MOTLEY FOOL REPORT: FOR PIONS ON A SUCKER LIST THAT DON'T DO THEIR OWN RESEARCH
This stock shows remarkable similarities to Buffett's Berkshire Hathaway. And it's already a step ahead of where Berkshire was in the '70s! About 5 years ago, you could've gotten into this little company for around half as much as you can now. Yet, as impressive as this stock has been recently, I project that IT WILL DOUBLE AGAIN WITHIN JUST A FEW YEARS. And now is the best time to get in! With just a $3.2 billion market cap in an industry where competitors are routinely as large as $40 billion and up.
Its policy is to pile up cold, hard cash -- as I said, over $375 million of it -- and then, put it only in value investments with even more hidden assets that can be used to grow and fortify the bottom line. Like Berkshire, the heads of this company would rather sit back and let their investments grow, rather than take risks in companies they and their shareholders don't understand.
It's a great sign when insiders put their money where their mouths are
Total insider holdings are worth more than 10%, or over $320 million. So what does this company do? You may've guessed by now...
They're in the insurance business -- just like Berkshire was. Boring stuff, I know. But that's why we like it -- it's hugely profitable! And that's a very good thing...
What makes this business so lucrative? Well, one of the most important secrets to creating wealth in the insurance business is using something called "the float." The float is a stash of cash that insurance companies hold after they bring in lots of premium payments. And before they have to dish out on any big claims...
Think about someone handing you some money and telling you to go ahead and place a few bets with it. And when you double the original amount, you keep the profits. That's one of the keys to the insurance business.
Only difference is, this company doesn't make bets. In fact, they barely risk anything at all. Instead, they hunker down until a spectacular bargain comes along. Just like Berkshire:
This company rarely takes risks and never plays the typical Wall Street game. Yet it keeps on growing its net worth at a 20% clip every year. Just think if you could do that with your own personal accounts every single year... Last year, net income for this company was up over 30%. But just as Buffett says, a good company isn't a slave to Wall Street earnings estimates. It's much more important to focus on long-term wealth creation. When the time is right, this company uses its impressive cash war chest to snap up companies with a shared vision that are selling at distressed prices. Then it uses the hidden assets in these companies to fuel its incredibly successful profit machine. This company just keeps making its shareholders money. This isn't theoretical. They're actually doing it -- quietly building an empire the same way Buffett built Berkshire.
They're succeeding by zeroing in on building real net worth. Or what's called "net tangible asset value," or NTAV.
Don't worry about the terminology. I can explain it to you very simply just by asking you a simple question: When you pay for a stock, wouldn't you like to know what it's actually worth?
How to get real cash back every time you buy a stock
This company's real wealth -- if it ever had to sell everything, pay off all the bills and pocket the rest -- gives you the equivalent of $165 cash in pocket for every single share you own.