Spamdex - Spam Archive

Report spam

Send in your spam and get the offenders listed

Create a rule in outlook or simply forward the spam you receive to

Also in

The Global Guru: The 'Baby Berkshire' Trouncing Buffett

If you are on a mobile device or cannot view the images in this message view this email in your web browser.
To ensure future delivery please add to your address book or contacts.

Facebook Facebook
The ‘Baby Berkshire’ Trouncing Buffett

$646 Silver Set Soars to $86,562!
At its highest levels of quality, American Silver Eagles can achieve incredible values -- enough to turn a $646 set of coins into one worth $86,562! The secret is quality. Savvy collectors always chase after the best of the best.

Today, you can reserve certified perfect 2016 Silver Eagles ahead of their release for as little as $49.95!

Click Here Now!

Warren Buffett is having a lousy year.

Shares of Berkshire Hathaway (BRK-B) are down 9.69% so far in 2015. That means Berkshire Hathaway is trailing the Standard & Poor’s 500 index, which has eked out a gain of 2.85% this year, mostly through dividends.

In contrast, my top Buffett clone -- Markel Corporation (MKL) -- a recommendation in my Alpha Investor Letter newsletter -- is hitting the ball out of the park. Markel is up a remarkable 34.38% in an otherwise frustrating 2015.

Markel’s strong performance is nothing new. Markel has been outperforming Berkshire Hathaway since the late 1990s, just as Berkshire Hathaway’s stellar returns began to flag.

Global Guru MKL 1208

Markel’s Berkshire Hathaway-Like Business Model

Markel’s “Baby Berkshire” nickname is particularly apt. Boasting less than 4% the market capitalization of Berkshire Hathaway, Markel offers a Buffett-style investment model that boasts the best of Berkshire Hathaway combined with the nimbleness of a mid-cap stock.

Founded in 1930, Markel is a specialty insurance holding company with a profitable underwriting and investment strategy modeled on Berkshire Hathaway.

Markel even holds a shareholder brunch in a conference room at the Hilton in Omaha, Nebraska, each year -- on the day after Berkshire Hathaway’s annual meeting.

Markel has insured everything from classic cars, boats and event cancellations to children’s summer camps, vacant properties and new medical devices. Markel even insured the red slippers Judy Garland wore in "The Wizard of Oz." And no other insurance company has insured show horses for more than 50 years.

Markel’s laser-like focus on specialty insurance has made it a star performer in the insurance business. Over the past 10 years, Markel has averaged a “combined ratio” of just under 96%. As long as that number is under 100%, Markel is taking in more money in premiums than it is paying out in claims. That is rare among insurance companies.

Markel and its ‘Float’

Buffett critics have made a big deal of Berkshire Hathaway’s “unfair advantage” due to its ability to invest the “float” it receives in insurance premiums.

[Tomorrow]: THIS Biotech Is Poised to Spark a New $230 Billion Market

A major breakthrough is about to disrupt the biotech sector starting January 1, 2016. CNBC is calling this revolution “Medicine’s Next Frontier.” And by our estimates, billions will be up for grabs. As a result, we believe one innovative company could run up 286% or more over the coming months. That’s why the Oxford Club has assembled a team of experts to present a FREE online summit tomorrow... so YOU can profit from this coming market disruption.

Our experts will name company names and specific ticker symbols too. When you register for this free online summit, there’s no obligation and nothing to buy. Find out what it’s all about and claim your spot
by clicking right here.

Click Here Now!

To understand the “float,” you need to understand how the insurance business differs from every other business.

Selling property-casualty insurance is tough work. Industry competition is fierce, and the products offered by various companies are pretty much identical. And the insurance industry’s record of assessing risks -- that is, its ability to earn money on policies sold -- is terrible. State Farm, the largest insurer in the United States, has lost money on insurance policies for nine of the past 12 years.

At the same time, insurance is the only business in the world where people throw money at a business “for free.” Insurance companies take the premiums paid by policyholders -- the money that belongs to policyholders from premiums that are reserved for future claims -- and invest them into a range of financial assets.

This is the infamous “float.” Insurance companies can do this, even though they don’t really own most of the money they’re investing.

Insurance companies also enjoy huge tax advantages. After all, insurance companies don’t have to pay taxes on the premiums you pay them because they haven’t yet “earned” any of the money.

Think of the float as a massive tax-free loan that bears no interest and doesn’t have to be paid back.

Buffett Disciple, Tom Gayner

Markel’s core specialty insurance business is profitable and, much like Berkshire’s, it generates a significant float.

And that float is essentially free money for Markel to invest for the sole benefit of its shareholders.

Yet, few insurance companies dare to invest a large percentage of their portfolio in stocks.

Most stick to fixed income instruments to make sure they can always pay claims.

In contrast, Markel invests a much larger portion of its float into stocks. This means higher returns for the investment portfolio over time -- although this comes at the price of higher volatility.

Tom Gayner, Markel’s long-time chief investment officer, runs the company’s investment portfolio.

Not surprisingly, Gayner is a very public disciple of Warren Buffett and his philosophy sounds a lot like that of the “Oracle of Omaha” himself.

Gayner invests in equities using a simple four-point filtering process based on the principles of value investing. Gayner has said he looks for:
  • Profitable companies that produce high returns on capital
  • Management that is both talented and honest
  • Businesses that have sizable reinvestment opportunities to become compounding machines
  • A fair price
Although Markel’s stock portfolio is much less concentrated than that of Berkshire Hathaway, Gayner’s commitment to Buffett’s principles has delivered even better results.

Cuba’s “Furious Decade” Starts Now
Right now, there’s a game-changing global development in the works that could make you very rich. Six months of research from a world-renowned economist has uncovered four hidden drivers that will likely spell the end of the U.S. trade embargo against Cuba. What’s more, this brand new report details five specific investments you can make to play this situation for massive profits.

