william the wie
Gold Member
- Nov 18, 2009
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The state mandate ruling is recent but the insurance ruling that permits the structure of Berkshire Hathaway, which, according to Warren Buffett, is about 90-95% insurance based, was made possible by a post-WWII 1940s Supreme Court ruling. Not being a lawyer, especially one who deals with the minutiae of insurance law, I thought I would throw this possible bone to y'all.
Berkshire Hathaway because of Nebraska insurance law can get away with stuff that insurance companies operating in other states cannot, such as:
Direct investment of reserves: Taking companies like Dairy Queen private, buying Alberta oil sands positions, using premiums as margin in stock purchases and a whole bunch of other things that in any other state would be a criminal offense.
Using insurance policies and stock prices to conceal the assets of the Buffett, Munger and (Benjamin) Graham clans. Even though internal cash flow at BK has sucked for the last 5 years, share sales are not big, which suggests that fully "depreciated" assets are worth much more than remainder value.
Since I like the Ocare forum throwing out this idea might suggest a way of generating law suit fees for you and create more interesting discussions for me. Peace.
Berkshire Hathaway because of Nebraska insurance law can get away with stuff that insurance companies operating in other states cannot, such as:
Direct investment of reserves: Taking companies like Dairy Queen private, buying Alberta oil sands positions, using premiums as margin in stock purchases and a whole bunch of other things that in any other state would be a criminal offense.
Using insurance policies and stock prices to conceal the assets of the Buffett, Munger and (Benjamin) Graham clans. Even though internal cash flow at BK has sucked for the last 5 years, share sales are not big, which suggests that fully "depreciated" assets are worth much more than remainder value.
Since I like the Ocare forum throwing out this idea might suggest a way of generating law suit fees for you and create more interesting discussions for me. Peace.
