Nothing goes straight up. esgr had a big advance and the market is down so we are getting some consolidation. If the two aquisitions are half as good as they appear to be I see esgr at over $200 before the end of next year. But I assure you it wont go there in a straight line.
I got burned before buying insurance companies at high multiples to book value. Usually a decent entry price is 1x book value. Does anyone think that at 1.5x BV, even IF they get 20% and then returns decrease for a while and there is a multiple compression, one may be getting sub-par returns?