Insurance company stocks have performed quite well over the past couple of years despite market volatility driven by macroeconomic issues, inflation, and tightening monetary policy. Insurance companies are well-positioned to take advantage of rising interest rates and can be good hedges against inflation.
Over the last three years, specialty insurer Markel (NYSE: MKL) has returned 59%, outpacing the S 500's 36% total return. It offers policies for niches that many others won't touch and boasts appealing profit margins. It also has a significant investment portfolio where it can take advantage of higher interest rates and perform well during bull markets -- a quality that has helped earn it the nickname "Baby Berkshire Hathaway." Here's what you need to know about the business.
Insurance stocks can make excellent investments -- just ask Berkshire Hathaway CEO Warren Buffett. Insurance businesses are resilient because their products "will never be obsolete, and sales volume will generally increase along with both economic growth and inflation," according to Buffett.
Source Fool.com