Berkshire Hathaway: GEICO Loses Tail But Lives To Fight Another Day

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Sep. 21, 2025 2:41 AM ETBerkshire Hathaway Inc. (BRK.A) Stock, BRK.B StockPGR, BRK.A, BRK.BRB Equity1.5K FollowersBerkshire Hathaway remains a core long-term holding, offering superior risk/reward and unmatched liquidity for investors.GEICO, a key Berkshire subsidiary, restored profitability by embracing technology and streamlining operations, though it ceded market share to Progressive.The insurer’s future growth hinges on successfully implementing telematics and leveraging its DTC model to regain competitiveness without sacrificing margins.I maintain a 'Strong Buy' rating for Berkshire, citing its resilient business model, prudent management, and unique leverage through insurance float.Roberto Galan/iStock Editorial via Getty ImagesThe following note is focused on a slice of Berkshire, GEICO. It follows coverage earlier this year on other subsidiaries, Precision Castparts and BNSF, since Berkshire acquired control. Like it was the case for BNSF, which has a straight-line comparator inThis article was written byRB Equity1.5K FollowersStriving to compound knowledge. Long-time fan of Warren and Charlie. Always invert. "To finish first, you must first finish". Investing own and family funds for +20 years. Senior finance roles at public and private corporations for most of that time.Analyst’s Disclosure:I/we have a beneficial long position in the shares of BRK.B either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments