Investment Q&A

Q: It is down 16% since I bought it with most of the drop being just lately.
Is there something I am not seeing or hearing in the drop.
Thanks.

Q: In January, you compared FFH to BN/BAM, saying, "If rates fall it may be able to make more deals, AND, its assets owned already may increase in value further." Do you still hold to this glass-half-full outlook, or should we be concerned that the (dominant) insurance side of FFH's business will be penalized for a lowered outlook?

Q: Portfolio Analytics has suggested I reduce of my exposure in the Financial Services sector. My holdings consist of ACGL and BN at a full position plus AD.UN, BNS, and TD at a 1/2 position each.

My thought is to reduce BN to a half postion and sell AD.UN (after the current uptrend). I would keep ACGL for its International exposure and diversification. The banks, I just consider a long term hold

Is a full position of ACGL too high?

Is there a suggested balance amongst the subsectors?

Any other comments would be appreciated.

Thank you

Q: Any news that would explain the volatility today? It seemed to hit an all-time high and dropped 6% afterwards.

Q: I currently own a full position in Sun Life (5%) in my portfolio but would like to add to my insurance component via a Reinsurance firm. Would this be a complementary move or just a duplication of the exposure I get via SLF? If this is a good idea, would EG or ACGL be superior options?

Q: With the economy slowing and interest rate cuts on the horizon in the US and already occurring in Canada, should beneficiaries of the higher rates - insurance cos like TSU, FFH, and MFC be sold?

Q: With Buffet's recent disclosure of a large position in CHUBB and increasing natural disasters like forest fires in Canada etc would you reccomend having an allocation in the insurance sector? If so any names that standout?
Thanks, Lesley

Q: In your answer to Judith today, you identified four outstanding Canadian stocks that may develop, over time, to be as good as LMN. Could you identify 4-5 US stocks that have similar characteristics?

Q: How the above insurance companies rank in comparison to one another for total return?

Q: I am currently underweight Health and Financials in the U.S. Can you please provide your top 3-5 picks for each based on current valuations and considering a 5 year+ timeframe??

Q: Interest is peaked when you mentioned this company Arch Capital Group Ltd among CSU LMN TOI HEI TVK as potential long term compounders to Peter's recent question. I haven't heard of the company and the few questions on it here don't give much. I know they are in Insurance, Reinsurance and Mortgage and seems like they have made some decent acquisitions. Performance is inline with Fairfax the last 5 years.

But what reasons made you choose it with the other companies listed TOI, LMN HEI TVK?
Also what stands out vs others in Insurance companies such as Fairfax and Intact in Canada or Markel in USA? DO you prefer it or them or others for GROWTH?

PS did you get a question regarding Bird Construction Group I sent one in Monday, thanks!

Q: Are there a few Canadian and/or US companies that are “hiding in plain sight” that have the potential to be long term compounders similar to a CSU, MKL, ROP etc?

Q: Hi, Could you please provide your opinion on Progressive Corp. P&C Insurance sector seems to be doing well and stock is making new highs ( Noted that IFC is your favourite in Canada). How is the valuation compared to its competitors? Company released its premiums business for the month of January, yesterday, which sounded encouraging, sending stock to another high. Do you think that current level is good to start a position ? Thanks

Q: What is your opinion on Arch Capital and their future prospects. Thanks for you advice.