Prime Stock Recommendation : Investing in the business of risk
A few weeks ago, Warren Buffettโs Berkshire Hathaway announced the acquisition of Alleghany Corporation with a $11.6 billion deal, its largest buy-out deal in six years. The decision has come at a time when the general insurance industry has faced headwinds in the last 2-3 years. But there is no one better than Buffett to understand the prospects and valuation of an insurance company.ย Berkshire Hathaway owes its long-term wealth creation success to excellent underwriting skills in its insurance subsidiaries and clever usage of the float from insurance to build a long-term equity portfolio.ย
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