Word of the Day: Float
Since I like value investing the most out of the different types of investment strategies, I have been studying the best in that field since about a year and a half ago. From Ben Graham in THE INTELLIGENT INVESTOR to my favorite, Warren Buffett. Anyway, I started last year with 2004 Annual Report and found a word in this year’s 2005 Berkshire Hathaway INC. Annual Report.
The word is “float” and here is a blip from the report that describes it:
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Let’s now talk about our four sectors and start with insurance, our core business. What counts here is the amount of “float” and its cost over time.
For new readers, let me explain. “Float” is money that doesn’t belong to us but that we temporarily hold.
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Anyway, it goes further into discussion on page 6 of 82 in the report. If you would like to view the report or just see what this is all about, click on the following link. The report can be accessed by clicking on the “shareholder letter” midway through the article. Here it is:
http://www.thestreet.com/_tscs/stocks/insurance/10271792.html
The word is “float” and here is a blip from the report that describes it:
-----------
Let’s now talk about our four sectors and start with insurance, our core business. What counts here is the amount of “float” and its cost over time.
For new readers, let me explain. “Float” is money that doesn’t belong to us but that we temporarily hold.
---------------
Anyway, it goes further into discussion on page 6 of 82 in the report. If you would like to view the report or just see what this is all about, click on the following link. The report can be accessed by clicking on the “shareholder letter” midway through the article. Here it is:
http://www.thestreet.com/_tscs/stocks/insurance/10271792.html
1 Comments:
21.5% Annual return since 1960s is pretty boring, but those kind of returns sure do help.
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