'We have 7 billion, presently, of float. That’s the money we’re holding that belongs to someone else but that we have the use of.
Now, if I were asked, would I trade that for $7 billion cash that would be ours and not have to pay tax on the gain that would result if I did that, but I would then have to stay out of the insurance business forever — total forever non-compete clause of any kind in insurance — would I accept that? And the answer is no.
Now, that is not because I would rather have 7 billion of float than 7 billion of net proceeds of free money. It’s because I expect the 7 billion to grow.
And if I’d made that trade — that I’m just suggesting now — if I’d made that 27 years ago and said, “Will you take 17 million for the float you have, no tax to be paid, the float for which you just paid 8-million-7 when we bought the companies, and gotten out of the insurance business,” I might’ve said yes in those days.
But it would’ve been a terrible mistake. It would’ve been a mistake to do it 10 or 12 years ago with 300 million. It is not worth $7 billion to us to forego being in the insurance business forever at Berkshire Hathaway
Even though it would all be, you know, it would be — if it were nontaxed profits, so we got the full 7 billion, pure addition to equity — we would not take it. And we wouldn’t even think about it very long. So as Charlie says, that is not the answer that we would’ve given some time back. But it’s a very valuable business'.