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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 168.09+1.8%Nov 28 9:30 AM EST
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To: Jon Koplik who wrote (12592)7/20/1998 5:21:00 PM
From: bananawind  Read Replies (2) of 152472
 
Jon...OT..OT...OT

re Buffett's success ascribed to being willing to be involved in a huge way in one of the most boring, least understood, but hugely profitable industries -- Insurance.

Two observations:

1. Then logically we can all have such superior results by just buying shares of insurance companies? I think you will find this was only true if you stuck to shares of Buffett's Berkshire Hathaway. Which brings us to...

2. Although Berkshire Hathaway's insurance operations (mostly large catastrophe reinsurance prior to last year's purchase of GEICO) are a good money maker and probably show one of the best long-term returns on capital employed in the business, they are not primarily responsible for Berkshire's long-term compound growth in stock price or its compound growth in shareholders equity. The latter, which now stands at something like 26-27% per year since the late 1960's, is the yardstick Buffett prefers as a proxy for growth in "intrinsic value" and the one most people talk about when they refer to his "track record". Most of this growth has come from the many 100% owned non-insurance subsidiaries and, of course, the partial interests in publicly traded companies that he has bought over the years.
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