Why a Flat Fed Funds Rate Creates Value in Insurance Float

In this episode of The Value Investing Podcast, Lucas and Luna explore why a flat Fed Funds rate—currently 3.63%—creates surprising value in insurance float assets. They examine how companies like Berkshire Hathaway and Markel benefit from stable interest income on float, why the market is underpricing this cash flow stream, and how investors can play it. With the Fed holding rates steady into June 2026, the case for insurers with large, low-cost float becomes compelling. Lucas breaks down the math on float yield versus cost, and Luna challenges whether the environment is sustainable. A concrete look at a classic value play that's quietly compounding. #InsuranceFloat #ValueInvesting #FedFundsRate #BerkshireHathaway #Markel #FloatYield #InterestRateEnvironment #CashFlow #Insurance #Compounding #ValueStocks #Finance #Business #FexingoBusiness #BusinessPodcast #InvestingPodcast #LongTermInvesting #Buffett Keep every episode free: buymeacoffee.com/fexingo