On 1/9, I added to our Berkshire Hathaway position. I picked up BRK-B for about $441 a share. Markets were reportedly selling off in large part due to a strong jobs report, which traders translated into one more reason for fewer rate cuts. So good news was bad news. Also, insurers were getting hit a bit due to exposure to California fires. Estimates for insured losses exceed 20 billion at this point. The interesting thing about that is Berkshire could pay the entire bill for all insured losses from these fires without missing a beat. That’s the beauty of a company with a fortress balance sheet and diversified income streams. What’s more beautiful is that Berkshire’s exposure will only be a fraction of the total insured losses, and of course, it will be paid out over time, not all at once.
With Love,
P. Gustav Mueller, author of The Present