MURGF - Munich Re: My Reinvestments Are Better And The Company Remains Expensive

2024-02-15 07:30:01 ET

Summary

• Munich RE is the largest reinsurance company on the planet and has a very solid upside at the right valuation.
• However, the company is now far too expensive to be considered interesting as a low-valuation investment with a 15% annualized upside.
• Because of that, and for the 2024E period, I consider Munich RE to be a "HOLD" at best, with only the merest of potential upsides.

Dear readers/followers,

As I made abundantly clear in my last article on Munich RE (MURGY) I've made a very hefty profit with my investment in Munich RE that I have covered over the course of over a year now. Some readers have commented, or also sent private messages, that I might have sold my stake too early given the return that we've been seeing and the trajectory that Munich RE seems to have been able to do.

This is certainly an opinion - and one with a bit of merit, depending on your target RoR. The thing with my own rotation though is that invested my Munich RE stake in a mix of 5 undervalued businesses, 4 of which have significantly outperformed in their own right. This means that my end capital and dividends from this new investment are actually substantially better than what can be, or could be garnered from Munich RE....

For further details see: