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longterminvestor

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  • Birthday 06/25/1982

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  1. Tax implications of S&P index ETF, any ETF really, are an important consideration. If you buy and hold an ETF for 10yrs, you pay tax on annual dividend and capital gain tax on the ultimate sale of ETF 10yrs later. However, when the S&P re-shuffles its allocations, adds new companies, removes companies - the ETF re-allocates the index fund and that is a tax free transaction. For example, if Apple's allocation in the S&P is 10%, then there is a re-shuffle, Apple's allocation is reduced to 8%, the holder of the ETF does not pay on the gain of Apple inside the ETF. I am probably missing some pieces but this is my understanding. The structural tax advantage of ETF is pretty strong. Especially vs a Mutual Fund that pays taxes on a shuffle of the allocation. To that point, Berkshire's tax implications are better compared to a mutual fund rather than an index ETF. I understand returns can be compared but the tax implications are different all together.
  2. iSavings bonds going to 6.47% after todays CPI Print.
  3. Here is data for insurance companies exposed in Florida. This does not include Auto and its state wide. I don't know if its possible to pull data by county - maybe total exposure by county but doubt data is available by carrier by county (for competitive reasons) According to this data, in Florida there is $2.9Trillion of exposure for wind. Again, does not include auto/marine and other lines. https://floir.com/tools-and-data/residential-market-share-reports FL - STATEWIDE - BY POLICY TYPE - INCLUDING WIND.pdf FL STATEWIDE - PERSONAL & COMMERCIAL INSURANCE RANKING.pdf
  4. Auto will be a portion of loss because auto policies include flooding, homeowners does not cover flood. Flood is backed by US Gov through National Flood Program. Some private players have started to underwrite flood - mostly Lloyds and have seen some AIG. GEICO does not write homeowners on GEICO paper, they act as agent - similar model to USAA in Florida. BoatUS is a Berkshire company and they write boats - will be some claim activity in recreational marine as well. GEICO also writes boats on GEICO paper.
  5. BRK.A - Berkshire Hathaway Inc Class A Stock Analysis & Rating - NYSE _ Morningstar.pdfMorningstar commentary. Gregg needs to update his picture.
  6. Saw this and don't know if it was previously posted on cobf. Video uploaded in 2020. cheers!
  7. Just got off phone with trading partner who told me they placed a $5M Primary with Berkshire (50% participation), Lloyds (40% participation), and another market (10% participation) for $900K Premium (17.5% total commission for retail/wholesale brokers). So to break that down for Berkshire's P&L/Balance Sheet - thats $2.5M of "all risk property" exposure on Berkshire for $371.25K premium for a very short tail risk. I do not pretend to know what the exact amount Berkshire actual places on liability side of the balance sheet however max exposure is $2.5M - unless they bought facultative reinsurance (FAC) to reduce the risk from a third party. There would be an expense attached to FAC reducing the amount of premium however highly doubt at these rates Berkshire is buying FAC. 3 years ago, the entire placement ($60M TIV) traded for $200K premium. There's probably more to this story (claims, ect) but that is a extracting a pound of flesh for sure. This is a risk in Tri-County Florida. Crazy times. At these rates, I am VERY surprised why I am not seeing them more and more on these placements. What is keeping them (and others) on the sidelines?
  8. I am a retail agent in FL. Market is really tough for Florida Property/CAT Wind. Coastal Condo placement I just heard went from $400K premium to $1.3M Premium and broker still hasn't placed the top layers for the 5/31 renewal date. I have personally seen/placed accounts with 100%-150% premium increases. Counterparties comparing this market to buying Terrorism post 9/11. Have not seen any Berkshire paper on a retail placement for large deals, they last quoted in 2013-2014 but pulled out because market was getting too soft. Excerpt from article linked below. I am not a reinsurance expert, but the "one reinsurance company" has to be GenRe and clearly they are getting their price. For context, I do know these reinsurance placements are largely on homeowners business and some residential condos. “Market reports are that most domestic carriers have placed less than 80% of their required external placements prior to the Memorial Day weekend, and many far less than that. In one case, as of early Friday: zero. The current shortfall is well over $10B of unplaced limit. Their brokers are hard pressed for solutions,” says Stonybrook, a specialist strategic advisory and investment banking firm focused exclusively on the insurance and reinsurance industry. The firm goes on to note that it’s aware of at least one large reinsurance company and one large catastrophe fund that are actively quoting new limits, albeit at unacceptable terms. https://www.reinsurancene.ws/well-over-10bn-of-unplaced-limit-at-june-1-further-downgrades-expected-stonybrook/
  9. Mr. Buffett addresses this question specifically in below videos. Mr. Buffett has also intentionally "lodged" the operating businesses inside the insurance companies so spinning off would have additional hurdles not mentioned here.
  10. new Bloomstran Podcast: https://podcasts.apple.com/us/podcast/410-chris-bloomstran-semper-augustus-buffett-berkshire/id1128955736?i=1000558885829 on youtube:
  11. Charlie Rose interviews Mr. Buffett. came out today. https://charlierose.com/videos/31221
  12. As a broker, we write cargo policies with "world wide coverage" - some policies have war/confiscation exclusions and some do not. I have received some mid term endorsements excluding Ukraine and war/confiscation recently. None of these accounts have direct exposure to Ukraine - they are US distributors who source product from Asia. Berkshire is not the primary risk bearer on these cargo deals (unknown if they participate on a reinsurance basis) however trying to provide some color on this question. Unknown on the carriers who underwrite 1st party multi-peril (property insurance) in Ukraine - not my market.
  13. In other random news, Yahoo Finance got the boot! CNBC is now hosting the live feed via internet. Wonder what caused that change. Daily Journal had Becky doing questions with Yahoo doing the feed. Just an interesting note, obviously no financial implication to the business.
  14. I understand the thought/sentiment here and find it curious that Mr. Buffett is ruthless when buying assets he finds at a discount however he has mixed feelings when it comes to buying Berkshire. Still looking for the lesson - there's usually a lesson to learn with Mr. Buffett's actions. $27B in buy backs for 2021 and $24B in 2020. For context, largest deal in Berkshire history was Precision Cast for $37B (admittedly overpaid) followed Apple at $36B - purchased over 3 years and lastly BNSF - $34B (debatable to come up with ultimate cost - partial ownership at acquisition and paid for with cash+stock). Energy Business is another place Berkshire is stuffing capital. Was hoping for more buybacks but I'll take it.
  15. Bloomstran says letter is going to clients now and will be posted to "soon".
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