He evaluated the potential risk and then set a premium that gives him an edge against the probability of having to make a payout.
But if someone happens to accomplish the near-impossible feat this year, Warren Buffett has a nice little prize in the form of one billion American dollars.
"Hurricane Katrina probably cost us 3 billion.
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Warren Buffett is offering 1 billion to someone who can fill out a perfect March Madness bracket.Berkshire, which owns a stake in rival Coca-Cola., ended up off the hook: There was no winner.What March Madness can teach us about business.The business mogul has partnered with Quicken Loans for cheap iphone 6 contract the contest, which will also award 100,000 to the 20 most accurate imperfect brackets (although the money must be used toward buying, refinancing or remodeling a home).The odds of correctly forecasting 67 games are extraordinarily thin.
Based on his finding, Buffett would need to charge a premium of about 10 million to break even against his expected results, Miller said.
He said he would probably strike a deal at significantly less than 1 billion with anyone who gets deep into the tournament without missing a game.
But on Thursday, an email sent to all Berkshire employees registered for the contest, obtained by Yahoo Finance, announced, Warren Buffett has increased the prize money!
Other companies have offered 1 million for a winner, but no one has come close to Buffett's idea except Buffett himself.We insure 10 of all the cars in the United States.Is your March Madness office pool legal?March Madness bonanza in business, and on Thursday, days before the official bracket comes out, CEO Warren Buffett boosted the bounty for Berkshire folks.Weve seen a lot flash contest app store of contests offering a million dollars for putting together a good bracket, which got us thinking, what is the perfect bracket worth?Berkshire Hathaway bRK-A ) is known for offering its employees the most lucrative.Quicken also will award 100,000 each to the contest's 20 most accurate brackets to use toward buying, refinancing or remodeling a home.The next year, it dropped the contest, and since then it has run its contest for Berkshire employees only.