@article {Calandro83, author = {Joseph Calandro, Jr and Robert Flynn}, title = {Berkshire Hathaway, General Re, and Franchise Risk}, volume = {8}, number = {1}, pages = {83--95}, year = {2005}, doi = {10.3905/jai.2005.523084}, publisher = {Institutional Investor Journals Umbrella}, abstract = {This article illustrates how the modern value-investing framework can be employed to more effectively value insurance companies. By utilizing the case study of Berkshire Hathaway{\textquoteright}s 1998 purchase of General Reinsurance Corporation, this article demonstrates how to more effectively construct a valuation, and specifically how to better consider the unique and intangible aspects of insurance company valuation. At approximately $22 billion General Re was Berkshire Hathaway{\textquoteright}s largest acquisition, and given the losses sustained post-buyout, it was also the firm{\textquoteright}s most troubled. Berkshire Hathaway{\textquoteright}s experience here is no mark against the unparalleled expertise of its chairman, investor Warren Buffett, but rather illustrates the unpredictability and volatility of insurance company valuation.}, issn = {1520-3255}, URL = {https://jai.pm-research.com/content/8/1/83}, eprint = {https://jai.pm-research.com/content/8/1/83.full.pdf}, journal = {The Journal of Alternative Investments} }