Buffet's GEICO bid boosts August insurer stock prices.(Warren Buffett)

National Underwriter Property & Casualty-Risk & Benefits Management, September, 1995 by Meakin, Thomas K.

Thank you, Warren Buffett! Your publicly-traded domain, Berkshire Hathaway, helped turn August into a banner month for property-casualty stocks! You did that with a $2.3 billion bid for the 49 percent of direct writer GEICO that your vastly successful holding company doesn't already own. (The deal works out to $70 a share for the minority shareholders of GEICO.

GEC started August at 55 3/4 and ended the month at 68 1/4, up 22.4 percent.) News of Mr. Buffett's bid sent a number of investors big and small in search of insurance stock analysts. Some who contacted me had not before considered investing in insurance stocks! What I heard was: "If Warren Buffett--arguably the most successful stock picker of our time--has a multibillion dollar appetite for GEICO, there...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.