Brilliant article as always. Do you think that both Warren and Charlie refrained from leverage after the Guerin incident? Seems like both loved leverage initially and used unorthodox leverage via float and subsidiary company's cash ever after.
Besides, you inserted a wonderful cliffhanger about cheap Japanese equities! Looking forward to an article of yours about these! And having UK-based BATS as a benchmark for low multiples.
Thanks. Charlie invested in Real Estate before Berkshire, but it seems they both stopped using direct leverage when they bought National Indemnity Company in 1967. As you said, they used the float of the insurance company as leverage. I don't know the leverage on the insurance company in the early stages, but compared to other insurers, Berkshire's leverage is very low. (I read it was about 1.5x whereas other companies often use 4x..but don't quote me on that).
I am currently working on several articles, including stoicism in investing, a backtest of Japanese Net-Nets and the Aquiers multiple and several deep dives on companies, but I am quite busy - not sure when these will come out.
Brilliant article as always. Do you think that both Warren and Charlie refrained from leverage after the Guerin incident? Seems like both loved leverage initially and used unorthodox leverage via float and subsidiary company's cash ever after.
Besides, you inserted a wonderful cliffhanger about cheap Japanese equities! Looking forward to an article of yours about these! And having UK-based BATS as a benchmark for low multiples.
Thanks. Charlie invested in Real Estate before Berkshire, but it seems they both stopped using direct leverage when they bought National Indemnity Company in 1967. As you said, they used the float of the insurance company as leverage. I don't know the leverage on the insurance company in the early stages, but compared to other insurers, Berkshire's leverage is very low. (I read it was about 1.5x whereas other companies often use 4x..but don't quote me on that).
I am currently working on several articles, including stoicism in investing, a backtest of Japanese Net-Nets and the Aquiers multiple and several deep dives on companies, but I am quite busy - not sure when these will come out.