Float: The Most Elegant Business Model Ever Invented
Berkshire's secret weapon is insurance float. When you buy an insurance policy, you pay premiums upfront and the insurer pays claims later — sometimes years later. In between, the insurer holds your money and invests it. This is 'float' — free money to invest. Berkshire's insurance businesses (GEICO, General Re, Berkshire Hathaway Reinsurance) generate $150B+ in float. Buffett invests that float in stocks and businesses. If the insurance businesses break even on underwriting (zero cost of float), Berkshire has essentially borrowed $150B at 0% interest to invest. No other business model generates investable capital this cheaply.
The play
In your business, identify any model where customers pay you before you deliver the service — subscriptions, deposits, annual contracts. That gap between payment and delivery is your float. The larger and longer that gap, the more investable capital you have at zero cost.