27. The pink sheets are one of the last Wild West markets in, well, the West. The SEC’s new proposed rule may make trading many of the stocks there much more difficult in the next few months. Looking forward to major dislocations, if so. Do the homework now to be ready.
Well Berkshire has much higher quality insurers than average, with combined ratios that are usually quite a bit better than the industry. GEICO in particular seems competitively advantaged and was the “disrupter” of its day by replacing agents with direct response marketing.
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It also owns substantial assets outside of the insurers that may give it more creative flexibility in the types of and size of risks they insure. In that way, the whole may be worth more than the sum of the parts. But that last part is mostly conjecture on my end.
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Oh, I meant your point about regulation. How does Buffett allocate more to equities than other insurers? Is reinsurance less regulated?
End of conversation
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