White Mountains: With 2 Catalysts, I Am Upgrading It To A Buy

Summary

• I previously rated White Mountains Insurance as a hold, waiting for the price to fall below book value before buying.
• Recent market volatility and tariff announcements caused WTM to drop below book value, triggering my interest.
• WTM made two strategic investments: $150m in Broad Street, a commercial P&C insurance broker, and an undisclosed sum in Enterprise Solutions, an electrical contractor.
• WTM price has not recovered from the rest of the market, and I am looking into why this might be.
• I review my previous rating and share how I will play this.

Thomas Barwick/DigitalVision via Getty Images

I have written about White Mountains Insurance Group, Ltd. (NYSE:WTM) here, in an introductory piece, and on March 31, in an update following earnings.

In my most recent update, only two weeks back, I rated White Mountains as a hold, indicating that despite

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in WTM over the next 72 hours. 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.

The author is not an investment advisor and offers no advice here. He shares his analysis solely for the interest of readers.