tag:blogger.com,1999:blog-5389144729834496735.post5311046723915848437..comments2024-03-17T05:15:55.634-04:00Comments on The Brooklyn Investor: Markel 2012 Annual ReportUnknownnoreply@blogger.comBlogger12125tag:blogger.com,1999:blog-5389144729834496735.post-37879677100011380532013-11-07T08:37:37.720-05:002013-11-07T08:37:37.720-05:00Hi,
That approach is basically the same as the tw...Hi, <br />That approach is basically the same as the two column method to value Berkshire Hathaway; investments per share plus value of non-insurance operating businesses. I've written about what I think about that aproach (what is float worth? and other BRK posts). It makes sense, but my only reservation is that I think equity investors use a higher discount rate that would make the investments per share worth LESS to them than it's mark-to-market value. <br /><br />At the end of the day, when I buy MKL, I am an equity owner and I am mostly interested in the return on that equity. I don't care what investments per share is. If it's high and leveraged, that means I make a high ROE. So I would usually be willing to pay a multiple of book value depending on what the normalized ROE or BPS growth over time would be. Look up my posts on BRK for more on this issue. <br /><br />Thanks for reading. kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-41486673142314614142013-11-07T00:54:42.447-05:002013-11-07T00:54:42.447-05:00What do you think of valuing MKL and similar Insur...What do you think of valuing MKL and similar Insurance/holding companies, as Tom Gayner and others have suggested? More specifically, assuming underwriting is breakeven and then adding in investments per share + the earnings stream from companies they own, subtracting debt? The quote of Gayner and the math is shown in this article http://seekingalpha.com/article/1762702-markel-baby-berkshire-is-on-sale.<br /><br />I'd be interested to hear of your opinion on this valuation method. Thanks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-43902081646296088852013-04-13T15:23:30.884-04:002013-04-13T15:23:30.884-04:00Hi,
Thanks. Yes, WTM is a great company too. I...Hi, <br /><br />Thanks. Yes, WTM is a great company too. I don't own any now but have in the past. I may post about it in the future. kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-29491811842249127022013-04-13T12:02:15.149-04:002013-04-13T12:02:15.149-04:00I was wondering if you were going to cover WTM--an...I was wondering if you were going to cover WTM--annual report just came out<br /><br />http://www.whitemountains.com/PDF/WTM_2013_Management_Report.pdf<br /><br />Anyway, enjoy the blogAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-83827126149647136342013-03-27T10:24:49.842-04:002013-03-27T10:24:49.842-04:00Hi, sorry for the late response; I was away for a ...Hi, sorry for the late response; I was away for a couple of days. Um, that's a good question. I still like most of the stocks I mentioned here but they are mostly financials / banks / insurance companies. <br /><br />But I can't really tell you which basket to own or anything like that as I do tend to shift around according to valuations. <br /><br />Any company with good managements that allocate capital well with a history of outperforming will probably continue to do well, like BRK, L, MKL etc... <br /><br />Thanks for reading. <br />kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-87793983773644293792013-03-24T10:50:04.270-04:002013-03-24T10:50:04.270-04:00Just a brief elaborating.
1. I can handle the risk...Just a brief elaborating.<br />1. I can handle the risk, so if the stock falls 50 % it is not a problem for me economically. So just give the stocklist with the stocks you expect to give the highest returns. (Should probably say risk adjusted return)<br />2. I'm thinking 10 years ahead. So it's a long term buy i'm looking for. (I can't see one year ahead)<br /><br />Best regards<br />MikkelAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-8892220617478702142013-03-24T10:43:24.412-04:002013-03-24T10:43:24.412-04:00Hi kk
Read a lot of your post and I really like t...Hi kk<br /><br />Read a lot of your post and I really like the way you think and there seem to be a lot of knowledge behind your thinking. <br />I'm looking to make an addional investment to my stock portfolio and don't have the time to analyze hundreds of stocks. So I was thinking about looking into stocks that has been pre-analyzed by you. <br />So I was hoping I could get you to give me your top 3 best value stock buys? I would like to have them prioritized. <br />You don't have to elaborate or anything (if you do, it would be great). A simple list will do.<br /><br />Anyways. Thanks for a great blog.<br /><br />Best regards<br />Mikkel /DenmarkAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-1432325731179826502013-03-19T08:24:21.583-04:002013-03-19T08:24:21.583-04:00Another one you may want to add to your list is Ca...Another one you may want to add to your list is Canadian company Power Corp (POW.TO, PWCDF). It's a bit of a complex structure, but the main earnings generators are Great West Life and Investors Group. Great West recently bought out Irish Life for a good price and is now a major player in this recovering economy.<br /><br />This story from the Globe and Mail was written in 2011, but is still relevent:<br />http://www.theglobeandmail.com/globe-investor/investment-ideas/power-corp-shows-buffett-how-its-done/article589406/<br /><br />Plus, the nice thing about Power Corp is you also receive a good dividend yield of 4.3%.BB Canadahttps://www.blogger.com/profile/04765452269851135232noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-25810680924769571412013-03-16T01:29:00.001-04:002013-03-16T01:29:00.001-04:00Hi KK,
Great post. Your blog is one of my favorit...Hi KK,<br /><br />Great post. Your blog is one of my favorites in the online value investing community. <br /><br />Anyone who would say Markel's combined ratio is phony really just doesn't understand this company. Its reserve releases are largely offset by unnecessary additional reserving during each year, so it's really like taking money out of one pot and putting it in to another. It (roughly) nets out. <br /><br />If it grows premiums at a decent pace it could actually harm its GAAP earnings because the unnecessarily established reserves will exceed prior years' reserve releases. <br /><br />Although Markel doesn't explicitly state this, conservative reserving can be a smart move because it allows the company to defer paying taxes on what it would otherwise record as profit, giving it an additional - albeit much smaller - form of float to earn interest on.<br /><br />Tom Gayner is a great investor and should do very well for Markel shareholders over time. He's a really swell guy.<br /><br />Best wishes,<br /><br />Scott HallScott Hallnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-46773605403058591112013-03-15T15:00:36.034-04:002013-03-15T15:00:36.034-04:00Ok, In fact, I am also interested in the stock bec...Ok, In fact, I am also interested in the stock because of the TARP warrants, not only Berkowitz's position. The only (but hugely important) issue that I have is the book value quality.<br /><br />ThanksAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-73599714682072131892013-03-15T11:27:11.491-04:002013-03-15T11:27:11.491-04:00Hi,
Thanks for the comment.
AIG is certainly an...Hi,<br /><br />Thanks for the comment. <br /><br />AIG is certainly an interesting situation. There are some interesting things about AIG floating around in terms of analysis; it is a popular hedge fund long now. I don't have any particular insight into their reserves, though, other than their reputation of having been aggressive in writing policies over the past few years. I have no idea if that is the case now. <br /><br />Anyway, I may post about AIG in the future. kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-28482656635142758332013-03-15T04:44:22.675-04:002013-03-15T04:44:22.675-04:00This is the first comment I make in this blog alth...This is the first comment I make in this blog although I've been following it for quite some time.<br /><br />Please keep the hard work because your posts are so well thought.<br /><br />Congrats!<br /><br />P.S.: It would be great to hear about AIG and its reserves. It would be great to hear your opinion.<br />Berkowitz's huge position is what I find more interesting.Anonymousnoreply@blogger.com