 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| Berkshire Hathaway Taking Less Risks, Safer Investing or Economic Times? - July 13, 2009 |
The Wall Street Journal ran a special today on Berkshire Hathaway all about how Warren Buffett and
Berkshire Hathaway are taking less risks and being smarter in this economic time. The company's
insurance division spotlights the risk taking, bringing in less revenue on less premiums from catastrophe
insurance, such as when Buffett made millions off of Florida in 2008 because they did not have a
hurricane that was catastrophic.
Yet, the company only brought in a little under a billion last year in these premiums, while nearly $2 billion
in 2006. Not only is Berkshire making "safer" risks, but companies are cutting back on insurance as they
try to cut costs as revenue weakens. This means less claims and less revenue.
Buffett believes that he could bring in more of the risk taking insurance premiums, but he would be taking
risks for prices he is not comfortable, and until that trend changes, the company will continue on this path.
The situation, though, does beg the question is that is Buffett being smarter or is the company just not
getting the offers.
The Oxen Group is not affiliated with Berkshire Hathaway, Warren Buffett, or any of their affiliates.
Berkshire Hathaway are taking less risks and being smarter in this economic time. The company's
insurance division spotlights the risk taking, bringing in less revenue on less premiums from catastrophe
insurance, such as when Buffett made millions off of Florida in 2008 because they did not have a
hurricane that was catastrophic.
Yet, the company only brought in a little under a billion last year in these premiums, while nearly $2 billion
in 2006. Not only is Berkshire making "safer" risks, but companies are cutting back on insurance as they
try to cut costs as revenue weakens. This means less claims and less revenue.
Buffett believes that he could bring in more of the risk taking insurance premiums, but he would be taking
risks for prices he is not comfortable, and until that trend changes, the company will continue on this path.
The situation, though, does beg the question is that is Buffett being smarter or is the company just not
getting the offers.
The Oxen Group is not affiliated with Berkshire Hathaway, Warren Buffett, or any of their affiliates.
|
HTML Comment Box is loading comments...
| Comments from The Oxen Group Readers Want to make a comment on the story above. Place your name and comment in the box below. Please remember that this area is for discussing and conversing with writers and other readers about finance issues. Do not use any foul or inappropriate language. Any comment deemed inappropriate will be automatically removed, and offenders will be tracked. |
| Sign up for The Oxen Group's free Daily Digest, featuring stock picks, financial articles and more. SIGN UP NOW AND RECEIVE THE OXEN GROUP'S FREE REPORT: Identifying the 5 Keys for a Perfect Fundamental Day Trade (Preview) |