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ENTITY
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Milt Thornton

1. Origin of Relationship

Milt Thornton was the President of Cypress Insurance Company since 1968. When Wesco Financial Corporation acquired Cypress for cash in late 1977, Thornton stayed on to run the business, marking the beginning of his formal relationship with Warren Buffett.

2. Major Milestones

  • 1977: Continued to lead Cypress after its acquisition by Wesco. Buffett praised him as running a first-class operation for policyholders, agents, employees, and owners alike.
  • 1978: Guided Cypress through its first full year as a Wesco subsidiary, maintaining outstanding underwriting margins in California workers' compensation.
  • 1979: Achieved excellent underwriting profits despite severe pricing pressure in the California workers' compensation market.

3. Strategic Importance

Milt Thornton exemplifies the ideal Berkshire manager—an experienced, disciplined operator who runs his business with an owner's mindset and has no desire to retire or change operations post-acquisition. Thornton's underwriting discipline in California's volatile workers' compensation market proved that specialized focus and operational integrity could consistently generate underwriting profits, making Cypress a key contributor to Wesco's and Berkshire's insurance float.

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