Reading through this years Berkshire Hathaway (NYSE: BRK.A) annual report, I noticed that the cash float that the company is carrying in it's insurance enterprises has reached $59 billion. As "my pal Warren" explains, this float is free to invest as long as they break even on premiums and claims. This is one of the many advantages Berkshire has had over other investors for decades, and this allows it to leverage it's returns without the risk that others would have to take to make the same money. Berkshire does not own the float, but it owns the profits, and the larger the insurance business becomes the more float he has to invest.

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