👑 Buying This Insurance King
Our Berkshire Hathaway?
Hi Partner 👋
I’m Pieter and welcome to a 🔒 subscriber-only edition 🔒 of Compounding Quality.
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It’s time.
On Monday, we’ll add a new position to our Portfolio.
Here’s why I like our next buy so much:
✅A strong market leader in a niche (E&S insurance). They can invest their float and this results in exceptional growth
✅The company has the lowest combined ratio in the industry. This indicates they are more disciplined and a better insurance underwriter compared to their peers
✅Skin in the game. The founder is still the CEO and President. Today, he still owns 4.1% of the business
✅Healthy balance sheet, low capital intensity, and very attractive growth
✅Attractively valued thanks to the sharp stock price decline last Friday. I expect a yearly return of 14.0% in my model.
Are you curious about which company I am writing?
Let’s find out right away…