Berkshire, Fairfax May Benefit By Buying XL

[Parsad]

An FBR analyst is suggesting that Berkshire and/or Fairfax should buy XL Capital and improve the investment returns.  I think it is pure speculation, but it would be interesting to see Berkshire and Fairfax do a joint deal, not unlike Berkadia, and work together on XL. 

 

I think that would be one of the highlights of Prem's career to finally do a substantial deal with Berkshire.  He's done smaller ones where they've shared purchases of preferred shares or notes, but not something like a Berkadia.  I would love to see it!  Cheers!

 

http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/09/06/bloomberg1376-L8DP831A74E901-6V0OLE3RRUBABT20QPTJ1M2BC8.DTL

[Guest Bronco]

Is XL bermuda based? I thought Buffett's opinion on the Bermudas was that he thought the 4% premium tax was way too low?  Any conflict of interest here?