In my overview of Cal politics, I mentioned that battles between trial lawyers and insurance companies are behind a lot of what goes on in California. To add a little detail, trial lawyers are a Democratic Party constituency, while insurance companies back Republicans. Given that context, it’s easy to understand why Warren Buffett has signed-on with the Arnie campaign. Buffett’s investment vehicle, Berkshire Hathaway, is heavily invested in insurance companies:
Berkshire, which earns about half its profit from insurance companies including General Reinsurance Co., National Indemnity Co. and Geico Corp., has benefited from the highest premiums in almost a decade and few losses from natural catastrophes.
So don’t be too worried about Buffett’s desire to eat the rich; this move is simply a reach-out to the business base of the Republican Party.