Warren Buffett has made such an impression on value investors and insurance investors, that they think that float is magic. Write insurance, gain float, invest cleverly against the float, and make tons of money.
Now, the insurance industry in general has been a great place to invest, but we need to think about float differently. Float is composed of two things: claim reserves and premium reserves.
Claim reserves can be long, short or in-between. Yesterday's article dealt with long claim reserves - asbestos, environmental, etc. Those reserves can be invested in stocks, real estate, long bonds, etc. But most claim reserves are pretty short, like a year or so for most personal insurance