Why Markel Is Poised to Keep Popping

Updated

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

$4.8 billion

Industry

Property and casualty insurance

Trailing-12-Month Revenue

$3.0 billion

Management

Chairman/CEO Alan Kirshner
President/CIO Thomas Gayner

Return on Equity (average, past 3 years)

6.8%

Competitors

CNA Financial
Meadowbrook Insurance Group
Travelers Companies


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

On CAPS, 98% of the 2,824 members who have rated Markel believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, TempoAllegro, succinctly summed up the bull case for our community:

Markel is a powerhouse because as a specialty insurer, they both know how to underwrite and how to invest their float. Tom Gayner is doing a great job investing mostly in equities, and buying Markel today is essentially like buying a concentrated hedge fund run by Mr. Gayner, which is why Markel is often compared to Berkshire Hathaway . ...

It would seem to me that Mr. Gayner is both learning from his picks, meaning he is associating himself with the right potential mentors by going all in on those stocks, or buying companies with pristine balance sheets or irreplaceable assets or management teams. The sum total is that Markel, itself, becomes irreplaceable.

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

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

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway and Markel. The Motley Fool owns shares of Berkshire Hathaway and 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.

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