At Geico, Big Spending Equals Big Profits

Warren Buffett was on CNBC this morning, and during the interview he took a moment to address the exorbitant amount of money that Geico spent on advertising last year.“With three quarters of our quotes coming from the Internet, what drives Geico?” Buffett questioned. “Certainly television does it. All I know is [that] it's working.”Geico recently had a gain of 130,000 policy owners in just one month. Buffett attributes the firm's success to its ability to save customers money.“That little gecko does wonders,” Buffett added, noting that he wants every American to, at the very least, give Geico a try.