Interpublic Group of Companies

The Interpublic Group of Companies (Interpublic) is a global advertising company that was a significant common stock holding for Berkshire Hathaway in the late 1970s.

📝 The Investment

• Portfolio Concentration: Listed in the 1978 letter as a major holding with a large unrealized gain.
• Position (1978): Berkshire held 592,650 shares with a cost of $4.5 million and a market value of $19.0 million.
• Economic Characteristics: Buffett's investment in advertising agencies (including Interpublic, Ogilvy & Mather, and Grey Advertising) highlighted businesses with low capital requirements and high returns on tangible assets.

🔗 Connections

• Company: SAFECO Corporation (Portfolio peer)
• Source: 1978 Letter