3 ms·
as long as the debt costs them less than 6% then free money
by r4vik 14y ago
as long as the debt costs them less than 6% then free money
- 3am 14y agoBerkshire Hathaway's biggest problem is finding productive investments on the scale of the cash they generate. There insurance float provides them with what is essentially interest free loans if they estimates losses well.
- mseebach 14y agoas long as (profit - cost of debt)/(invested capital) > (ROI on best alternative investment) then free money. Low risk, low volatility 6% ROI isn't a bad investment at all, but I think smart money is on Buffett having an idea or two for increasing that number.