Since Geico, the insurance provider, is not directly traded on the open market, you cannot purchase Geico shares through your broker. However, Berkshire Hathaway, its parent firm, is traded on a public stock exchange. You can purchase it’s two classes of shares using the brokerage of your choice. If you decide to buy the stock, research your options beforehand.
A Purchase of Stock
A company’s stock must typically be publicly traded, or available for purchase by anybody, in order for you to purchase shares. When you purchase stock, you gain the right to receive dividends if the firm does, and you also have the potential to benefit handsomely if the stock price increases and you decide to sell it. Additionally, you may be granted the power to vote on specific corporate ownership decisions.
Some businesses are privately held, which means that a select few people or other businesses alone own them. Unless you are extremely wealthy and intend to make a substantial investment by arrangement with the company’s owners, you typically cannot purchase stock in these companies.
Geico is a division or subsidiary of Berkshire Hathaway, a bigger business. This means that while it is impossible to purchase Geico stock, you can purchase parent company stock and so invest in both Geico and the other businesses of Berkshire Hathaway.
Recognizing Geico and Berkshire Hathaway
The holding company that owns Geico, Berkshire Hathaway, is run by renowned Omaha, Nebraska, investor Warren Buffett. Along with countless other well-known businesses, Berkshire Hathaway also holds stakes in See’s Candies, Dairy Queen, Fruit of the Loom, and Duracell.
Therefore, while there is no stock ticker for Geico or Fruit of the Loom, you may purchase shares of Berkshire Hathaway. Class A and Class B are two different forms, or classes, of stock offered by the corporation. More voting rights are granted by Class A stock, but it is also significantly more expensive, frequently selling for well over $100,000. Typically, a share of Class B Berkshire Hathaway stock costs around $300.
Do some study on Berkshire Hathaway if you’re considering investing. On the business’ website, there is a wealth of information, including annual letters from Buffett outlining his philosophy and investment choices. The company may or may not be a wise investment for you, depending on the facts you have available.
The annual shareholder meetings of Berkshire Hathaway, which honor the company’s brands and are renowned for having a party-like atmosphere, are also open to shareholders. They’ve been dubbed “Woodstock for Capitalists” or other names that sound similar.
Alternative Investments
If you believe that the insurance sector as a whole will perform well, you can purchase stock in publicly traded insurance businesses or in funds that invest in the insurance industry in addition to indirectly investing in Geico by purchasing Berkshire Hathaway shares. Find an insurance company’s ticker symbol and buy it through your preferred broker, or look into ETFs that follow the sector. Some of these funds can be purchased and sold as exchange-traded securities through a brokerage, much like stocks.
Do your research on any investments you are thinking about, as you do with any investment. Study firms and funds using your brokerage, financial news and information websites, and online prospectuses and other documentation.
Also keep in mind that there are frequently expenses associated with buying and selling stocks, and that funds frequently charge management fees to invest in stocks. Look around to find a way to make the investments you want at a price you like because commissions vary from brokerage to brokerage and fund to fund.
