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. 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.