Contributed by: The Big Fat Whale
Here is a look into the mind of Buffett when he was just 21. He was still a student at the University of Columbia embracing the teachings of Benjamin Graham.
In 1951, as Geico was one of its key holdings of Graham (Graham is also Chairman of the Board), Buffett would want to know more about the company. He took a train down to Washington on a Saturday when the Geico office was closed. He was persistent enough to get the building janitor to lead him to Lorimer Davidson who was the only one working that day. Davidson would eventually be the CEO in 1958.
The encounter gave him a huge head start in the business of insurance that would be one of the key foundations for his future investment framework. Free float in the form of premiums if successfully invested would unleash the power of compounding.
Buffett came up with the thesis of investing in Geico after the meeting and have it published.
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