Markel Stock: High-Quality At A Discount
Summary
- Markel stock trades at a significant discount to peers, despite strong investment income and improved underwriting, making it an attractive entry point for investors.
- The company’s investment portfolio, worth ~$30 billion, and Markel Ventures, valued at $6 billion, provide a substantial margin of safety.
- Markel has compounded book value at 11% annually and is expected to continue growing at low double-digit rates, despite earnings volatility.
- Investors with a long-term horizon should consider Markel for its low-risk growth potential and attractive risk-return tradeoff.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of MKL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.