Tom Gayner’s 2023 Letter to Shareholders: We have a formula for when to issue or repurchase shares.

Edited by Li Jian In his latest 2023 Annual Letter to Shareholders, Thomas S. Gayner, CEO of Markel Group, explained how he calculates the intrinsic value of the company’s stock. Using Markel Group—under Gayner’s leadership—as an example, the company’s value consists primarily of two components: Orange: Represents the investment portfolio, calculated as total investments plus cash minus debt, divided by the number of outstanding shares. They consider this meaningful because their insurance business has consistently generated sufficient profit to cover expenses and sustain investment returns. Blue: Represents operating earnings from the insurance business and Markel Ventures—excluding investment income—and adjusted for consistency, then divided by the number of outstanding shares to derive the per-share “blue” value. Total Value: The sum of the “orange” and “blue” values yields the estimated per-share intrinsic value. This framework guides Markel’s share repurchase and issuance decisions: When management believes the market price is significantly below their estimated intrinsic value, they repurchase shares. When the company requires capital—for growth, acquisitions, or financing—and the market price exceeds their estimated intrinsic value, it issues new shares. Gayner emphasizes that this practice is not intended to manipulate stock prices but rather to enhance transparency in Markel Group’s capital allocation decisions. Additionally, in the shareholder letter, Gayner provided statistical analysis on how long-term holdings have reduced deferred tax liabilities—yielding a substantial amount of zero-cost capital for the company. Moreover, long-term holding has brought numerous beneficial effects to the company’s decision-making processes and corporate culture. Excerpt from the shareholder letter: Orange and Blue Over the past several years, we have discussed “orange and blue capital” and “orange and blue income” to convey Markel Group’s development. This year, we again reference “orange and blue” to help you understand how we think about capital allocation—and how we make share repurchase decisions. There are many ways to evaluate a company; our method is neither perfect nor unique. Yet we believe that adhering consistently to this principle year after year provides us with the right direction. First, we believe there is an “orange” component to the company’s value. To calculate the “orange” value, we add up all investments and cash on the balance sheet and subtract our debt. Then we divide the resulting total by the number of outstanding shares to compute per-share net investment. We consider this a meaningful figure, based on several important assumptions: If our insurance business maintains a combined ratio below 100% without shrinking in scale, then all returns from the total investment portfolio accrue to shareholders. Reviewing 2023, the past five years, the past fifteen years, the past twenty-one years—and indeed the entire period since our initial public offering—our historical track record supports the reasonableness of this assumption.

Which stocks are considered electronic specialty gas概念股 (concept stocks)?

Nippon Sanso Holdings | Air Products | Air Liquide | Linde As core materials for semiconductor etching, deposition, cleaning, and ion implantation, the high-end electronic specialty gas market is dominated globally by these four major overseas companies. Domestically, Chinese firms have achieved leading global production capacity in certain major product categories, and certification for advanced process nodes continues to progress.

Markel Group Inc. Acquires 220,600 Shares of Linde PLC

1 day ago

Markel Group Inc. acquired a new stake of 220,600 shares in industrial gas producer Linde PLC during Q3, valued at approximately $104.7 million. Analysts maintain a positive outlook with an average price target of $553.05.

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