Observations and musings on Jacksonville Politics

Warren Buffet pockets $224 million from Florida

I’m sure there will be debate as to whether or not this was a good idea, particularly given Florida’s budget issues. Did Buffet find a sucker or Charlie a sugar daddy? Too late for debate, though..the money’s already gone.

Billionaire Warren Buffett’s Berkshire Hathaway Inc. won a $224 million bet that Florida would escape major damage from hurricanes this year.

Florida’s option agreement that would have compelled Buffett to buy $4 billion of bonds to finance storm recovery will expire Dec. 31, Dennis MacKee, a spokesman for the State Board of Administration, said in an interview today. The state earlier paid Buffett $224 million in return for his commitment to buy the debt if needed. The calm season meant Florida had no need to raise the money.


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One Response - Comments are closed.

  1. Stubbs says:

    Sounds like an insurance policy (all be it an expensive one). Do you think, had Florida suffered a major hurricane, that Mr. Buffett would have responded quicker than FEMA?

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