We bought this stock as a defensive investment because we wanted to enter into the insurance sector. WRB made a correction from 61 and we decided to buy this stock.
According to simplywallst this stock is significantly undervalued.
We are aware that such discounted cashflow models are not an exact science but the insurance sector is generally a stable and dividend paying sector, which could help our portfolio as a counterweight to the more speculative positions.
The debt level of the company is healthy and they reduced their debts over the past 5 years.
“Big Money” is invested as well as the founders family which is always a good sign. Sitting with the big boys at the table isnt that bad.
At 50ish level there is more technical support, we do not expect miracles but we do not expect bad surprises as well. In our category this stock is just another well established company in an interesting sector to hold for several years and to sell part of our stock as covered calls, time will tell the story.