Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) is investing in the vicinity of e book benefit, which Warren Buffett (Trades, Portfolio) thinks tremendously underestimates good current market values. Berkshire is the 800-pound gorilla in insurance policy. Marketplace individuals perceive Covid-19 claims may perhaps bankrupt insurers. There will be significant expenses and hits to portfolio providers. But, most insurance policy guidelines exclude pandemics and premiums are mounting speedier than challenges. In the meantime, Berkshire carries on to commit no-price tag insurance policy “float” in confirmed price tag-furthermore utilities and other crucial enterprises. This will make perception when the Federal Reserve pays .twenty five% and European Central Bank charges .50% to keep bank income.
From Bruce Berkowitz (Trades, Portfolio)’s Fairholme Fund (Trades, Portfolio) 2020 semiannual shareholder letter.
About the author:
I am the editorial director at GuruFocus. I have a BA in journalism and a MA in mass communications from Texas Tech College. I have lived in Texas most of my lifestyle, but also have roots in New Mexico and Colorado. Follow me on Twitter! @gurusydneerg