You definitely understand the game. High ROIC, reinvestment opportunities at high ROIC, high quality management - capital allocation team, etc. However, it has been my experience that good management is not an enduring moat. A great jockey on an average horse is usually not a good wager. Not saying Markel has no redeeming qualities, but something to consider against investing in VOO.
I am holding a few MKL stocks since a couple of years and I wasn’t always super happy about the stocks performance. This video confirmed my long term vision for the stock. Thanks 😊
This is really a great channel Good research ✅ Thank you for doing research and providing such good insights. I discovered your channel today and really loved the content ❤
Great video! Your point at the end of the video why you expect them to beat the market because of the growth of their venture business is very interesting and also the comparaison with Berkshire was a great point with the example if ULTA. Would be interesting to see in your analysis cash flow growth and stock based comp.
Sounds like a great company. My biggest issue with MKL is Circle of Compentence. It's not an easy to understand nor an easy to evaluate. It will be in my "too-hard-to-understand" pile.
Thank you for an excellent presentation and introduction to Markel. A good investment to slowly average into for a young person with 25+ years to retirement.
rather hold VOO, MKL has a 9.8 anualized returns in the last 10y. VOO outperforms thta, is safer and pays dividends. This one is not a compounding machine, BRK is way more consistent and a better investement overall
@@Allen-L-Canada you Saw this one wrong, the price of MKL on the 2nd Of September 2014 was 665$ or a 140% return to today, VOO with reinvested dividends is 241%
Do you look at ROCE as a metric or only ROIC? Their ROCE is very volatile and fairly low as well in the last 10 years, not sure what explains this one.
This metric is tough to use for insurance companies because they own a lot of securities which fluctuate in value and every quarter they have to report the unrealized gains and losses. So net income can vary greatly
I plan on buying a share in my tfsa in January when I get more space. Hoping the stock stays low or goes lower in the mean time. Hoping to get under $1600
Really a brilliant business model. Their book value will only expand over the long term with the compounding growth of their equity portfolio, and in the mean time they have great margins and billions in free cash flow from operations to fund growth through strategic capital allocation and buying back shares. Return on capital, equity and assets. It’s kind of akin to buying a fund except you get the benefit of having the capital structure of being a shareholder in a publicly traded company itself.
@@zamonischeswunderrind1353 There’s always risk. Berkshire has seen 30-50% drops during crashes and recessions. At the end of the day companies like this have a very tight knit shareholder structure, people don’t trade companies like Markel they hold for the long run because they’re pretty much fully committed to retaining & growing shareholder value. They have over 200 dollars of free cash flow per share. There’s only a handful of companies who can claim that lol
I read most of the people here not interested in Markel which make me more inclined to study more abt Markel. Its good when the average joe ignored a good company, it gives us opportunities to research deeper and potentitally buying in at value price.
Also, i had an idea in mind: what if you just bought the highest market cap stock at any given time? How would you have performed in the last 50 years? The strategy would imply a portfolio which is 100% concentrated on the highest market cap stock, which would then be sold whenever a new company achieves the highest market cap. Think of it as an S&P 1 index rather than an S&P 500 index. The main element though is selling and going all in AS SOON as a new stock achieves the highest market cap, whether that's monthly, yearly, etc as it would give you more chances of high yearly returns. I would highly appreciate if you could backtest this idea! Love the content.
Someone recently did a reddit post on this ... I think you would have outperformed with annual returns of like 22% or something. I'm not sure over what timeframe though
Yes that’s where I got the idea from. Saw the post and wanted to ask you about it. Could you do a backtest on it? If true it could be a strategy to consider. 22% is crazy.
This can be done using the back test feature on my website. If you do a ranked list back test, with 1 holding, rebalancing weekly/monthly, and just use market cap as the rank 🙂
Historically holding the largest companies on the market means you would underperform the overall market. The last 10 years have been an outlier due to the magnificent seven. Look back and see who the largest companies have been, and see where they are now. It think the main issue is that the bigger a company gets the harder it becomes to pivot when it's time to. Kodak didn't pivot on digital cameras, Intel didn't pivot on UV lithography, etc. You can take Apple for a current example, it's been at the top based on it's smart phone boom period, but it can't seem to come up with a new product idea that recaptures that growth.
@@investingsucks I thought insurance companies were regulated by the states they write business in and are limited to their % of equity holdings so if the stock market tanks they can still pay claims. The 37% seems like a high% of equities allowed in a portfolio.
