Monday, January 12, 2009
I guess if you are going to jump the shark" it's good that you own a motorcycle insurance company. Buffett bought Geico in 1996 and by all accounts is still a profitable and well run wholly owned subsidiary. The problem is what you pay is only part of what it costs to be insured. The rest comes from investment returns. You know like high value companies like Berkshire Hathaway:
And like Citigroup of the previous post seems somebody knows something based on the volume at the turns.
And now back to Sesame Street where we play "one of these things is not like the other:"
Those four lines are Citigroup (red), AIG (yellow), HIG (blue) and Berkshire Hathaway (green). What do you think? C, HIG, AIG are going to quadruple in price to get back to tracking BRK? There is always the other possibility.