No. of Recommendations: 0
If it were up to you, how would you size Warren's holdings in his three, recent purchases, OxyChem, Alphabet and Chubb? The OxyChem position (100% owned)is $9.7B. CB is $8.8B, and GOOGL is $4.9 (after paying maybe $3.6B).
Personally I would not have bought OxyChem at all, and I would have bought enough GOOGL to bring GOOGL up to roughly the same size position as CB. As John Kelly showed, it's all a question of how much you estimate you will earn on a given position and how confident you are in that estimate, with confidence being the bigger factor. OxyChem has no competitive advantage, and in fact has a couple of competitive disadvantages. CB must look pretty good in Warren's eyes, and Warren knows insurance. GOOGL has 90% of the search business, and is a leader in AI.
What would you do?
