Charles Munger, the vice chairman of Warren Buffett’s Berkshire Hathaway Inc., said the decision to take on insurance liabilities from American International Group Inc. offers plenty of risk, and also the chance for a substantial reward.
“It’s intrinsically a dangerous kind of activity, but that’s one of its attractions,” Munger said Saturday at Omaha, Nebraska-based Berkshire’s annual meeting, highlighting the judgment of Buffett and his reinsurance deputy, Ajit Jain. “Get me in a lot more of those businesses and I’ll accept a little extra worry.”
