P&C Insurance Economics 102: ROE drivers

I recently spend some time thinking and thinking about the ROE drivers of insurance companies. It was not a constant process but the understanding came to me as returns do: chunky and non smooth …

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We all look for quality businesses … at the same crowded places. I placed a bet on Qualitás elsewhere.

We are all looking for high quality businesses. Mostly this high quality is apparent (to everyone) only when the price has reached levels from where it is very much fun to look backwards. Many investors find high quality businesses within the ranks of well known companies and better known stocks (and ticker symbols). Maybe I have found something off the beaten path in less crowded markets …

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As investors and consumers shun Tobacco I wonder if now the time is right to buy?

At least in the developed world, more and more people either stop smoking or never begin in the first place. The (relative) number of people smoking traditional cigarettes declines as it goes against the big secular health trend. Could this current situation set the stage for profitalbe investments for many years?

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The world needs cheap high-quality generics. And investments! Hidden growing Krka might do …

I instantly liked the company’s fundamentals, and its foreign ‘hidden’ character. It seems to fly very much under the radar when international investors are concerned. I generally believe this to be a real advantage and can be a strong investor’s edge.

Looking at the company more closely, I liked the vertically integrated business model. But I had to be careful, since I bought into a competitor some years ago. And that investment turned out …

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