Legal monopolies all have similar traits: They have dominant market share, they have enviable pricing power, and given a lack of alternatives for customers, these companies likely have highly predictable and mostly recurring revenue streams. All of that means big profit margins that flow to the bottom line.
This Bermuda-based P&C insurance company made a series of strategic moves over the last few years, with the same objective in mind – to transition the company away from volatile and lower-margin insurance and reinsurance underwriting toward higher margin specialty insurance… And it’s worked.
Most people think that P&C insurance companies will do worse as risks grow. But, as Porter explains today, those people have it backwards. Insurance companies price risk. As risks increase, prices rise. And that means profits rise too.
One of the largest and wealthiest communities in the U.S. has been largely destroyed, with over 15,000 structures burned across 63 square miles, an area roughly the size of Washington, D.C. In today’s Daily Journal, Porter examines how this disaster plays out across the property-and-casualty insurance industry.
It’s commonly believed that Warren Buffett doesn’t buy tech stocks. But, as Porter writes today, that’s not true. In fact, Buffett’s largest personal investment was once into a start-up tech business.
In today’s Daily Journal, Porter gives readers the one, big secret to investing. It’s the only real, true secret of finance. And once you understand it, you’ll be a far better investor.
On the news that Warren Buffett bought shares of Domino’s Pizza, Porter reveals a list of other Big Secret portfolio companies the legendary investor should invest in.
In today’s Journal, Porter explains the simple reason why this one sector of the market always outperforms the overall market and always will: these companies get all of their capital for free.
While you may not be able to buy up billions in insurance-company float like Warren Buffett does, you can invest directly in well-run property and casualty businesses that are growing their float far larger than the overall market is.
While you may not be able to buy up billions in insurance-company float like Warren Buffett does, you can invest directly in well-run property and casualty businesses that are growing their float far larger than the overall market is.