Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd


The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
Unthreaded | Threaded | Whole Thread (8) |
Author: DTB ✶  😊 😞
Number: of 22353 
Subject: Re: '24 storm season forecast
Date: 05/23/24 4:34 PM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 3
Correction--meant "blow the storms EAST" not west obviously

It depends what the rest of the sentence says. We'll be ok if strong winds blow the storms East; we'll be in trouble if strong winds blow the storms West. The storms we mostly worry about are in the Atlantic, and so we who live on the East coast (or provide insurance coverage to such people) don't want those stoms to be blown West towards us.

Of course storms are insurance non-events if they don't hit the (East) coast, but a bad storm year with twice as many bad storms should generally mean that we have twice the risk of sustaining one that hits a big population centre.

But I suspect the risk factors cited in the report ("near-record warm ocean temperatures in the Atlantic Ocean, development of La Nina conditions in the Pacific, reduced Atlantic trade winds and less wind shear, all of which tend to favor tropical storm formation") have been pretty well known for a while, and so I am optimistic that the rates Berkshire obtains for this coverage are commensurate with the risk. And in general, more risk means more business, which in the long-term average means more earnings, so we probably shouldn't complain. (Although we can fret...)

dtb
Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to DTB here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 21,861 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
Unthreaded | Threaded | Whole Thread (8) |


Announcements
Berkshire Hathaway FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community