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compulsory reinvestment oh oh back on the uh it goes back some years on that description yeah the in in the case of the businesses that we're in both wholly owned and major investee companies we regard the reported earnings with the exception of the some major purchase accounting adjustment which will usually be an amortization of intangible side and we regard the reported earnings actually the reported earnings plus plus or minus but usually plus purchase accounting adjustments to be a pretty good representation of the real earnings of the business now you can make the argument that when coca-cola is spending a ton of money each year in marketing and advertising that they're expensing that really a portion of that's creating an asset just as if they were building a factory because it is it is creating more value for the company in the future in addition to doing something for them in the present and i i wouldn't argue with that but of course that was true in the past too and if you capitalize those expenditures in those earlier years you'd be amortizing the cost of them at the present time i think with a relatively low inflation situation with the kind of businesses we own uh i think that reported earnings plus amortization of any well it's really amortization of intangibles other purchase accounting adjustments usually aren't that important i would say that that they give a good representation to us of owner earnings uh can you think of any exceptions in our businesses particularly charlie no we have uh after some unpleasant early experience we have tried to avoid places where there was a lot of compulsory reinvestment just in order to stand still and but there are businesses out there that are still like that it's just that we don't have any yeah i would say and one i would say that in the case of geico for example the earnings the gain in intrinsic value will be substantially greater than represented by the annual earnings when you whether you want to call that extra amount or owner earnings or not it's another question but but as we build float from that business as long as it's represented by the same kind of policyholders that we've had in the past there is an added element to the gain in intrinsic value that goes well beyond uh the reported earnings for the year but whether you want to really think of that as earnings or whether you just want to think of that as an increment to intrinsic value you know i sort of believe to you but i but i would say that there's no question that in our insurance business where our float was was 20 million dollars or so when we went into it in 1967 and where it is now that that there have been earnings in effect through the buildup of the float that have been uh above and beyond uh the reported earnings that we've given to you i think our look through earnings are they're very rough and we don't try to we don't we don't believe in carrying things out to four decimal places where you know we we really don't know what the first digit is very well so uh i don't want i don't want to i don't i never want you to think of them as too precise but i think they give a a good rough indication of the actual earnings that are taking place attributable are to our situation every year and i think the pace at which they move gives you a good idea as to the progress or the lack of progress that that we've made the only big adjustment i would make in those is that in the super cat insurance business we're going to have a really bad year occasionally and and you probably should take something off all of the good years and you probably should not regard when the bad year comes you should not regard that as as as something to be projected into the future charlie no more no more zone nine
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