2019年1月31日星期四

This is like buying Berkshire Hathaway but with higher upside...


It has outperformed Berkshire by 1,050%

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Money Morning eLetter Click here to access your top-25 ranked stocks!
January 31, 2019

"Baby Berkshire" Just Earned Our Highest VQScore

Dear VQScore Member,

This might be the most exciting stock I've brought you yet...

This company operates its core business almost exactly like Berkshire Hathaway Inc. (NYSE: BRK.A). But there's one important difference. The stock will make you way more money over the long haul.

Since 1990, this stock has outperformed Berkshire by a whopping 1,050%. And it can easily repeat this outperformance over the next 30 years.

This is a well-run insurance company that invests its float and profits in undervalued securities and operating businesses - just like Berkshire.

In fact, it's often referred to as "Baby Berkshire."

When valuing insurance companies, the most important thing to look at is how quickly the business is growing its book value. It shows the company's ability to pay off outstanding insurance claims.

And I expect this business, Markel Corp. (NYSE: MKL), to grow book value by 10% to 14% annually for the foreseeable future.

This is much faster than the 2% to 4% I expect Berkshire to grow its book value. There's nothing wrong with the way Berkshire does business - it's just hard for a $500 billion company to grow any faster.

Markel, on the other hand, only has a market cap of $14 billion (less than 3% the size of Berkshire).

As Markel's book value continues growing, I expect shares to jump at least 50% to $1,500 in the next year or two.

Sincerely,

Kyle Anderson
Head of VQ Research

P.S. Here are the three best dividend stocks to buy today.

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