Berkshire Beyond Buffett: Insurance Notes

Berkshire Beyond Buffett: Insurance Notes by Steven Towns

Larry Cunningham is one of the most respected authors who has written about Warren Buffett and Berkshire Hathaway. His Berkshire Beyond Buffett: The Enduring Value of Values is proving to be an informative read thus far — last week I posted some notes and takeaways from the first few chapters. This time I’m sharing more of the same from the remainder of chapter 3 as well as chapter 4, which is the first chapter of the second part of the book.

  • Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) directors serve w/o dir liability insurance that other boards take for granted. See book: Berkshire Beyond Buffett
  • Another helpful info table in ch. 3 of ‘s Berkshire Beyond Buffett. Ch 2 full of data on subs. Ch 3 has “B.E.R.K.S.H.I.R.E” acrostic
  • Agreed: “The simpler the [corporate] values are to convey, the more durable they tend to be.” – “Berkshire Beyond Buffett”
  • Reading, ~live-twting Berksire Beyond Buffett by . Just started pt II. Naturally, concept inspired by in 1936.
  • Berkshire: $46M for 1/2 of GEICO accum 1976-80. Paid $2.3B for rest in ’95. Negative cost of cap on float. Econ of scale: moat  
  • Berkshire Hathaway’s National Indemnity Company (NICO) bedrock principle: “There is no such thing as a bad risk; there are only bad rates.”
  • Berkshire’s NICO rejects > 98% of business offered to it. (Berkshire Beyond Buffett ch. 3: Budget-conscious and Earnest)
  • Buffett’s “too hard pile”. Ajit Jain underwriter par excellence: […] (he’s equipped) w the realism to forget abt those he can’t evaluate.
  • In 2004 Buffett said had Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) not acquired NICO in ’67 ($8.6M), it would be lucky to be worth 1/2 its value.
  • NICO: sacrosanct promises; fin. fortress; backstop any risk at right price; customers will’gly pay for such earnestness -BRK Beyond Buffett

You might also enjoy another recent post (click the first hyperlink below).

Susan Decker on the Magic of Berkshire Hathaway’s Returns

Berkshire Beyond Buffett



About the Author

Steven Towns
Steven Towns is the author of Investing in Japan: There is no stock market as undervalued and as misunderstood as Japan (March 2012). Investing in Japan, both a timely and timeless book, fills the void of English-language information about Japanese stocks, and contrary to popular opinion, the author believes that Japan’s future is far from bleak, and the vast universe of undervalued Japanese stocks represents significant opportunity.