White Mountains Insurance: A Compounder With The Philosophy Of Berkshire

About: White Mountains Insurance Group, Ltd. (WTM)
by: Oddmund Grotte
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Long-time outperformer of the market.

Has not managed to reinvest capital from sales of assets, but buybacks have reduced outstanding shares from 9 to 3 million over the last decade.

Traditional insurance liabilities are replaced by more commission-based insurance, thus limiting potential liabilities.

Owner-oriented management, a long-term mindset.

The lack of a strategic plan makes the management free to contemplate available opportunities any given time which best serve the interests of the owners.

Introduction and summary

Everyone wants to find the next Berkshire Hathaway (BRK.A, BRK.B), at least a smaller version that has the possibility of returning above market returns.

White Mountains Insurance (NYSE:WTM