A lot of people were outraged when they saw viral videos on social media about $18 Big Mac combo. If I am correct, this occurred only in a few locations, one of which was a truck stop. I live in California, one of the most expensive states, and I could have gotten a Big Mac Combo for $6 on the app at the time. I suppose everybody needs a villian to target. With McDonald's $5 promotion in the attempt to drive up sales, I expect the share price to bounce back. McDonald's is one of the "hold forever" stocks I own. Thanks for the great analysis on MKL. I only learned about it recently, and you've made a good case here. Another Canandian company I started a new position in recently is Dollarama. They've seem to doing well in contrast to dollar stores struggling in the U.S. I wonder if you've heard of it, and what's your view on the company. I just want to say that I appreciate all the hard work you've put into making your videos. Cheers.
The $5 deal is a temporary tailwind that will lose steam over time. GLP-1 drugs are not temporary, and they will crush demand for McDonald’s and other companies that rely on obese people as their primary customer demographic.
not the same kind of expense ratio. expense ratio when it comes to funds is the price you pay to own the ETF. the expense ratio for an insurance company is the % of premium collected that is paid out as operating expenses.
While I like your stock pick, the analysis was verrry superficial. No look at where the company actualy invests in. No cash flow analysis, no look into the balance sheet, not comarison to peers. A lot of missed opportunities here. Maybe next time would be helpful to see those numbers and hear your thoughts.
I've learned from experience that I can't go too in depth like that on RUclips. Once the video goes over 20mins and gets technical, people stop watching. So to your point, it's not that I haven't done that analysis, it's just I didn't show all of it here. Feel free to email me if you have more in-depth questions on Markel
I don't understand what's the point of investing in it if it doesn't beat spy or Voo. I see comments from people here who are still interested in it, I ask myself - are they sheep?
@@investingsucks Let's be clear, the video you made is high quality. I'm just personally less interested in the stock. And I found no reason to invest in it.
I will match my DRIP stocks and their returns against yours. I update my 13 DRIP stocks every Friday. I have taken my advice from Clason (The Richest Man in Babylon) Warren Buffett & now deceased Charlie Monger. We are long term investors who use dollar cost averaging, tie, compound interest, the 10% rule, and leveraging our assets for retirement. I hope you are both health and safety in your future.
markel has underperformed the market. berkshire hathaway dumped their entire position in it. if you want to underperform the s&p 500, by all means buy markel.
@@investingsucks not sure, because he might be gone tomorrow. Apple's walled garden will be there if Tim Cook dies, or Amazon's dominance is still there after Bezos left. Good management and moat are very different things. Also whoever is MKLs CEO, s/he is not equivalent to Buffet.
Management isn't just one person. When it comes to these kinds of companies that grow through making sound investments it's more about their selection process and track record
Cool video, thanks The video makes a compelling case for long-term investments. If you’re looking for a “buy and hold forever” stock, $WKSP is worth considering. It’s a microcap with growth potential, especially in the innovative sector it operates in. A good fit for a long-term portfolio if you believe in its future!
@@angrycanadian6979 i do swing trading with stocks that I love just in case they drop I add to positions and wait. For example, I sold my Tesla trade in Wednesday for a gain and entered Exxon Mobile.
So many factors at play with Marquel! I’m curious, what are your thoughts on investing in companies with a lower beta but higher recent performance? 📉📊
You definitely understand the game. High ROIC, reinvestment opportunities at high ROIC, high quality management - capital allocation team, etc. However, it has been my experience that good management is not an enduring moat. A great jockey on an average horse is usually not a good wager. Not saying Markel has no redeeming qualities, but something to consider against investing in VOO.
I am holding a few MKL stocks since a couple of years and I wasn’t always super happy about the stocks performance. This video confirmed my long term vision for the stock. Thanks 😊
Well put video.
I feel like your production quality is increasing 💪
This is really a great channel
Good research ✅
Thank you for doing research and providing such good insights.
I discovered your channel today and really loved the content ❤
Great video! Your point at the end of the video why you expect them to beat the market because of the growth of their venture business is very interesting and also the comparaison with Berkshire was a great point with the example if ULTA. Would be interesting to see in your analysis cash flow growth and stock based comp.
Totally agree, I hold MKL for my kids account. Been in since 400.
A great video, thank you. Its been on my watch list for a while, thank you for reminding me! Now I wonder what is your #2 and #3 ? Lol
Sounds like a great company. My biggest issue with MKL is Circle of Compentence. It's not an easy to understand nor an easy to evaluate. It will be in my "too-hard-to-understand" pile.
Nice analysis. I think you should check IFC as well. Another great compounder!
Thank you for an excellent presentation and introduction to Markel. A good investment to slowly average into for a young person with 25+ years to retirement.
Great analysis! will add to my Watch list
Cheers, as a Canadian I will look into the best way to hold this company
I just hold it through a USD TFSA
Why USD?
