Two-part intrinsic value

Investments less debt, plus normalised earnings times a conservative multiple, per share.

• Valuation
• Capital allocation

1 idea that carry it

• TechniqueValuationLetter located

  Orange and Blue: a two-part intrinsic value that decides whether to buy back or issue

  Publish the method for intrinsic value, then let it decide: buy back below it, issue above it, and keep the multiple consistent so the method cannot flatter.

  Valuing a holding company or an insurer with an investment portfolio, and any discussion of how management should decide on buybacks.

  From Markel Group's 2023 letter to business partners · Thomas Gayner