I give up on my long-time holding of MKL. Markel has been described by Barron's as "An Insurer with Buffett-like Charms".
This company is a pretty good insurer. A lot of the stock's success is based on the company's growth of book value. Barron's (6/'08) notes, "Since going public in 1986, insurer Markel has doubled its net worth and stock price every five years or so." That's come from the Vice Chairman, Seven Markel, and the astute Chief Investment Officer Thomas Gayner.
MKL stock is down (but up from its lows) because book value is suffering since the shares of the many companies of which book value comprises are also down.
To me, I'm looking at MKL as a previously successful, Berkshire kind of operation that mirrors a mutual fund (given its holdings in public companies). I believe MKL will recover and sell closer to its 1.5-2x bv than its now 1.3x. That will occur when the underlying stocks appreciate. I've decided I'm not willing to wait for that to happen at MKL's current price.
I post because someone here might want to use my final selling of shares as a contrary indicator.
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I've started a small exploratory position in life insurance reinsurer, [t]RGA[/t]. Trades about at stated bv, p/e this year I guesstimate maybe 8. Profitable every year past ten, small dividend, d/e seems to be increasing. I like the fact the company has international diversity. Also, it's partially my bet that if/as life insurers have trouble with their earnings and/or underlying assets, they will lay off some or more of their policies to the reinsurers (e.g. Reinsurance Group America).
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