholder in Berkshire, he would have strongly considered selling all his Berkshire stock at that time. It was outrageously overpriced. So he discovered a way to effectively sell over 20% of Berkshire tax free…a swap of his overpriced currency for a business he really liked in his prime industry of choice. He didn’t feel bad swapping out that currency— Berkshire was never that overpriced before then—and never even close to that valuation since. It’s important one understands that perspective. That’s why stock swaps have not been on the table since. But…run this thing up to $800 a share very soon and you might be surprised…

Hindsight is 20-20. He probably wouldn’t do it again. But he made that decision with sound thinking and a bloated currency . A less than ideal result…and it worked out ok.