With that in mind, let's take a closer look at Markel and see what CAPS investors are saying about the stock right now.
Glen Allen, Va. (1930)
Property and casualty insurance
Chairman/CEO Alan Kirshner
Return on Equity (average, past 3 years)
Cash / Debt
$2.7 billion / $2.3 billion
Meadowbrook Insurance Group
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.
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.
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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.
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