Topic
9 facts from 3 episodes, in date order. These are what speakers said on the shows, each linked to the moment it was said. They aren't independently verified.
1950
The Graham-Newman partnership owned 55 percent of the Government Employees Insurance Company (GEICO), and Benjamin Graham sat on its board.
“the graham-newman partnership owns 55 percent of and graham is on the board of this little company in washington called the government employees”
1951
Warren Buffett first visited Geico in January 1951 and then spent the rest of that year visiting leading insurance analysts.
“When I first visited Geico in January 1951, I left, and then the rest of the year I went down and would visit leading insurance analysts.”
late 1970s
By the end of its turnaround, GEICO had shrunk to operating in only seven states plus Washington, D.C.
“Geico, by the end of this, has shrunken down to only seven states.”
1976
GEICO announced a $190 million underwriting loss in 1976, the largest in its history.
“in 1976, the company announces a $190 million underwriting loss, the largest in its history, maybe even the largest in like auto insurance history period at that point in time”
1976
GEICO's stock price fell from $61 to $2 a share during its 1976 crisis as insurance regulators moved in.
“Insurance regulators descend on the company. The stock drops from $61 a share to $2 a share.”
1976
Salomon Brothers was the only bank willing to underwrite GEICO's $76 million convertible debt offering.
“They're the only bank that is willing to underwrite what ultimately ends up being a $76 million convertible debt deal, convertible into equity that they underwrite.”
1995
Berkshire Hathaway bought the half of GEICO it did not already own for $2.3 billion in 1995.
“And then in 1995, Berkshire buys the rest of Geico that it doesn't own for $2.3 billion.”
1995
Buffett said Geico spent about $800 million a year on advertising, up from a little over $20 million when Berkshire took control in 1995.
“We'll spend about $800 million a year on advertising. We were spending a little over 20 million a year when we bought control in 1995.”
Undated
Warren Buffett said Geico was paying about $10 per click for Google ads that cost Google essentially nothing to deliver.
“we were paying $10 a click for something that had a marginal cost to Google of exactly zero”
Episodes