By Daily Crux Contributer Ryan Lepine:

While his purchase of railroad Burlington Northern has made a lot of headlines over the past few months, Warren Buffett also sees value in Berkshire Hathaway’s mainstay: insurance. His latest target: Munich Re, the world’s leading reinsurance company. He initially purchased a .5% stake in early 2008, but Munich Re recently declared that he now owns more than 3%, with options to purchase another 2%.

Insurance and railroads have very little in common as businesses, but they share one trait as investments: both are great inflation hedges. Railroads own irreplaceable hard assets whose value will not decline with inflation, while insurance collects current dollars to invest and then pays out premiums in inflated dollars.

Buffett obviously still sees inflation in our future.

Read full article...

More on Warren Buffett:

Warren Buffett's stocks with big upside in 2010

Warren Buffett continues to dump large holding

Warren Buffett's four key indicators led him to this stock