In the previous article, we learned about how Buffett encountered GEICO insurance company. In this article, we’ll learn about how Buffett invested and profited through GEICO!

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Buffett believed in his teacher Graham's theory, but he believed that the experts of his time did not recognize the potential and charm of GEICO insurance company, while he did and was very proud of his discovery. 

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In that year, he made a decision to invest $10,000 (2/3 of his entire wealth at the time) into purchasing GEICO insurance company's stocks. Just one year later, he sold all of it at the price of $15,000, making a 50% profit. The funds that enabled him to invest in GEICO stocks were mostly saved from his newspaper delivery job in the previous years. The $10,000 was Buffett's investment startup capital.

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In June 1951, Buffett graduated successfully from Columbia University. On his report card from Graham’s class, he received the highest grade of "A+." He was the only student who received this grade from Graham during his 22 years of teaching at the school, and there seemed to be no one before or after Buffett who achieved this. Buffett broke the record for the highest score in the history of Columbia Business School.

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So where did apply for a job after graduating with high grades? He submitted his resume to the company run by his mentor Graham without hesitation - the Graham-Newman Corporation. 

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Although Buffett proposed that he would work for his mentor's company without asking for a salary, it was evident that he was determined to join. Despite being the top student and one of Graham's favorites, it appeared that Graham was committed to hiring only Jewish people and did not hire Buffett. In retrospect, Buffett humorously suggested that Graham's decision to reject him may have been based on his habitual comparison of prices and values.

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But Buffett did not plan to pursue other job opportunities in large corporations. He chose to return to Omaha and work as a salesman at his father Howard's small securities company, where there were only five employees. The first stock he promoted was the GEICO insurance company's stock, which was unknown at the time, so almost no customers were willing to buy it.

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So who were the people who listened to Buffett's advice and bought the GEICO insurance company's stock? It was his beloved aunt Alice Buffett who bought 100 shares. Later, Buffett also added, "As long as it is a stock that I share, my aunt may buy all of them." This is true love, but the problem is that besides his aunt who believed in him from the bottom of her heart, no other customers bought it!

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Buffett started wondering. Was he suitable for being a securities salesman? What was the way out for him?

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Wow, did you catch that? We discovered how Buffett managed to rake in a whopping 50% profit from his investment in GEICO insurance company! And can you believe it, despite graduating with flying colors, he wasn't succeeding as a securities salesman. 

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But here's the kicker: we're about to delve deeper into his life and find out exactly how he made his big break. So, brace yourself, folks, because the next installment is coming up and you don't want to miss it! Stay tuned for more exciting revelations!

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Learning from other people’s experiences is key.  Although we might not exactly be able to tap Warren Buffett directly for mentorship, there are communities available that are willing to help out both rookie and tenured investors.
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