When Warren Buffett broke his own investing rules!
Warren Buffett, one of the world's most successful investors, broke his own investing rules when he invested half of his own net worth in GEICO, a small US insurance company, in 1951 and this company would go on to become his most profitable investment.
How so?
GEICO was looking for a capital infusion to avoid bankruptcy after a long period of failed expansion. Buffett bought a third of the company and the company began to generate profits the following year!
Buffett bought the company out completely in 1996, making it a subsidiary of his holding company, Berkshire Hathaway.
Why, however, GEICO?
Aside from the financial benefits of investing in such a profitable business, his greater benefit of acquiring this company was due to an insurance float.
Insurance companies have large sums of money lying around because customers pay premiums up front and claims are typically due years later.
Warren recognized that his team could reinvest and profit from this large pool of money, a strategy that helped Berkshire transform into a diversified conglomerate whose Class A shares sell for around $400,000 today!
Ditto is the strategic insurance partner for The Builders Club
All builders in the Builders club get a priority pass from Ditto if they are looking for insurance, allowing minimum waiting time for availing our advisory services and a 24x7 senior insurance advisor for all insurance related advice.
What is Ditto?
Ditto is a fast-growing customer centric, spam free insurance advisory platform focusing upon contextual & personalized advisory that is changing the way we look at and buy insurance. Ditto is a product of Team Finshots.
Ditto has helped over 85,000+ people to make an informed decision when it comes to understanding and buying insurance.
TBC Startup Essentials
We have launched a startup essentials kit where all builders get access to premium perks worth more than $50,000 for $75 ONLY!
For all the builders in the club, use the code TBC to get 20$ discount on the same!
Only 100 tickets available
Buy now!
About The Builders Club :
The Builders Club is a community driven platform which enabler in your startup journey
We have multiple initiatives and events which we do regularly to help you accelerate your growth and move to the next stage of your startup life cycle.
Know more:
https://www.thebuildersclub.me
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