- A good inflation hedge has offense and defense: pricing power, low vulnerability to higher labor and material costs, high ROIC, modest debt, and a reasonable price.
- Markel, a three generation family company which emphasizes integrity and successfully transitioned to non-family leadership checks these boxes.
- Markel's insurance business has pricing power and will turn over its bond portfolio at higher rates; CEO Tom Gayner is a legendary investor and Markel Ventures's growth helps outrun inflation.
- Markel's revenues have quadrupled in 10 years with a CAGR around 15% and Net Income has grown at a rate over 20%.
- Markel has lumpy earnings but has shareholders who accept a long term perspective; it's an all-weather growth stock which will shine in high inflation.
For further details see:
Markel: My Top Stock For A High-Inflation Environment