Author Topic: MKL - Markel Corp  (Read 302794 times)

chrispy

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Re: MKL - Markel Corp
« Reply #720 on: March 17, 2019, 11:26:31 AM »
Nice letter and the ILS example is very informative on how the industry works.

During the Google talk, gayner mentions he likes reading John Wooden's books. Well, I bought and read one last week. After reading this annual letter it is clear that Wooden has been influential on Tom and his writing style


notorious546

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Re: MKL - Markel Corp
« Reply #721 on: March 19, 2019, 01:31:07 PM »
how do you actually value this thing now

stock portfolio + bond portfolio + multiple on wholly owned businesses less debt less capital gains on stocks owned?

cherzeca

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Re: MKL - Markel Corp
« Reply #722 on: March 19, 2019, 04:15:12 PM »
do you net out unrealized gains on brk?

Partner24

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Re: MKL - Markel Corp
« Reply #723 on: March 20, 2019, 06:44:17 AM »
Didn't like the letter. Too much "bla bla bla". Results have been so so over the last years. It was better before...more results, less words.
« Last Edit: March 20, 2019, 06:46:10 AM by Partner24 »

Cigarbutt

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Re: MKL - Markel Corp
« Reply #724 on: March 20, 2019, 08:01:45 AM »
how do you actually value this thing now

stock portfolio + bond portfolio + multiple on wholly owned businesses less debt less capital gains on stocks owned?
I assume you mean "...less debt less {tax-related} capital gains on stocks owned…?

The valuation method you refer to then is fine, is some kind of a two-column approach which can be useful and rapidly computed from reported numbers but rests on significant underlying assumptions. You need to assume that MKL will continue to earn consistent underwriting profits, superior investment results (bonds, publicly-traded equities and ventures) and to continue astute capital allocation.

Another simple way to value MKL is to use a band of P/B (from 1,5 to 1,7 for instance) again assuming that the future will continue to rhyme with the past.

Chuck Akre and John Huber (Base Hit Investing) periodically come up with assessments that help to determine the drivers behind the return on capital for MKL. Here's an example:
http://basehitinvesting.com/markel-mkl-a-compounding-machine/

CorpRaider

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Re: MKL - Markel Corp
« Reply #725 on: March 20, 2019, 10:39:38 AM »
Didn't like the letter. Too much "bla bla bla". Results have been so so over the last years. It was better before...more results, less words.

Yeah, I kind of agree.  Also bothers me that they keep buying back stock (apparently no matter the price).  Even offsetting the equity comp and/or other issuance to shrink the float a little. I know they have a brunch function in Omaha and everything, but that seems more like Apple "we like our stock at any price" than BRK. 
« Last Edit: March 20, 2019, 10:44:55 AM by CorpRaider »

Liberty

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Cigarbutt

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Re: MKL - Markel Corp
« Reply #727 on: April 11, 2019, 04:49:20 AM »
Two interesting perspectives here.
Whatever company policy documents available during the relevant time period, the personal relationship obviously raised a potential for significant conflicts of interest on many levels.
Markel is not a moral watchdog but why did the relationship remain undisclosed?

The amount of the monetary settlement will be related to the outcome of the internal review and outside financial investigation.
There is no "right" way to deal with this difficult situation but, so far with the evidence revealed, it seems to me that Markel did the right thing to contain the issue.

Broeb22

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Re: MKL - Markel Corp
« Reply #728 on: April 11, 2019, 05:45:59 AM »
It is surprising that anyone would think it is appropriate for two senior executives at any company to engage in an undisclosed personal relationship. Even if there was no "code of conduct" expressly prohibiting conducting a personal relationship on the job, Markel in my opinion would be justified in firing two senior executives over this conduct.

There is a lot going on in the document, some of which seems shady on Markel's part, but ultimately it is improper for two executives to have a personal relationship, in my opinion.


Spekulatius

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Re: MKL - Markel Corp
« Reply #729 on: April 11, 2019, 05:47:25 AM »
Two interesting perspectives here.
Whatever company policy documents available during the relevant time period, the personal relationship obviously raised a potential for significant conflicts of interest on many levels.
Markel is not a moral watchdog but why did the relationship remain undisclosed?

The amount of the monetary settlement will be related to the outcome of the internal review and outside financial investigation.
There is no "right" way to deal with this difficult situation but, so far with the evidence revealed, it seems to me that Markel did the right thing to contain the issue.

How they went about this ( changing ethics code retroactively, obtaining personal phone records) doesn’t seem that great to me. Of course the above link is the plaintiffs perspective.
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