Letter

Markel Group's 2023 letter to business partners

Thomas Gayner · 2024

It explains, in a chief executive's own words, a simple two-part method for estimating intrinsic value per share and how that estimate guides decisions to repurchase or issue shares.

• Valuation
• Capital allocation

1 idea from this letter

• TechniqueValuation 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.