Fancy university degrees don’t impress legendary investor Warren Buffet much. In fact, he doesn’t even look for desirable university degrees when hiring a new candidate for Berkshire Hathaway. “I don’t care where someone went to school, and that never caused me to hire anyone or buy a business,” Buffett said in a 2006 interview with the Wall Street Journal. Surprisingly, he himself didn’t want to go to the college even and it was just because of his dad he “After the first year (at Wharton) I wanted to quit and go into business,” Warren Buffett explained. “My dad said, ‘Well, give it one more year.’ So I went the second year, and I said ‘I still want to quit.'”
Annual letter to stakeholders
Meanwhile, in the annual letter issued to his company’s stakeholders earlier this year, Oracle of Omaha discussed about his future plans, and about profitability of Berkshire Hathaway. He also talked about the latest US Tax Code and inability of Berkshire Hathaway to acquire large companies.
Warren Buffett also shared about the things which helped the conglomerate from going under whenever there was a catastrophe, whether its was a hurricane or a wildfire. “The downside of float is that it comes with risk, sometimes oceans of risk,” Warren Buffett said in the same letter.
There is no company that is even near to Berkshire in being financially prepared for a $400 billion mega-cat, the yearly probability of catastrophes in the US, Buffett added.
The loss of $400 billion exposure to mega-catastrophe at Berkshire might be $12 billion or such, he said further. This given amount is far below the estimated yearly earnings from the non-insurance activities of the conglomerate.