Conclusion and Further Recommended Reading – On Float Part 7
This post is the last one in the On Float series started way back on February 2nd 2016. Yes that date is correct. I posted the first article in this series Charlie Munger On Deferred Tax Liabilities and Intrinsic Value – On Float Part 1 seven months ago.
If I’ve done my job well in the seven parts, more than 12,000 words, and 60 pages of content including this post we all should know the following now.
- What float is.
- Why it’s important.
- How companies can use float as positive leverage.
- How Buffett got so rich using float.
- How to find float on a balance sheet.
- How to evaluate float.
- How float affects a company and its margins.
- Maybe the most important thing why float affects a company and its margins.
- How float affects a company’s value.
- And answered the question is float ever bad?
But as with any great thing in life and investing there’s always more to learn and improve on. Knowing this I’ve included the things I’ve learned the bulk about investment float from below.
Also make sure to read the comments sections of any of the following as well as there is usually great commentary there on the specifics of float.
All the following are in no particular order. Have been added to the Recommended Reading and Viewing page. And are designated as MUST READS!!! on the Recommended Reading and Viewing page.
- 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
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
I specifically want to thank Warren Buffett, Charlie Munger, Professor Sanjay Bakshi, and The Brooklyn Investor for sharing their knowledge on float. Without their knowledge none of my posts would have happened.
Reading the above things and taking notes where necessary will help you further understand the nuances of float.
But if you really want to continue learning about float make sure to read company filings, take notes, analyze the company fully, analyze its float, and value the company.
Doing this over and over – like with almost everything in value investing – not only ingrains these concepts in your thought processes. But the more you do it the more nuances you’ll spot. And the more intimate knowledge you’ll have of investment float and its immense power.
If I’ve done my job well over the last 60 pages we should now have a huge advantage over other investors who either don’t know what investment float is. Don’t know how to value and evaluate it. Or won’t take the time to learn how to do these things.
But as always there’s always more to learn and improve on so on to the next one…
Please leave any comments, questions, or concerns you have about float in the comments section below.
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