But the best part is that all of these opportunities are on track to unfold as early as next year… and now is your time to get in before they really take off. Click here now for access to this list of plays you can make for a chance at returns of at least 6,588%!

Click Here Now!

Mostly under Gayner’s watchful eye, Markel’s book value per share has compounded at 20.1% per year since its initial public offering (IPO) in 1986. That’s double the S&P 500 return of 10.3% and far above Berkshire’s 16.7% rate.

Over the past 20 years, Markel shares have risen from $72 to $917. With Gayner himself holding 33,000 shares of Markel’s stock, worth more than $30 million, he has a lot of skin in the game.

Why Berkshire May Prevail in 2016

With Berkshire (BRK-B) and Markel (MKL) so similar, the divergence in performance between the two companies in 2015 is surprising.

Part of it may be that Berkshire is just getting too big for its britches. The uncomfortable truth is that Berkshire’s returns have been steadily falling over the past 20 years, while, for Markel, size has not been a problem.

But the clue behind 2015’s diverging performances may lie in the amount that investors are willing to pay for each company’s book value.

Markel’s current Price to Book (P/B) ratio stands at 1.66, close to its long-term, 28-year average P/B Ratio of 1.73. That’s a contrast to the 1.31 P/B ratio it was trading at when I recommended it in July 2014. By that measure, Markel is close to fully valued.

By contrast, Berkshire is trading at a book value of only 1.34. That’s the lowest it has been in nearly two years, down from 1.57 a year ago.

My back-of-the-envelope calculation shows that if Berkshire traded at its historically average valuation, it would be trading at $157 -- and not at $134 per share. That implies a 17% upside in Berkshire from current levels.

Whatever the short-term outlook, it’s hard to go wrong with either stock.

With either Berkshire or Markel, you get a consistently profitable insurance company, with one of the best investment management teams around and a shareholder-friendly long-term management.

Still, if I had to pick one stock for the future, it would be Markel.

Size and track record count.

And Markel is beating Berkshire on both counts.

Disclosure: I own Markel and Berkshire in my personal portfolio and on behalf of clients at Global Guru Capital.

In case you missed it, I encourage you to read my Global Guru column from last week about the wisdom of Warren Buffett's business partner, Charlie Munger. I also invite you to comment in the space provided below my Eagle Daily Investor commentary.

Nicholas Vardy
Nicholas A. Vardy
Editor, The Global Guru

Subscribe to my Newsletter and Trading Services.
Follow me on Twitter.
Check out my Blog.
To ensure future delivery of Eagle Financial Publication's emails please add the domain to your address book or contact list.

This email was sent to because you are subscribed to the Nicholas Vardy's The Global Guru List. To unsubscribe or update your delivery preferences, please click here.

If you have questions, please send them to Customer Service.

Eagle Financial Publications - Eagle Products, LLC. - a Caron Broadcasting Company
300 New Jersey Ave. NW, Suite 500 | Washington, D.C. 20001

© 2015 Eagle Financial Publications. All rights reserved.


All titles, content, publisher names, trademarks, artwork, and associated imagery are trademarks and/or copyright material of their respective owners. All rights reserved. The Spam Archive website contains material for general information purposes only. It has been written for the purpose of providing information and historical reference containing in the main instances of business or commercial spam.

Many of the messages in Spamdex's archive contain forged headers in one form or another. The fact that an email claims to have come from one email address or another does not mean it actually originated at that address! Please use spamdex responsibly.

Yes YOU! Get INVOLVED - Send in your spam and report offenders

Create a rule in outlook or simply forward the junk email you receive to | See contributors

Google + Spam 2010- 2017 Spamdex - The Spam Archive for the internet. unsolicited electric messages (spam) archived for posterity. Link to us and help promote Spamdex as a means of forcing Spammers to re-think the amount of spam they send us.

The Spam Archive - Chronicling spam emails into readable web records index for all time

Please contact us with any comments or questions at Spam Archive is a non-profit library of thousands of spam email messages sent to a single email address. A number of far-sighted people have been saving all their spam and have put it online. This is a valuable resource for anyone writing Bayesian filters. The Spam Archive is building a digital library of Internet spam. Your use of the Archive is subject to the Archive's Terms of Use. All emails viewed are copyright of the respected companies or corporations. Thanks to Benedict Sykes for assisting with tech problems and Google Indexing, ta Ben.

Our inspiration is the "Internet Archive" USA. "Libraries exist to preserve society's cultural artefacts and to provide access to them. If libraries are to continue to foster education and scholarship in this era of digital technology, it's essential for them to extend those functions into the digital world." This is our library of unsolicited emails from around the world. See Spamdex is in no way associated though. Supporters and members of Helping rid the internet of spam, one email at a time. Working with Inernet Aware to improve user knowlegde on keeping safe online. Many thanks to all our supporters including Vanilla Circus for providing SEO advice and other content syndication help | Link to us | Terms | Privacy | Cookies | Complaints | Copyright | Spam emails / ICO | Spam images | Sitemap | All hosting and cloud migration by Cloudworks.

Important: Users take note, this is Spamdex - The Spam Archive for the internet. Some of the pages indexed could contain offensive language or contain fraudulent offers. If an offer looks too good to be true it probably is! Please tread, carefully, all of the links should be fine. Clicking I agree means you agree to our terms and conditions. We cannot be held responsible etc etc.

The Spam Archive - Chronicling spam emails into readable web records

The Glass House | London | SW19 8AE |
Spamdex is a digital archive of unsolicited electronic mail 4.9 out of 5 based on reviews
Spamdex - The Spam Archive Located in London, SW19 8AE. Phone: 08000 0514541.