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Author: simpleinvestor Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 211905  
Subject: #26/101 SHAREHOLDER DISCOUNTS Date: 12/22/1998 9:40 AM
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Save on your auto insurance by calling Berkshire's subsidiary GEICO. Extra discounts are offered exclusively to owners.
GEICO was founded on the principle that government employees get in fewer car accidents. Hence the name, Government Employees Insurance COmpany. But what great business sense to also include an extra discount for owners of Berkshire.
Owners by their very nature treat possessions differently. Have you ever noticed how rental cars are driven differently than privately owned cars? Rental cars will go where no other cars dare go! The same thing for owners of businesses, they treat there business different.
If I owned an insurance company I would want to give extra discounts to Berkshire shareholders because they are a unique group. They are probably less likely to get into car accidents and are excellent insurable risks. But most importantly they think like owners.
I personally don't enjoy buying merchandise from a company with their advertising all over it, unless I own the company.
As an owner I get enjoyment out of drinking Coke and shaving with Gillette products. Mr. Buffett liked his time share jet so much he bought the company.
More shareholder discounts are available at the Nebraska Furniture Mart in Omaha. In fact the shareholder discount is the same as the employee discount.
Why do public companies treat their employees better than their shareholders? Most retail operations have employee discounts but how many have owner discounts?
My guess is that employees are more loyal to a public company than shareholders because they stay around longer.
I recommend visiting www.berkshirehathaway.com and clicking on their list of subsidiaries. This will show you how this holding company is extremely owner orientated. Buy some candy for your mother from See's Candy while you are at it.
You'll also get a chance to support the company at the annual meeting. You'll get opportunities to buy auto insurance, dairy queen ice cream, kirby vacuums, disney and ESPN merchandise, world book enclyclopedias, see's candy, Berkshire merchandise, knives, shoes, jewerly, and Coke.
Berkshire management and owners eat their own cooking.
This company was founded on the principle that shareholders own the company. Every other public company wishes they had such an extremly loyal ownership group. But if you're a trader, speculator, market timer, and/or a professional money manager you are more concerned about price and short term profits. This group doesn't deserve shareholder discounts because they aren't truly owners.
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