Im assuming he means its in a tfsa account but it trades in usd
rather hold VOO, MKL has a 9.8 anualized returns in the last 10y. VOO outperforms thta, is safer and pays dividends. This one is not a compounding machine, BRK is way more consistent and a better investement overall
Past returns don't indicate future performance
@@investingsucks that is what every person that underperforms the market says, "this one is the one" 😂
@@Allen-L-Canada you Saw this one wrong, the price of MKL on the 2nd Of September 2014 was 665$ or a 140% return to today, VOO with reinvested dividends is 241%
@@pedrobelo0454 you are right. How do you see the reinvested dividends?
PE of 10 vs 25
Do you look at ROCE as a metric or only ROIC? Their ROCE is very volatile and fairly low as well in the last 10 years, not sure what explains this one.
This metric is tough to use for insurance companies because they own a lot of securities which fluctuate in value and every quarter they have to report the unrealized gains and losses. So net income can vary greatly
@@investingsucks great thanks for the explanation. Have you looked at MMC? I really like their business model for risk insurance
I plan on buying a share in my tfsa in January when I get more space. Hoping the stock stays low or goes lower in the mean time. Hoping to get under $1600
Really a brilliant business model. Their book value will only expand over the long term with the compounding growth of their equity portfolio, and in the mean time they have great margins and billions in free cash flow from operations to fund growth through strategic capital allocation and buying back shares. Return on capital, equity and assets. It’s kind of akin to buying a fund except you get the benefit of having the capital structure of being a shareholder in a publicly traded company itself.
But what will happen if we have again a flash crash? Lets say Markel have 25% less equity value for the insurance risks?
@@zamonischeswunderrind1353 There’s always risk. Berkshire has seen 30-50% drops during crashes and recessions. At the end of the day companies like this have a very tight knit shareholder structure, people don’t trade companies like Markel they hold for the long run because they’re pretty much fully committed to retaining & growing shareholder value. They have over 200 dollars of free cash flow per share. There’s only a handful of companies who can claim that lol
Why Markel over Brookfield Corporation? Is Markel easier to understand? Maybe a future video?
I read most of the people here not interested in Markel which make me more inclined to study more abt Markel. Its good when the average joe ignored a good company, it gives us opportunities to research deeper and potentitally buying in at value price.
Enjoyed this video. I really like Markel and Tom gayner
can u give us ur thought in ASML
Also, i had an idea in mind: what if you just bought the highest market cap stock at any given time? How would you have performed in the last 50 years?
The strategy would imply a portfolio which is 100% concentrated on the highest market cap stock, which would then be sold whenever a new company achieves the highest market cap. Think of it as an S&P 1 index rather than an S&P 500 index.
The main element though is selling and going all in AS SOON as a new stock achieves the highest market cap, whether that's monthly, yearly, etc as it would give you more chances of high yearly returns.
I would highly appreciate if you could backtest this idea! Love the content.
Someone recently did a reddit post on this ... I think you would have outperformed with annual returns of like 22% or something. I'm not sure over what timeframe though
Yes that’s where I got the idea from. Saw the post and wanted to ask you about it.
Could you do a backtest on it? If true it could be a strategy to consider. 22% is crazy.
This can be done using the back test feature on my website. If you do a ranked list back test, with 1 holding, rebalancing weekly/monthly, and just use market cap as the rank 🙂
Historically holding the largest companies on the market means you would underperform the overall market. The last 10 years have been an outlier due to the magnificent seven. Look back and see who the largest companies have been, and see where they are now. It think the main issue is that the bigger a company gets the harder it becomes to pivot when it's time to. Kodak didn't pivot on digital cameras, Intel didn't pivot on UV lithography, etc. You can take Apple for a current example, it's been at the top based on it's smart phone boom period, but it can't seem to come up with a new product idea that recaptures that growth.
This was a good video. I like the the buy and hold strategy on solid companies rather than being a riverboat gambler. 🙂
Me too
@@investingsucks I thought insurance companies were regulated by the states they write business in and are limited to their % of equity holdings so if the stock market tanks they can still pay claims. The 37% seems like a high% of equities allowed in a portfolio.
Do you think NIO will short-squeeze now?
No
In the end there is only Zuul
A lot of people were outraged when they saw viral videos on social media about $18 Big Mac combo. If I am correct, this occurred only in a few locations, one of which was a truck stop. I live in California, one of the most expensive states, and I could have gotten a Big Mac Combo for $6 on the app at the time. I suppose everybody needs a villian to target. With McDonald's $5 promotion in the attempt to drive up sales, I expect the share price to bounce back. McDonald's is one of the "hold forever" stocks I own.
