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Markel Corporation (MKL) is a financial holding company for insurance, reinsurance, and investment operations. It has been described as the next Berkshire Hathaway which is interesting considering the fact that Berkshire Hathaway has invested $620 million dollars into the company. Markel has been a stock on my watchlist for quite a while, and in this article, I want to help one receive the information that they need to decide if Markel is a buy or not.
Markel currently has a p/e ratio of almost 11 which is really good for a company like Markel that has been experiencing pretty nice growth over the last few years. They currently have a market cap of almost 19 billion dollars, and they are undervalued according to Yahoo Finance's fair value meter.
Markel is known for its insurance segment, and I really like insurance as a business because of the fact that insurance companies have a massive amount of cash that one can use to invest. By investing an insurance companies float into private companies and equities instead of focusing on fixed income portfolios like most insurers, Markel has put itself in a good position for high growth.
Insurance companies have been a large key to many holding companies success including, for instance, Berkshire Hathaway because it gives the holding companies a lot more cash to work with when making investments. Markel has been able to create a lot of different business segments for themselves because of this.
I do believe that Markel could be a very good long-term play. With a great p/e ratio and the fact that Markel has seen great growth over the last few years and the fact that Markel has been posting great earnings, I think that Markel's stock has a lot of long-term potential. While I am not convinced that we are going to be entering a long-term recession, I think that Markel could be a great holding during a recession as I believe that insurance itself is recession proof. People and Businesses are always going to need insurance. It's not necessarily an optional purchase.
I also really like what Markel is doing in other business segments as well. They are providing equipment for banking services and food processing. I think that this will be very profitable for them. Markel also manages funds with third parties which can be very profitable as well. Markel does a lot of other things as well. They have so many amazing ventures that I think could make them very profitable.
As always, I will not tell anyone if they should buy this stock or not, but with all the information above in mind, I will very likely be adding this stock to my personal portfolio.
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