Buffett Analysis of Geico in 1951

A look into young Warren Buffett's train of thoughts when he is looking at Geico in 1951.

https://thebigfatwhale.com/buffets-analy...tive-then/

The article mention he made a gain of 50% in just a year in 1957 using 50% of his fund. And had he held on to 1970 his $10k would have grown to $1.3mil.

But I wonder if he had held on further to 1976 where Geico price plunge from $60 to $2, how would Buffett react seeing his $1.3mil or half his fund money evaporated by 96%.

(29-04-2022, 11:13 PM)Bibi Wrote: The article mention he made a gain of 50% in just a year in 1957 using 50% of his fund. And had he held on to 1970 his $10k would have grown to $1.3mil.

But I wonder if he had held on further to 1976 where Geico price plunge from $60 to $2, how would Buffett react seeing his $1.3mil or half his fund money evaporated by 96%.

Buffet actually made a series of trades. Example, he sold out of GEICO after doubling before buying them back at higher prices. When the recession came and GEICO was in heavy losses, he doubled down many times via Berkshire. Eventually, a general offer for GEICO - that is a businessman, not an investor anymore.

So there we have it - a trader to activist investor to business man to permanent home-founder friendly. Practice evolution is probably the biggest lesson we can learn from Warren Buffett.

https://www.inc.com/bill-murphy-jr/warre...ous_1.html