Thanks for the great analysis on MKL. I only learned about it recently, and you've made a good case here. Another Canandian company I started a new position in recently is Dollarama. They've seem to doing well in contrast to dollar stores struggling in the U.S. I wonder if you've heard of it, and what's your view on the company. I just want to say that I appreciate all the hard work you've put into making your videos. Cheers.
The $5 deal is a temporary tailwind that will lose steam over time. GLP-1 drugs are not temporary, and they will crush demand for McDonald’s and other companies that rely on obese people as their primary customer demographic.
what about the expense ratio? Vanguard funds are extremely low cost for the investor
not the same kind of expense ratio. expense ratio when it comes to funds is the price you pay to own the ETF. the expense ratio for an insurance company is the % of premium collected that is paid out as operating expenses.
but what about USMV? it seems to have more liquidity.
US Men's Volleyball team isnt for sale
While I like your stock pick, the analysis was verrry superficial. No look at where the company actualy invests in. No cash flow analysis, no look into the balance sheet, not comarison to peers. A lot of missed opportunities here. Maybe next time would be helpful to see those numbers and hear your thoughts.
I've learned from experience that I can't go too in depth like that on RUclips. Once the video goes over 20mins and gets technical, people stop watching. So to your point, it's not that I haven't done that analysis, it's just I didn't show all of it here. Feel free to email me if you have more in-depth questions on Markel
I don't understand what's the point of investing in it if it doesn't beat spy or Voo. I see comments from people here who are still interested in it, I ask myself - are they sheep?
I pointed out in the video that since 2022 it has beaten SPY
@@investingsucks Let's be clear, the video you made is high quality.
I'm just personally less interested in the stock. And I found no reason to invest in it.
They are different from Berkshire in the sense that their performance is piss poor
I’m adding this company to my portfolio (TFSA) next week! Thanks for your video!
Remember, don't buy companies just because I do. I could be wrong here. Always do your own research 👌
I will match my DRIP stocks and their returns against yours. I update my 13 DRIP stocks every Friday. I have taken my advice from Clason (The Richest Man in Babylon) Warren Buffett & now deceased Charlie Monger. We are long term investors who use dollar cost averaging, tie, compound interest, the 10% rule, and leveraging our assets for retirement. I hope you are both health and safety in your future.
How about NVR?
Might cover this company at some point. Though I don't personally own them
@@investingsucks I don't think they've had a losing quarter in forever
What are some investing/finance books that have been really helpful for you?
Expectations investing, Accounting for value, Big debt crisis by ray dalio
@@investingsucks oh ok. Expectations is a good one. Will check out the other two. Would you say most of your learning comes from books?
Yeah learning the theory and fundamentals comes mainly from books. But eventually you gotta put it to practice
markel has underperformed the market. berkshire hathaway dumped their entire position in it. if you want to underperform the s&p 500, by all means buy markel.
Retirement funds in VOO and personal portfolio in VFLO and a bank yielding 7% dividends.
Claiming company has a moat because you think they have a good management is a bit sketchy
Do you think Berkshire Hathaway has a moat?
@@investingsucks not sure, because he might be gone tomorrow. Apple's walled garden will be there if Tim Cook dies, or Amazon's dominance is still there after Bezos left. Good management and moat are very different things. Also whoever is MKLs CEO, s/he is not equivalent to Buffet.
Management isn't just one person. When it comes to these kinds of companies that grow through making sound investments it's more about their selection process and track record
Not sure about the living standards in practice. Perhaps in theory.
You have some doubts on this?
Your a real winner LOL
I consider myself the Michael Jordan of RUclips investing videos
Cool video, thanks The video makes a compelling case for long-term investments. If you’re looking for a “buy and hold forever” stock, $WKSP is worth considering. It’s a microcap with growth potential, especially in the innovative sector it operates in. A good fit for a long-term portfolio if you believe in its future!
5 minutes to only say markel…
Time stamps
Angela Merkel ? 😂
I prefer trading
Day trading?
@@investingsucks swing
You prefer losing money?
@@angrycanadian6979 i do swing trading with stocks that I love just in case they drop I add to positions and wait. For example, I sold my Tesla trade in Wednesday for a gain and entered Exxon Mobile.
not very clever
Explain?
Checkout Kinsale Capital
simply DCA $TSLA - no index will outperform this strategy
The riskiest also
@@Finanzen367 Not if you consider Risk-Reward on a 10 year basis - Ask me again 2035
So many factors at play with Marquel! I’m curious, what are your thoughts on investing in companies with a lower beta but higher recent performance? 📉📊