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Stocks B / Berkshire Hathaway
|Subject: Re: Two Column/Rationalwalk||Date: 10/10/2012 8:04 AM|
|Author: mungofitch||Number: 194797 of 211925|
Even so, $1.5 bn pre-tax I think is a closer to the truth than zero (Buffett's implicit number)....
For anybody interested in the cost of float trend
Conservative average cost of float 1999-2011 -0.57% (underwriting profit +0.57%)
Optimistic average cost of float 2003-2011 -3.48% (underwriting profit +3.48%)
A rather arbitrary geometric mean of those two figures is -1.41% which gives a nice
round billion a year in pretax underwriting profit based on the current amount of float.
That's what I pencil in when I do cyclical adjustments.
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