Stock Research and Analysis
by Bill BergmanWesco Financial is a holding company whose subsidiaries rent furniture, bend metal, and underwrite insurance. Wesco is 80%-owned by Berkshire Hathaway BRK.B, and Wesco's CEO and chairman Charles Munger has long been a close partner of Warren Buffett. Read more 
Bulls Say
Wesco's large cash stake proved a wise investment in the last two years. With recent market declines, there's no other team we'd want picking over cheap stocks on our behalf.
Wesco Financial Insurance participates in unusually attractive insurance arrangements because of its Berkshire links as well as its own solid capital position.
Wesco has developed an infrastructure befitting a significantly larger insurer on its own accord. Read more
Bears Say
Munger and Buffett simply can't be replaced.
The reinsurance business has seen a flood of new entrants in the last decade, and Wesco's previously entrenched position is at greater risk. Read more
Strategy
Wesco has employed financial strength, underwriting effectiveness, and investment success to develop superior returns for shareholders. Its high capital position has enabled it to participate in reinsurance arrangements on attractive terms, and the strong performance of its Kansas Bankers Surety subsidiary has also generated float on which the firm has capably invested. Read more
Management
Charles Munger, chairman and CEO of Wesco since 1984, is one of the most well-respected leaders in either the insurance or investment industries. Berkshire Hathaway chairman Warren Buffett contributes to Wesco's capital-allocation and investment decisions. Read more
Profile
Wesco is a holding company that owns insurance, furniture rental, and steel service businesses. Wes-FIC offers super-catastrophe reinsurance. Kansas Bankers Surety provides bank insurance. Read more
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