“Warren Buffett’s WORST NIGHTMARE Is About to Come True”

Sleuthifying a Fool pitch for the Friday File, plus some updates on companies I own and follow

May 12 Update: The lateset teaser pitch from the Fool is touting this same stock again, only with a different spiel from a different company as they tout the “connected car” instead of the “autonomous car”. I presume they’re just testing different ads to see what works best — this latest one pitches it as:

“You Use This $5.1 Trillion Industry Every Day…
“But It Just Died And Went To ‘Free Tech Paradise’….

“Your $48.8 Billion Windfall: Owning 1 Company Creating Today’s Connected Car Revolution.”

But it’s still the same company pitched as “Warren Buffett’s Worst Nightmare … back to our original article:

I’ve got a couple updates on some of the companies I own and write about frequently for you today — but first, the most-requested teaser pitch of the day is our headline topic.

The Motley Fool is pitching this “Buffett’s worst nightmare” stock in order to get subscribers to David and Tom Gardner’s Stock Advisor newsletter, and they open the ad this way:

“What happens when the perfect business model sustains a direct hit from the brightest minds at one of Silicon Valley’s most innovative firms?

“Tough to say exactly. But here’s what experts DO anticipate…

CNBC predicts this burgeoning industry will be the ‘new battleground for tech companies.’ Forbes magazine estimates it will soon generate $2 trillion a year in sales and ‘even more market cap.’ KPMG advises we’re “on the cusp of revolutionary change” coming much ‘sooner than you think.'”

What’s that all about? The death of the auto insurance industry — which they tease is coming our way, sooner than you think, because of the advent of self-driving cars. Auto insurance is, of course, one of the major cash-gushing indexes owned by Berkshire Hathaway (BRK-B), primarily because they bought GEICO several decades ago and have poured as much money as they can find into marketing to grow that cash machine.

And no, not even the Motley Fool ad says that this will not be enough to seriously derail Berkshire specifically — but saying that something is Buffett’s “worst nightmare” does catch your attention and get you to read the ad, no?

Here’s some more in their words:

“An emerging technology from within the heart of Silicon Valley has the potential to destroy GEICO’s business as we know it.

“PricewaterhouseCoopers says this technology will ‘significantly disrupt the traditional auto ...

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