Warren and the Horrible Business of Long Term Care Insurance

[BargainValueHunter]

http://brontecapital.blogspot.com/2012/05/thoughts-on-berkshire-meeting-and.html

 

Long term care insurance is the worst business I have ever seen.

 

Warren of course never told us that - but somehow he wound up re-insuring it.

 

I guess he did not want to explain his stupidity.

 

Very harsh but interesting nonetheless.

[Rabbitisrich]

Is Hempton's description of the sales team (commissioned, older, conversational) a valid depiction? GNW pushes long-term care insurance through the AARP network. Can you launch an affinity sales strategy to 40+ MM people?

[ragnarisapirate]

http://brontecapital.blogspot.com/2012/05/thoughts-on-berkshire-meeting-and.html

 

Long term care insurance is the worst business I have ever seen.

 

Warren of course never told us that - but somehow he wound up re-insuring it.

 

I guess he did not want to explain his stupidity.

 

Very harsh but interesting nonetheless.

 

Harsh, but right...

[prevalou]

The argument about BNSF is inaccurate. In 2011, BNSF invests 1.8 B$ more than depreciation. If pretax profit is 5 B$, then pretax free cash flow is 3.2 B$ and after tax free cash flow is 2 B$. So this amount can be distributed to pay claims.