Float

Float — money a business holds between receiving it and having to pay it out, investable in the meantime. The canonical case is insurance: premiums arrive years before claims fall due. Berkshire Hathaway’s float reached $176B (year-end 2025), and because its underwriting runs at a profit the float has negative cost — Buffett is paid to invest other people’s money permanently. Any business that collects before it delivers (retainers, subscriptions, deposits) holds a small float; noticing it is pattern #4 thinking.

First used in: 5.2 · The ten breakthrough patterns