Hurricane damage cuts two ways, it seems. Yes, the prospect of Berkshire paying out damage claims is adverse to the company and our equity valuation in the short term. Yes, the paying out of claims is usually good for Berkshire in the long run and thus also good for our equity valuation as the payment of these claims leads to higher future premiums and sometimes less competition because of the weaker players being hurt more than Berkshire by hurricane events. In the twenty-plus years we have held Berkshire shares this has been the usual oft repeated cycle.

Our friends with homes on NC and SC beaches have seen significant insurance hikes in the past two years. It appears the hikes are having some effect on beach property prices as they soared during the Covid years and now seem to be receding slightly. As to be expected, property prices are influenced by many factors including location, availability, interest rates, qualified prospective buyers, the fear/greed level of sellers and so forth. Still, the comments I am hearing are giving some evidence the significant increases in insurance costs are pushing into the fear zone for our friends on fixed income (retired) who currently own beach property.

To repeat, adverse storm events are slightly adverse in the short term and usually quite profitable in the long term for Berkshire.

Uwharrie