W.R. Berkley: 17% Annual Gains Since 1974 And Smart Allocations (Less Focus On The Dividend)

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About: W. R. Berkley Corporation (WRB)
by: Oddmund Grotte
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Summary

Since the IPO in 1974, the share price of W.R. Berkley has increased 17% annually, 5% more than S&P 500.

Because of the owner-oriented management (almost like a family business), we have witnessed smart capital allocations, disciplined underwriting and decisions based on the best long-term returns.

However, valuation is on the highest level since 2006, and thus CAGR over the next 1-2 decades might not replicate the return over the last decade.

Summary:

I believe the spectacular performance of W.R. Berkley (WRB) can mainly be explained by four reasons: an owner-oriented management which is more or less run like a family business, smart capital allocation,