Recent News
The debate continues on the merger of XM (XMSR ) and Sirius (SIRI ) Satellite Radio as the case again comes before the Senate Committee on Commerce for round four since its original proposition in February. Opponents argue that the merger will create a monopoly, leaving a sole provider for satellite service to consumers. This, they argue, will lead to increased prices and decreased content. Advocates argue that the merger is necessary in order to compete against other technologies, including terrestrial radio, MP3 players, CD/DVD etc. The inference is that the battle between the two small companies for the limited audience is splitting the market and preventing its advance against the other technologies.
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Neubert's Trades Buying an Insurer: I'm Afraid Of Global Warming, Chubb Isn't
| Buying an Insurer: I'm Afraid Of Global Warming, Chubb Isn't |
| Written by David Neubert | |||
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I had to add to my Chubb (CB) position. This property and casualty company is so cheap at a p/e of 8. They've had this low p/e for years as the stock has climbed. People are worried that global warming and terrorism mean that there is another unexpected disaster out there that will hurt insurance companies.
While global warming is bad for me, you, the planet, the oceans, all the species that will go extinct and ski resorts; global warming will not hurt the insurance industry. The industry is pricing global warming into its policy prices and actuarial models. The market is wrong to think that global warming will hurt insurers. Another plus in Chubb's favor is their ongoing share buyback. They realize the stock is cheap and are rewarding those shareholders who hang on. Disclosures and Confessions: I own CB. I have owned CB for over 2 years. I insure my NY condo with Chubb. Their insurance is expensive but I hear the have a reputation for being very quick to pay when the time comes. I have never made a claim against my Chubb insurance policy. I also own Berkshire Hathaway (BRK/A) for many of the same reasons mentioned above. Disclaimer: Nothing in this blog is meant to be specific financial advice or a recommendation to buy or sell. I do not give investment advice. Do your own research. Do not rely on anything in this weblog to make investment decisions. I do not log all my trades here, I only describe or mention those that I think might be interesting. Consult an investment professional familiar with your specific financial situation before buying or selling any security.
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