Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next
Author: Grahdodd One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 217070  
Subject: Re: GEICO vs. Progressive 1999-2012 Date: 3/12/2013 9:28 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Excellent analysis. Progressive is very impressive, indeed.

My guess is Buffett would prefer to grow organically and Berkshire would rather buy back its own stock at 1.2 Times than Progressive at 3 times book.

I'm no expert-but just a few thoughts: I also wonder how much of Progressive's business would walk out the door when its re-priced at GEICO. GEICO and Progressive have their own proprietary pricing models. My guess is-a lot of GEICO's book of business is much more expensive at Progressive and a lot of Progressive's business is a lot more expensive at GEICO. Plus, you're in an arena--especially with these 2 players--where there's considerable churn to begin with.

But, yes, the appeal of acquiring that float is attractive. And I agree it would be very tough to make an anti-trust case against the hypothetical merged entity
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next


Kiddie Card Board
Should kids have their own credit card?
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Berkshire Hathaway

Taking Candy From Strangers
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.