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Sydnee Gatewood
Sydnee Gatewood
Articles (2608) 

Bruce Berkowitz Comments on Berkshire Hathaway

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July 31, 2020 | About:

Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) is trading near book value, which Warren Buffett (Trades, Portfoliobelieves greatly underestimates fair market values. Berkshire is the 800-pound gorilla in insurance. Market participants perceive Covid-19 claims may bankrupt insurers. There will be significant costs and hits to portfolio companies. But, most insurance policies exclude pandemics and premiums are rising faster than risks. Meanwhile, Berkshire continues to invest no-cost insurance “float” in guaranteed cost-plus utilities and other critical enterprises. This makes sense when the Federal Reserve pays 0.25% and European Central Bank charges 0.50% to hold bank cash.

From Bruce Berkowitz (Trades, Portfolio)'s Fairholme Fund (Trades, Portfolio) 2020 semiannual shareholder letter.

About the author:

Sydnee Gatewood
I am the editorial director at GuruFocus. I have a BA in journalism and a MA in mass communications from Texas Tech University. I have lived in Texas most of my life, but also have roots in New Mexico and Colorado. Follow me on Twitter! @gurusydneerg

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