While reading the cnbc blog of the $BRK.A $BRK.B AGM, I read a quote from Ajit Jain, the vice-chairman, “there’s no question that recently $PGR has done a much better job than Geico…both in terms of margin and in terms of growth….the biggest culprit as far as Geico is concerned…is telematics”
- He points out clear, honest takeaways of one of their well known earners… and gives shareholders a direction they know they need to head - not all management are so honest and forthcoming in public
- He points out something that #tesla has been working on since it’s early AP days - and why it’s using sensors and video cameras (and neural nets & vector mapping) vs LIDAR (sorry $INTC and $QCOM..!) - Tesla’s AP safety rating currently used to see if you qualify for self driving beta can Be (and probably already is) used easily for insurance ratings and pricing… add to that the fact that $TSLA continues to expand geographies in which it offers car insurance every few months, and it could be a very large income stream in the next 3 years. Could they offer their telematics systems out to other manufacturers as a black box? Maybe…🤷🏾♂️🌟
Note re transparency - Tesla shows you your safety rating…unlike regular insurance companies who just send you a price quote!
Thoughts? Am I way off here? Is there still a lot of growth not priced in today?
Disc: Long both BRK and TSLA
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