Why Markel Is Poised to Outperform

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty insurer Markel has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Markel and see what CAPS investors are saying about the stock right now.

Markel facts

Headquarters (founded)

Glen Allen, Va. (1930)

Market Cap

$7.2 billion


Property and casualty insurance

Trailing-12-Month Revenue

$3.4 billion


Chairman/CEO Alan Kirshner
President/CIO Thomas Gayner

Return on Equity (average, past 3 years)


Cash / Debt

$2.7 billion / $2.3 billion


Meadowbrook Insurance Group
Travelers Companies

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 2,935 members who have rated Markel believe the stock will outperform the S&P 500 going forward.   

Just last week, one of those Fools, All-Star Manlobbi, succinctly summed up the Markel bull case for our community:

Rather correlated to the S&P500 from one year to the next however (1) low cost leverage from float, (2) marginal equity outperformance, (3) leverage from invested unrealized capital gains and (4) initial price/book multiple of 1.15 versus historical average substantially higher-together will lead almost certainly to outperformance of the S&P500 over say 5 years.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Markel may not be your top choice.

After all, many investors are terrified about investing in financial stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.   

The article Why Markel Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Markel. The Motley Fool owns shares of Markel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading