Warren Buffett’s Top Plays: #19 Safeco Insurance

In 1978, Warren Buffett purchased 6% of the shares of SAFECO, a property and casualty insurance company, through Berkshire Hathaway and Blue Ship Stamps, representing 17% of his net worth. The company had a low P/E ratio, but earnings in insurance companies tend to fluctuate greatly. Despite this, SAFECO was sold in 1981 and 1982 with a 50% return on investment. In his 1978 letter to Berkshire shareholders, Buffett referred to SAFECO as the best-run large property and casualty insurance company in the United States.