Graham and Doddsville -- Value Investing In The New Era Message Board

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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era

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To: porcupine --''''> who wrote (881)	10/10/1998 5:25:00 PM
From: Freedom Fighter	Read Replies (1) of 1722

>>Wayne, what do you like about Mercury General?<< The word LIKE is appropriate here. Basically it's a high return on equity insurance company that earns profits on the insurance written. (no small accomplishment). These sorts of companies usually sell a substantial discount to the overall market. Let's call it 10x earnings over the long haul. As a high ROE, growing, and otherwise above average company in the industry, it should sell at some premium. In a low inflation and interest rate environment one could argue that the multiple should be even higher. Selling at 9+ time earnings, it's worth starting to accumulate in my view. I've never owned it before and haven't done a complete analysis. I'm getting my feet wet here in what appears to be a very fine company. Wayne Value Investor Workshop members.aol.com

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