Weekend reading: Buffett’s 1976 letter re:Geico

Buffett’s letter to a reinsurance manager about Geico in 1976. Be sure to click on the “yellow” to read some additional notes and details. Really interesting to see how Buffett discussed Geico back in 1976 when the company was in distress. Buffett sees a business in temporary trouble but with a significant competitive advantage and pounces. Also interesting to see how he talks with one of his (at the time) top managers.

$GLGI- another quarter down

Value investors usually buy stocks that, for one reason or another, have something “wrong” with them. That “issue” is often what makes them so cheap. But sometimes the market is right and the thing that is “wrong” is a truly big issue and the stock is “cheap for a reason.” It’s easy for a value investor to buy a stock all the way down that is fundamentally flawed for a reason they identified and brushed off at their first purchase, even though the issue becomes more and more apparent as time passes.

Continue reading $GLGI- another quarter down