Why We're Buying This Berkshire-Like Company

The following video is part of our "Motley Fool Conversations" series, in which senior analyst Matt Argersinger and analyst Paul Chi discuss topics from across the investing world.

Matt and Paul are bullish on energy stocks these days, so why are they investing some of their Streetfighter portfolio's cash in Alleghany, an insurance company? Simple. Not only is Alleghany one of the best-managed insurance companies out there -- with an investment portfolio that has doubled the return of the S&P 500 over the last 10 years -- it is also a big energy investor. A rebound in energy stocks will send Alleghany's book value soaring. That along with a higher multiple-to-book-value positions Alleghany to deliver market-beating returns for investors who buy today. Get their full take on Alleghany by watching the video below.

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At the time thisarticle was published Matthew Argersingerowns shares of Berkshire Hathaway and Alleghany and has the following options: long JAN 2014 $80 calls on Berkshire Hathaway, short JAN 2014 $80 puts on Berkshire Hathaway, short JUN 2012 $75 puts on Berkshire Hathaway, long JAN 2014 $65 calls on Devon Energy, and short JAN 2014 $65 puts on Devon Energy.Paul Chiowns shares of Berkshire Hathaway, Devon Energy, and Alleghany. The Motley Fool owns shares of Berkshire Hathaway and Devon Energy.Motley Fool newsletter services recommendBerkshire Hathaway. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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