Do Auto Insurance Companies Make Money?

Buffett’s classic theory is that insurance companies can generate a lot of float from the premiums. The idea is that large numbers of people send in premiums every month, so as long as the amount of payments taken in exceeds the claims paid out, the insurer has a big pile of extra cash it can tap.

Read more

Google Could Revolutionize Auto Insurance

Entering auto insurance would make a lot of sense for Uber because insurance has been one of the barriers blocking drivers from adopting its service. Some communities, like Kansas City, Missouri, have even banned Uber because of inadequate insurance. Offering insurance could remove that barrier and defuse one of the taxi cab industry’s main objection to Uber.

Read more

Uber Drivers in Good Hands with Allstate

Auto insurance could be a gateway for selling other products, such as disability insurance, bonding, life insurance and health insurance, to networked transportation drivers and others in the gig economy. The potential profits to be made could be enormous; a survey that Edelman Berland conducted for the Freelancers Union found that 53 million Americans, or 34% of the population, are involved in some sort of freelance work.

Read more

Is Uncle Warren Going Shopping?

What’s more intriguing is that Uncle Warren himself seemed to confirm such speculations with a cryptic remark to MSNBC. After calling Exxon a “wonderful company,” he said, “We thought we might have other uses for the money.”

Read more

Ten Mind Blowing Facts about Warren Buffett’s Berkshire Hathaway

What is even stranger is you would have to sell almost four shares of Berkshire Hathaway’s Class B (NYSE: BRK.B)[3] stock to get enough money to buy one share of Google’s Class B stock (NASDAQ: GOOG). On March 10, 2015, one share of BRK.B was selling for $143.85, while one share of GOOG was selling for $559.44.[4]

Read more

The Railroad Everybody Forgets About: Kansas City Southern

The assets are the connections to the port of Lazaro Cardenas on the Pacific and the track that connects it to Kansas City. The Kansas City Southern has a direct connection between those ports and America’s heartland.

Read more