Investing Lessons From C's and Geico

Lee: I've been a fan of yours in a Berkshire since I was a kid, looking through the stock pages and seeing one crazy stock that traded for $10,000 a share. But now I'm a shareholder as an adult and he's here with his daughters, Mabel, who's 7 and Willa, who's one year old, my wife. Lee: McLean is a company that has an extraordinary amount of sales in relation to intrinsic value or to net income. He says it operates on about 6% gross margins and 5% operating expenses. And obviously a 1% pretax margin only works in terms of return on capital if you turn your equity extraordinarily fast.