Buffett explained the three accounting methods of equity ownership.
He also discussed the impact of inflation again. Indeed, to be insulated, “business earnings consistently must increase in proportion to the increase in the price level without any need for the business to add to capital.”
Buffett like the GEICO buy. And he makes a point on “turnaround” – actually GEICO didn’t need a turnaround. GEICO was great and only needed to take a break it seemed.
The victims of high inflation were bond holders, which including insurers. Buffett discussed
And one astonishing fact, when Berkshire issued bonds, it was 12.75% for $60mn!!