DealBook: Looking to diversify, wealthy people and big institutions are flocking to hedge funds that buy so-called catastrophe bonds and other investments tied to the probability of natural disasters.
I recently read a great book that applied a Modern Value Investor framework to Super-Catastrophe valuation. In Applied Value Investing, Joseph Calandro Jr valued the "Play for a Billion" sweepstakes that Buffett insured via Berkshire Hathaway.
What did Buffett charge to insure a $1 billion sweepstakes? About $10 million. For details, check out the book below.
This is the personal blog of Emory Redd.
This blog is not investment advice. This is not a solicitation to invest. Don't take candy from strangers.
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