Warren Buffett admits that if he had just gone into the insurance business a long time ago he would have made even more money than he has now. Geico Insurance has been around since 1936. It was Warren’s Buffet decision to buy many shares of Geico a while back that proved to pay off for Warren Buffett and his shareholders at Berkshire Hathaway. Geico Warren Buffett has had a long history together ending in financial success.
Geico Insurance company was started by Leo Goodwin Sr. and his wife Lillian Goodwin in Fort Worth, Texas. The beginning of Geico was 1936. Warren Buffett acquired stock in Geico in 1951. He did his homework and saw that the company was run well and reasonable. Warren bought the shares but then sold them rather quickly and made good money. The stock continued to do well but then turned towards bankruptcy.
The 1952 sell was not the end of the road for Geico Warren Buffett. Geico has had troubles over the years. In 1996 it became solely owned by Berkshire Hathaway, Buffett’s company. Geico is now the insurance company for more than 20 million people in the United States.
Three important aspects of Geico were the reasons Warren Buffett invested in the insurance company. The three aspects are “valuation, growth, and profit margins”. Geico is recognized by the clever advertising of the talking Gecko. Geico offers competitive rates thanks to how there are so many people who have Geico as their insurance company. Geico settles claims quickly with very little trouble. Their business plan delivers to the customer helping Geico grow into the extremely successful insurance company it is are today.