Billionaire Warren Buffett was a pioneer in using insurance companies to invest. By using reserves earmarked for the insurance business (more commonly known as float) to fund his investments, Buffett has access to a large permanent capital base with which he can invest. At the same time, the insurance business is generating a steady flow of income only adding to performance.
Following in the footsteps of Warren Buffett with Hidden Value Stocks
This combination of insurance and investing has multiple benefits. As well as providing Buffett with a permanent supply of capital, and steady income stream, it also has tax benefits.
Following in Buffett's footsteps, other hedge funds and asset managers have adopted a similar structure, including David...
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