Think Twice Finance

The Odd Couple: Warren Buffett and Rodney Adler.

Warren Buffett may be the most skilled buyer the world has ever known; Rodney Adler is a world class seller. I was amused this morning to see their paths cross for the second time on the business pages of “The Australian,” my chosen source of Australian and global business news and commentary. One was getting out of jail; the, other giving testimony (separate but related cases.)

The first time they met (figuratively, I believe) was, predictably enough, in a transaction. The transaction was a complex one known as “finite reinsurance.” You don’t need to know what that transaction is. In fact, I’ve never seen it explained to my satisfaction. The important thing is that the transaction had the effect of making Adler’s insurance companies (failed Australian insurance firms HIH and FIA) look good, and it made Buffett’s insurance company (General Reinsurance) several million dollars wealthier, at what appears to be miniscule risk to Gen Re. By their actions shall ye know them.

In the two stories that follow: Rodney Adler Exits Prison a Better… Nah. and Warren Buffett:  “If You Need Me, Just Call Me.”  I’ll explain why their meeting was karma, and something of how personality shapes business outcomes.