Warren Buffett On The Similarities Of Underwriting And Investing

0
Warren Buffett On The Similarities Of Underwriting And Investing
By Mark Hirschey (Work of Mark Hirschey) [<a href="http://creativecommons.org/licenses/by-sa/2.0">CC BY-SA 2.0</a>], <a href="https://commons.wikimedia.org/wiki/File%3AWarren_Buffett_KU_Visit.jpg">via Wikimedia Commons</a>

Warren Buffett On The Similarities Of Underwriting And Investing by Greg Speicher, Ideas for Intelligent Investing

Get The Full Warren Buffett Series in PDF

Get the entire 10-part series on Warren Buffett in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

In 1999 Warren Buffett wrote, “In Ajit, we have an underwriter equipped with the intelligence to properly rate most risks; the realism to forget about those he can’t evaluate; the courage to write huge policies when the premium is appropriate; and the discipline to reject even the smallest risk when the premium is inadequate. It is rare to find a person possessing any one of these talents. For one person to have them all is remarkable.”

It is interesting that these qualities parallel those required to be a successful investor.

A successful investor must:

David Einhorn: This NJ Deli With One Location And Little Revenue Is Trading At $100M+ Valuation

david einhorn, reading, valuewalk, internet, investment research, Greenlight Capital, hedge funds, Greenlight Masters, famous hedge fund owners, big value investors, websites, books, reading financials, investment analysis, shortselling, investment conferences, shorting, short biasIn his first-quarter letter to investors of Greenlight Capital, David Einhorn lashed out at regulators. He claimed that the market is "fractured and possibly in the process of breaking completely." Q1 2021 hedge fund letters, conferences and more Einhorn claimed that many market participants and policymakers have effectively succeeded in "defunding the regulators." He pointed Read More


  1. properly assess the future prospects of a business;
  2. quickly pass on those businesses he cannot understand;
  3. have the courage to make a large bet when the odds are in his favor;
  4. not invest if the margin of safety is too small.

You can infer from Buffett’s comments that finding (or becoming) an investor with these traits is difficult.

No posts to display