Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: MCsweet who wrote (44236)	9/6/2011 2:15:49 PM
From: Jurgis Bekepuris	Respond to of 78595

Sorry, but I don't use forward PEs and I do not have any clue about how correct they are as predictions. AHL and ENH are cheaper on some metrics. However, their historical business performance is worse than WTM. AHL had about 10% book value growth for 10 years, while ENH had 8% (12% per share book growth due to stock buybacks). This makes a huge difference compared to 13% due to compounding. Perhaps WTM's investment in Mike Burry contributed to their stellar results. :) If this is the case, we won't see it repeated. ;) On the other hand, if they spot other good investment opportunities, they may outperform AHL and ENH again. (Which does not matter if someone buys AHL/ENH for 1-2 year revert-to-median investment, but matters if they buy for 10 year investment).