and as such it might lose mone fast Katrina took 10bln out of Brk and Sandy took sinilar amount. With your luck as soon as you buy the disaster will struck. So going into summer if you do not want to watch weather channel to see if NY is in the path then go for it
The other replies are accurate as to the numbers. If you think that Berkshire is stupid enough to have too much potential liability in any one geographical area, or any highly concentrated risk, then you are obviously not familiar with insurance. So apart from you incorrect 'facts' your ignorance suggests that you are a short. Good luck .... shorting is fine but try picking the weakest players ... or perhaps find another avenue of investing. Given your post, might I suggest CD's. Your capital won't be the victim of your brain.
Your numbers are incorrect. Hurricane Katrina caused $2.5 billion in losses for Berkshire in 2005; and Sandy caused $725 million of losses in 2012. Berkshire's insurance operation still managed to have an underwriting profit in both years, before counting any earnings from investing the float.
Being in the insurance business will necessarily involve surprises, but Buffett has said he'll take a rocky 15% return to a steady 12% any day.
You are right on Katrina 2.5 but add Rita and Wilma, additional $.9 billion per 2005 report, but larger point remains. Global warming!. When Buffet started that was not the case. We are going into summer
any big storm and there is no telling what the losses will be... It can eat the float and then some. Saying that BRK is safe is not true. A lot of insurance comanies exited for this reason. Know what you own