Berkshire Hathaway Inc (BRK.B)

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Bar, The 'float' aspect of the insurance business makes it great for someone like Buffett, since he can use that available money to invest with. But for us regular investors, the insurance brokerage sub-sector may make even more sense. The brokers don't have the 'float' aspect, but their business is a lot less risky than actually issuing insurance policies. Brokers just act as intermediaries, so the risk is much lower, and business is strong during troubled times since more insurance policies are needed.

On the insurance brokerage side, Berkshire has had AON and MMC (though recently sold MMC). AJG looks like another nice one in the broker sub-sector. Check out their phenomenal long term charts -- the steadiest upward trajectories of any stocks anywhere.

Article excerpt on MMC -

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172932242

>>> Marsh & McLennan's former CEO Dan Glaser perfectly summed up the business last year when he said, "When the world is unsettled, demand for our services rises." Marsh & McLennan advises companies on managing risks and connects them with insurers to help mitigate them. It also advises companies on corporate strategy, investments, and workplace issues.

Marsh & McLennan's insurance brokerage business is its bread and butter, and has been a key source of growth for the company. Although insurance may seem boring, insurance products will always be in demand, and these businesses can grow well during economic expansions and inflationary periods. In fact, this demand, which brings steady cash flows, is a big reason Buffett loves owning insurance businesses.

The past few years have been great for Marsh & McLennan's brokerage business, which earns commissions when it refers customers to an insurer. According to its Marsh Global Market Index, global insurance prices have risen for 23 consecutive quarters. As insurance prices rise, so do Marsh's earnings. So far this year the company's risk and insurance services revenue has increased 11% from the same period last year, and was the key to the company's 8% total revenue growth.

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