Washington Babylon — February 28, 2009, 3:25 pm

Warren Buffett: Floating on $2.8 Billion

From Warren Buffett’s letter to the Shareholders of Berkshire Hathaway Inc, February 27, 2009:

We are fortunate that Berkshire’s two most important businesses – our
insurance and utility groups – produce earnings that are not correlated to those of the general economy. Both
businesses delivered outstanding results in 2008 and have excellent prospects.

As predicted in last year’s report, the exceptional underwriting profits that our insurance businesses
realized in 2007 were not repeated in 2008. Nevertheless, the insurance group delivered an underwriting gain for
the sixth consecutive year. This means that our $58.5 billion of insurance “float” – money that doesn’t belong to
us but that we hold and invest for our own benefit – cost us less than zero. In fact, we were paid $2.8 billion to
hold our float during 2008. Charlie and I find this enjoyable.

But it was a bad year overall: “Our decrease in net worth during 2008 was $11.5 billion, which reduced the per-share book value of
both our Class A and Class B stock by 9.6%.”

Share
Single Page

More from Ken Silverstein:

From the November 2013 issue

Dirty South

The foul legacy of Louisiana oil

Perspective October 23, 2013, 8:00 am

On Brining and Dining

How pro-oil Louisiana politicians have shaped American environmental policy

Postcard October 16, 2013, 8:00 am

The Most Cajun Place on Earth

A trip to one of the properties at issue in Louisiana’s oil-pollution lawsuits 

Get access to 164 years of
Harper’s for only $39.99

United States Canada

CATEGORIES

THE CURRENT ISSUE

January 2015

Come With Us If You Want to Live

= Subscribers only.
Sign in here.
Subscribe here.

The Body Politic

= Subscribers only.
Sign in here.
Subscribe here.

The Problem of Pain Management

= Subscribers only.
Sign in here.
Subscribe here.

Game On

= Subscribers only.
Sign in here.
Subscribe here.

Love Crimes

= Subscribers only.
Sign in here.
Subscribe here.

view Table Content

FEATURED ON HARPERS.ORG

Article
The Body Politic·

= Subscribers only.
Sign in here.
Subscribe here.

“‘He wrote all these love poems, but he was a son of a bitch,’ said a reporter from a wire service.”
Illustration by Steven Dana
Article
Love Crimes·

= Subscribers only.
Sign in here.
Subscribe here.

“If a man rapes a woman, she might be forced to marry him, because in Afghanistan sex before marriage is dishonorable.”
Photographs © Andrew Quilty/Oculi/Agence VU
Article
Game On·

= Subscribers only.
Sign in here.
Subscribe here.

“The end of the Cold War and the collapse of the Soviet Union had posed a truly existential threat.”
Illustration by Taylor Callery
Article
Come With Us If You Want to Live·

= Subscribers only.
Sign in here.
Subscribe here.

“I was startled that all these negative ideologies could be condensed so easily into a positive worldview.”
Illustration by Darrel Rees
Article
Christmas in Prison·

= Subscribers only.
Sign in here.
Subscribe here.

“Just so you motherfuckers know, I’ll be spending Christmas with my family, eating a good meal, and you’ll all be here, right where you belong.”
Photographer unknown. Artwork courtesy Alyse Emdur

Acres of hemp grown by “patriotic‚” U.S. farmers in 1942 at the behest of the U.S. government:

36,000

A study suggested that the health effects of exposure to nuclear radiation at Chernobyl were no worse than ill health resulting from smoking and normal urban air pollution.

Greenpeace apologized after activists accidentally defaced the site of Peru’s 2,000-year-old Nazca Lines when they unfurled cloth letters reading “time for change” near the ancient sand drawings. “We fully understand,” the group wrote in a statement, “that this looks bad.”

Subscribe to the Weekly Review newsletter. Don’t worry, we won’t sell your email address!

HARPER’S FINEST

In Praise of Idleness

By

I hope that after reading the following pages the leaders of the Y. M. C. A. will start a campaign to induce good young men to do nothing. If so, I shall not have lived in vain.

Subscribe Today