Warren Buffett's holding company, Berkshire Hathaway , took a few new positions in the 2022 first quarter, including insurance company Markel (NYSE: MKL) . That's an interesting partnership since Markel is often referred to as a "baby Berkshire," meaning it's reminiscent of Berkshire Hathaway itself. But it should evoke more interest than just being a Buffett pick since it's beating the market so far in 2022. In fact, it's actually up 12% in 2022, while the S&P 500 is down 16%. So should you be like Buffett and invest in Markel?
Markel has been around for a long time, since its humble beginnings as an alternative insurer in 1930. That has remained its core business, and it offers "unique coverages" as well as reinsurance. These are riskier insurance types, but also more profitable. Some of the coverages include specialty property, horse and farm, and events and weddings. If you find these through your standard insurance company, it's very possible that your policy is underwritten by Markel. And since Markel has been doing it for nearly 100 years, it has the expertise to price appropriately and post high profits.
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This Stock Is Beating the Market in 2022, and It's Still a Buy