Interesting news….http://news.morningstar.com/articlenet/article.aspx?id=780584
This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.
We use cookies on this site to enhance your user experience. By clicking any link on this page you are giving your consent for us to set cookies.
More InfoYour subscription is paid through your PayPal account.
To update your credit card or cancel, please log in to PayPal.com, go to your automatic payments, open the Stock Gumshoe payment, and make changes there.
More information here: Paypal — What Is an Automatic Payment and How Do I Update or Cancel One?
Yes, they adjusted very quickly after the election — which surprised me a little, and has made some investors worry that Watsa is being a bit capricious after being bearish for a long time. I’m curious to see what happens next, and what they’ve done (if anything) with their deflation bets — it’s a well-run insurance company, but they’ve definitely suffered because of Watsa’s bearish positioning recently, which is one of the risks of an investment-focused insurance company like this (or like Third Point Re or Greenlight Re or, to a lesser extent, Markel). I like the company without the bearish hedge, and they’ve generally done very well over the long term, but it certainly doesn’t play as strategic a role in my portfolio without the bearish hedge so I’ll be thinking about that in the months to come.
I’m still thinking the bubble will burst sooner or later. What other bearish/defensive choices are out there?