Buffett Sees Stocks In "General Range of Fair Value": CNBC Interview Transcript (Part 2)

Becky: How is the bond insurance business going so far, the one that you started up at the end of last year?

Buffett: Well, we've done a few things, and as I mentioned the other day, for example, we were paid two percent on a 50 million dollar deal, we were paid a two percent premium, that's a million dollars, and all we did on that was, we backed up the present bond insurer, which is rated triple-A, we backed them up in case they don't pay. So, we're getting a premium of two percent for something they charged originally less than one percent for, and they still have to pay and all we have to do is pay if they don't pay. So, it just shows you what the state of the market is now, and the fact, and it also shows you that the offer we made, I think, in terms of present market prices for insurance, is really on the low side.

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