CBL Insurance IPO

[Snow Leopard]

I am a bit surprised PT...

I am constantly surprised by the price that some people pay for shares and the amount of research they have not done on them.

...this one has fat tails...

So do Snow Leopards:

...and thats exactly what the independent actuaries were reminding them about...

and they are provisioning for, apparently taking it in one hit!

...and a lil ol kiwi company competing against European insurance giants?? What is their competitive advantage?

You do your research and you attempt to define the risks and the rewards and then you put a price on what you believe represents good value.

You accept that depending upon the scenario that plays out you may loose or make varying amounts of money and you hope that as the circumstances develop you reassess those risks and whether to buy, hold or sell.
You do not put too much of your total portfolio in any one sector or company.

I am content to be in at the moment, I believe that they can grow their profits over the next few years sufficiently to justify that but I have suggested on this thread that some people need to be cautious of the publicly available future estimates for CBL.


Best Wishes
Paper Tiger