QuestionerDo you think the Internet will make the insurance business more competitive and therefore raise the cost of your float?
WarrenWell, that's a good question. I would say that the Internet, from what I see now, is unlikely to increase the cost of Berkshire's float. It will have different effects on different aspects of our insurance business, and it will change the insurance industry in some ways, and I can't tell you exactly what. But you know that any system of distribution is going to be affected by something that changes in the industry. the economics of distribution as much as the Internet does. So there's no question that will have an impact. I think in the end, the competitive advantages we have among our group of insurance companies, net will not be hurt by the Internet. It's a good business for us. I don't think it's necessarily a good business for the average company. Charlie?
CharlieWhat was a marvelous issue buried in your question? Will the Internet, by making competition, so much more efficient? make business generally harder for American corporations, meaning more competitive, lower returns on capital. And my guess would be yes.
WarrenYeah, my guess would be yes, too. I would say that on balance, for society, the Internet is a wonderful thing, and for capitalists, it's probably a net negative. So all of you can be happy that the progress of the species will affect your economic futures for the worst. sacrifice at which our ages were willing to do, but we wouldn't be at your age. That, incidentally, I mean, there's plenty to think about there. The Internet, I mean, if you analyze it, you have to think it's much more likely that it will reduce the profitability of American business and improve it. It will improve the efficiency of American business, but all kinds of things improve the efficiency of American business without making it more profitable. And I think that the Internet is likely to fall into that category. So far, it's improved the monetized value of American business. But that will eventually follow the underlying economics of what the Internet does. And I think it's way more likely to make American business in aggregate worth less than compared to what it would have been otherwise.