Berkshire Hathaway first invested in GEICO in 1976.
The investment revived Warren Buffett's long-standing interest in the insurer. As a Columbia Business School student in 1951, Buffett had visited GEICO and learned about its direct-to-consumer auto-insurance model. He bought shares personally at that time, but later sold them.
GEICO ran into severe financial trouble in the 1970s after underestimating claims costs. In 1976, Buffett saw an opportunity and Berkshire purchased about one million shares while the company’s stock was deeply depressed. The investment became an important part of Berkshire’s insurance strategy and helped establish GEICO as one of its most valuable businesses.
Berkshire did not acquire full ownership in 1976. It gradually increased its stake, and in 1996 acquired the remaining GEICO shares for about $2.3 billion. That distinction explains why 1976 is the answer for the first investment, while 1996 marks GEICO becoming a wholly owned Berkshire subsidiary.