How can you tell that Warren values Berkshire's insurance operations above all the rest of the conglomerate?
Because he kept Ajit Jain at the helm of the insurance ops rather than make him heir apparent.
Insurance and reinsurance are the golden goose from which all else flows.
Well, insurance and See's Candy.
From Investor's Business Daily, May 6:
Elon Musk Says Warren Buffett Should Buy Tesla Stock After These Comments
Tesla (TSLA) Chief Executive Elon Musk on Sunday suggested that Warren Buffett should invest in the EV giant, after the "Oracle of Omaha" addressed Tesla's Full Self-Driving (FSD) efforts during Berkshire Hathaway's (BRKB) annual shareholder meeting. TSLA shares advanced early Monday.
Billionaire Warren Buffett commented over the weekend on the potential risk that auto insurers, such as Berkshire's Geico, could face if Elon Musk and Tesla succeed in their automated driving endeavor.
"If accidents get reduced by 50%, it's going to be good for society and it's going to be bad for insurance companies' volume," Buffett said. "But good for society is what we're looking for."
Berkshire Hathaway Executive Ajit Jain added during the annual meeting that while Tesla feels the number of auto accidents come down because of its technology, repair costs of each accident could go up.
"If you multiply the number of accidents times the cost of each accident, I'm not sure that total number has come down as much as Tesla would like us to believe," Jain said. He added that Tesla insurance so far "hasn't been much of a success."
"Time will tell but I think automation just shifts a lot of the expense from the operator to the equipment provider," Jain said.
Warren Buffett And Elon Musk....
....MUCH MORE
Berkshire Hathaway Annual Meeting: May the Fourth Be With You Warren Edition (BRK)
