Subject: Re: Berkshire Valuation v Fairfax Financial
The case that we can ignore the float liability rests on the notion that we get to keep the earnings on the investments.
But there are no earnings on some of those investments, and never will be, so they're not worth anything to us.

Over the last decade Berkshire has kept an average of 82% of float in cash (average of year-end numbers).
At last report it was 86%.

But given Berkshire's huge size, is it material enough to worry about?

Deducting 0%, 50% and 100% of float from cash makes a +/-10% difference to my 5-groves IV estimate.

Not big at all.

I've spent far too much time on it!