Buffett’s big bet on radio

We live in a practical society. If something works, people spend money on it. If something doesn’t work, it’s only a matter of time until people figure it out. At that point, they stop spending their money on it.

The next time you hear a self-appointed media expert talk about how the future of media belongs to companies like Spotify, Pandora, or satellite radio, think about this: Warren Buffet is spending big money on radio.

How do we know this? According to Media Monitors, in 2014, Geico aired over 2 million radio spots, making them the insurance industry’s biggest radio advertiser! Media Monitors regularly ranks them as one of the top radio spenders across all categories of advertising. If you’ve paid any attention at all to the radio recently, this should not surprise you.

What you may not know is that one of Geico’s biggest shareholders is Warren Buffett. Mr. Buffett is one of the world’s richest people. According to Forbes, he has an estimated net worth of 72.8 billion dollars. You don’t get that wealthy making bad bets. According to the Motley Fool, Warren Buffet began investing in Geico back in 1950. He’s continued to invest more in the company since, and Berkshire Hathaway, his investment company, has begun to take control of the company. That amounts to a huge bet on radio by one of the biggest, most successful investors in the world. In a country where “money talks”, this is making a big statement. If a guy like Warren Buffet spends his money in radio, it’s because he knows it works. Isn’t that another good reason for you to believe it works?