What I like about the setup of Markel Group as a well diversified holding company is the flexibility this structure with three separate engines gives management in terms of capital allocation. They can invest in fully owned businesses if growth opportunities arise or make new acquisitions. They can put money into fixed income instruments or invest in the public markets and still be very liquid. Or optionally, if the Markel Group stock price is below intrinsic value, management can buy back stock at favorable prices and increase shareholder value that way. Ultimately, paying out a dividend is also an option even though I would be surprised given all the other options available.
I particularly like the long-term time horizon in everything they do and how they analyse the company. Financial performance is split into 5-year buckets for management compensation but also to show owners the long-term trajectory of the company. Zooming out like this gives us a more realistic overview about how Markel Group is performing. And as we know, in the short term the stock market is a voting machine and only in the long term it becomes a weighing machine.
Markel Group’s goal:
„Build one of the world’s great companies. One person and one interaction at a time.“