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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: EVBigMacMeal ✸  😊 😞
Number: of 22346 
Subject: PE’s latest grift, Berkshire related?
Date: 07/25/26 8:57 AM
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No. of Recommendations: 33
Michael Burry has a note out on Substack that discusses a recent paper describing how the PE industry are unloading their bad private credit loans onto life insurance companies they control. When the loans inevitably fail, the regulations provide that the surviving insurers eat the losses. I thought this was a new low for what is going on with PE. No doubt Berkshire is managing the situation well.

Extract from the report which Burry references:

“Private equity (PE) firms have acquired large life insurers and loaded their balance sheets with private credit assets that are opaque and difficult for regulators to value...when a life insurer becomes insolvent, state-based guaranty funds protect insurance policyholders by "assessing" surviving insurers to cover the shortfall. In most states, such outlays are fully creditable against state premium taxes over time..PE-owned life insurers reflect a structural transformation in which an insurer supports a broader asset-management business that is designed to extract value upfront and impose losses on others. PE firms exploit this regulatory regime by pairing life insurers with private credit to capture value from both sides.”

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This community has written 21,850 posts about Berkshire Hathaway. The article-length ones it recommended most:
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