Berkshire generates $177.5 billion in float—funds held before claims are paid—that it invests for its own account while simultaneously earning underwriting profits, making the cost of this quasi-permanent capital negative. This inverts the typical insurance model where float is offset by underwriting losses, giving Berkshire a structural funding advantage no peer can replicate at this scale.
the thesis · admitted · the reason above is the thesis, not printed twice
the finding
The disclosed float balance rose from $176.9 billion to $177.5 billion, and the average cost of float remained negative in each period.
before · MD&A · 2026-03-31 → 2026-06-30
“Float was approximately $176.9 billion at March 31, 2026, an increase of approximately $500 million from December 31, 2025.”
→ after
“Float was approximately $177.5 billion at June 30, 2026, an increase of approximately $1.1 billion from December 31, 2025.”
the evidence · every sentence checkedthree sentences · whole, uncut
the claims it rests on
“Float was approximately $177.5 billion at June 30, 2026, an increase of approximately $1.1 billion from December 31, 2025”
“Our combined insurance operations generated pre-tax underwriting earnings in the first six months of 2026 and 2025, and the average cost of float was negative in each period”
“We continue to instruct our underwriting managers to decline writing insurance business when the premiums are deemed inadequate to the risks underwritten, without regard to the impact on premium volume”