His GEICO investment was about more than just him believing in GEICO. It was much more brilliant than that.<p>Insurance companies are wonderful to own because you get access to their capital. They have tons of floating capital that&#x27;s held in reserves, from premiums, until it needs to be paid out for claims.<p>GEICO was a perfect investment for a young Buffet because he exchanged cash (liquidity) for <i>even more liquidity</i>.