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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.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: mungofitch ✹✺🐝 SILVER
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Number: of 22353 
Subject: Re: PE Lending & Bank Lending
Date: 05/28/25 12:12 PM
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No. of Recommendations: 22
They have credit assets, they collect premiums from annuities/life policies, and then they invest in private credit and other alternative assets.

Theoretically it makes sense to have long lived assets paired with long lived liabilities.


The word "theoretically" is doing a lot of work there. This is going to blow up. Many of the assets they are investing in are their own "long life" funds and vehicles, with their own leverage and management with the same set of blind spots. Reminds me of Enron's pension assets having been invested in Enron stock.

Jim
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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
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