Berkshire Hathaway and GEICO: an M&A Case Study

In striking contrast to the problematic M&A track record of many firms, financier Warren Buffett, the Chairman and CEO of Berkshire Hathaway, has been a remarkably successful acquirer. There can be many reasons for this contrast, but a key one is likely Buffett's effective approach to valuation and pricing; in other words, Buffett generally does not overpay for acquisitions. As a student, Buffett received training in valuation at Columbia University from the late Benjamin Graham and has practiced and developed Graham's techniques ever since.