Interesting comment re: incentive to invest 90% in BRK. First thing that comes to mind is that the "90% investments" are allocated according to their exposure to BRK - according to BRK's allocation to these firms' Board of Directors.
If this is indeed the case, then the 90% invested - over time - becomes reliant upon and generate returns simply because they cater towards BRK's performance (a quasi-front-running investment that recycles profits from the BRK-appointed Board members and management selected by the Board that are recycled into the BRK conglomerate over time and at the "right time".)
Also, I am aware of quantitative strategists on The Street that replicate Mr. Buffett's portfolio of stocks - of course, after these investments by BRK are disclosed when the % of each investment reaches various points / fall under the category of SEC regulation relating to Rule10b5. In 2000, the SEC made an administrative ruling, known as 10b5-1, or 10b5-1 (c). Benefits from the 2000 ruling:
1)
10b5-1 is a pre-set systematic method of accumulating and/or disposing of shares, the possession of insider information becomes essentially irrelevant.
By definition, this will help stem accusations of insider trading and/or front running after a trade is consummated.
In short, for executives at high profile companies that are frequently the target of shareholder suits and almost always subject to scrutiny from the investment community, this system can be invaluable.
2) When a systematic plan is in place (which this ruling provides a safe harbor against insider trading rules enacted - in particular, Form 4), investors will be able to see the insider's intentions more clearly.
Example: certain insiders liquidate shares at regular, consistent times during the year; thus, investors are more apt to be aware of and understand that an insider is simply diversifying his or her holdings, and that the remaining sizable position in the stock implies confidence in the company.
Systematic investment plans are protected by 10b5-1 and 10b5-1 (c) and are much more beneficial for both insiders and individual investors than transactions effectuated on the open market. A 10b5-1 plan allows executives to diversify their holdings without creating a stir in the investment community, and allows investors to keep an eye on executives' sales of shares.
Mr. Buffett's comments and investments appear to generate what I will call "regulatory alpha" that is almost always immune to downside moves in the captive stocks that recycle said profits and business deals, etc. back to and under the umbrella of BRK.
Just a theory, but insurance salespeople understand human behavior and BRK / Buffett are investors in insuring various front-running schemes that are legal but often obscure and always aiming toward capturing alpha and packaging it into a single investment: BRK shares.
Another way to describe this relates to options.
This rule is essentially a zero-cost put option against insider trading charges as well as a zero-cost call option that provides Buffett an option to time holdings Form 4 normally requires.
Both options have underlying securities across the global markets, providing a high degree of dispersion of choices of which stocks can be purchased.
This dispersion has value, similar to volatility, for both put and call options.
Also, since both rules 10b5-1 and 10b5-1 (c) have not been subject to any altering by the SEC for more than a decade, the expiration of these rules' consequences is unlikely to be altered anytime soon.
This also adds value to the options discussed above.
Score 1 for zero-cost option selection.
Score 2 for high VALUE such options' dispersion embeds itself in these options (again, cost $0).
Score 3 for the time-value - or "Vega" - embedded in this game of "regulatory alpha".
Score 4 for both the put and call options' biases that promote higher stock prices ("Delta").
Score 5 for political connections and the policies that created these options that are quite convenient and valuable to big-pocket campaign donations (that can be written off for tax purposes).
BINGO.
RNR