NWLI 13-F Filers - Westport and Tweedy Please Read
Well, I can think of one more reason. That is that management may think that it is not proper for them to have any role in determining the market price of the stock. That is, that the market is the only proper entity to determine the price. I have some sympathy for this kind of reluctance to meddle in the pricing of the stock. However, when a well run, profitable company that does its accounting properly is priced at less than 40% of book value, I think it would be to the benefit of shareholders to buy stock back on the open market.
It is much more common for managements to buy back stock at very high prices, relative to book value, during boom times in the economy. I would view the current situation to be a failure of public investors to price NWLI correctly. That is partly due to the market's fears of owning most insurers and other financial stocks. We are the few lonely, brave investors who are willing to risk our capital waiting for the rest of the investment public to come to their senses. May our wait not be too lengthy.