What Warren Buffett knows that you don’t – Part 3

Warren Buffett’s smartest investment is not in any manufacturing or service company, but in several insurance businesses

July 05, 2022 by Newsclick

Warren Buffett’s smartest investment is not in any manufacturing or service company, but in several insurance businesses. Although the business itself doesn’t generate much profits, it gives Buffett access to a huge insurance ‘float’ which is stable over a long period of time. It is practically a giant loan for which Buffett pays nothing. Buffett’s insurance float strategy shows that the only way to make money in Capitalism is if you already have a lot of money.