Float Nugget from AR

hadn’t thought about this:

that is why he is Warren!

Finally, one easily-overlooked value calculation specific to Berkshire: As we’ve discussed, insurance “float” of the right sort is of great value to us. As it happens, repurchases automatically increase the amount of “float” per share. That figure has increased during the past two years by 25% – going from $79,387 per “A” share to $99,497, a meaningful gain that, as noted, owes some thanks to repurchases.


that was quite eye opening…

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In previous ARs he mentioned that he didn’t believe the float would decrease, but it if did, it would be on the order or 3% per year. I think purchases of 4% to 5% of outstanding shares per year mean your float per share would likely never decrease.

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he’s quite amazing.