Buffett points out that an underwriting profit, which Berkshire usually achieves

1.Buffett points out that an underwriting profit, which Berkshire usually achieves, puts the company in the happy position of getting paid to hold other people’s money. But is an underwriting profit a necessary condition for an attractive return on investment in the business? Why or why not? 2.Buffett comments that Berkshire’s unusually strong financial position, in particular it’s huge capital base, positions it better than most companies to invest its insurance float in a wide range of alternatives. What does he mean? 3.Buffett refers to insurance float as a form of capital. How specifically might this float resemble capital, and what form of capital (i.e. debt or equity) does it most resemble?