What is Investment Float: Uncommon Investing Terms
Today, we talk about what is investment float, an uncommon investing term.
Welcome to our brand new series – Uncommon Investing Terms.
Download A Free Copy of My Acclaimed Value Investing Education Book How To Value Invest By Clicking Here.
In this new series we’re going to cover of course – uncommon investing terms.
“To begin with, float is money we hold but don’t own. In an insurance operation, float arises because premiums are received before losses are paid, an interval that sometimes extends over many years. During that time, the insurer invests the money.” Warren Buffett from his 2002 Berkshire Hathaway Shareholder Letter
Here are some of the specific things we’ll cover in this series…
- What these terms mean in a book sense
- What they mean in a real-world sense
- Why they’re important for you and your investment analysis
- Spot potential hidden assets using these things
- How to spot potential major red flags and avoid potentially terrible investments
- How these terms often save you an enormous amount of time by knowing them because they often show you multiple things at one time
- Know these terms to give you a major advantage over average value investors who don’t know them
- And more
I’ll also show you exactly where to find these using resources like Morningstar or by going into a companies financial reports.
If you like this new series let me know in the comments below or on social media and I’ll keep making these videos.
I hope you enjoy,
Jason
Today we’re talking about investment float… This is something almost no one knows about – and its THE major reason Buffett was able to turn $100,000 into $530 billion.
Let’s get to it
A Summary
In the video above you learned the following things…
- What is investment float?
- Find it on the balance sheet
- How its leverage like debt
- Use it positively to increase your returns instead of negatively
- And more…
To view our other videos in this series click here.
Here are the resources mentioned in the video above…
Want to learn how to find, evaluate, value, and buy great stocks fast? Ones that have helped me produce average annual investment returns of 23.5% per year on average in the first 9 years of my career? Click here to learn more about our Value Investing Masterclass.
All the following are from the Value Investing Journey Recommended Resources Page and are in no particular order. And all are designated as MUST READS!!!
- Berkshire Hathaway Shareholder Letters
- The Brooklyn Investor: So What Is Berkshire Really Worth (Part 1), The Brooklyn Investor: So What Is Berkshire Really Worth (Part 2), The Brooklyn Investor: So What Is Berkshire Really Worth (Part 3), The Brooklyn Investor: So What Is Berkshire Really Worth (Part 4)
- Shookrun.com: Buffett On Insurance.
- Losch Management: Insurance Float
- Bronstein Report: Estimating Berkshire Hathaway’s Intrinsic Value
- Warren Buffett Explains The Genius Of Float
- Warren Buffett Plays The Float With Blue Chip Stamps And Private Jets….And Wins
- Berkshire Hathaway Worth Its SALT Part 1
- Berkshire Hathaway Worth Its SALT 2012 Update – Part 2
- Buffett On Insurance And Investing: Its About The Float
- Presentation on Moats and Float
- Flirting With Float Part 1, Flirting With Float Part 2, Flirting With Float Part 3
- Understanding Insurance Float
My posts about float
- Charlie Munger On Deferred Tax Liabilities and Intrinsic Value – On Float Part 1
- What Is Float? On Float Part 2
- Buffett’s Alpha Notes – The Power of Float – On Float Part 3
- How To Find Float On The Balance Sheet – On Float Part 4
- How Does Float Affect Valuation? On Float Part 5
- Is Float Ever Bad? On Float Part 6
- Conclusion and Further Recommended Reading – On Float Part 7
- On Float The 60 Page Book
- Free Investment Float Training Video
Value Investing Journey Paid Programs On Investment Float
- On Float – Learn About The Immense Hidden Power of Investment Float To Gain A Huge Advantage Over Other Investors – Paperback Book
- Investment Float Video Training Course
Did I miss something about investment float? Do you want to know more about investing terms that I haven’t mentioned yet? Let me know in the comments below.
In next weeks video in this series we talk about another uncommon term that will give you a large advantage over average investors – total enterprise value.
P.S. I’m coming to the Philippines in April and doing 3 live events… 2 of these events will be on value investing and capital allocation. If you want to watch these in person or online click here to sign up for free and be the first to know more info about these events and how to sign up for their limited seating.