Buffett’s Secret of Success

Buffett’s Secret of Success:
1. The power of the float and
2. The power of compound return

Insurance premiums are effectively a free loan. You don’t have to pay any interest, just make sure you don’t pay out too much in claims. These premiums are known as the float and act like a leverage for an investment portfolio.

For five decades, Buffett has been investing the world’s cheapest money. Insurance is the heart of Berkshire.

Watch video: [Financial Times]

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