Lou Simpson
Legendary investment manager who ran GEICO's investment portfolio from 1979 to 2010, achieving exceptional returns and serving as a role model for value investing.
Lou Simpson
Lou Simpson was one of Wall Street's most successful investment managers, running GEICO's investment portfolio from 1979 until his retirement in 2010. He is widely regarded as one of the finest value investors in the industry.
Background
Career at GEICO
Lou Simpson joined GEICO in 1979 and took over the investment management of the company's $400 million investment portfolio. Under his leadership, GEICO's investment portfolio grew substantially and generated exceptional returns.
Investment Philosophy
Simpson is a classic value investor, similar in philosophy to Warren Buffett:
- Focus on intrinsic value
- Margin of safety
- Long-term holding periods
- Concentration in best ideas
Investment Performance
Returns
Simpson's performance at GEICO was outstanding:
- Outperformed the S&P 500 consistently
- Achieved double-digit returns over decades
- Preserved capital during market downturns
Comparison to Buffett
Buffett praised Simpson repeatedly:
"Lou Simpson has done a fabulous job of running the investments of GEICO since about 1979. And we're lucky to have him."
Legacy
Teaching Others
Simpson mentored several investors who went on to successful careers. His investment principles have been studied by value investors worldwide.
Retirement
Simpson retired in 2010, leaving behind a remarkable track record of compounding capital at high rates.
Famous Quotes
"The key to investing is not how much industries will change in the future. It's how much they will not change."
Related
- warren-buffett — Who praised Simpson
- geico — Where Simpson worked
- value-investing — Simpson's investment approach
- insurance-float — The capital Simpson managed
Source
Berkshire Hathaway Annual Meetings