Insurance

During the wedding banquet of YL, I was actually sitting next to my friend Warren. Naturally I took the advantage and asked for his view on the financial market.

"Let me start with something specific," I said, "What about those insurance companies?"

"For sure they are never short of business. You buy insurance, don't you?" My friend smiled.

"Oh, I do. But I must say I find it self-contradicting to buy insurance and to buy the stock of a insurance company." I said, "Although not absolutely the case, but, by and large it is a zero sum game. If I make money from an insurance, the company - and, therefore, its share owners - lose money."

"Exactly," Warren smiled, "And, I remind you, insurance companies are run by a group of smart people, professionally trained in financial calculation. Would you prefer making deal with them, or having them to run your business?"