Why My System Loves This Insurance Powerhouse

Alpesh Patel|March 13, 2025

Warren Buffet has made billions investing in everything from Coca-Cola to Apple.

But his real wealth began and has remained in the insurance industry.

Most investors overlook this “boring” sector while chasing the next tech darling…

What they don’t realize is that certain insurance giants have been quietly outperforming the market for decades – with far less volatility.

And now… we can bring Buffett’s playbook to the 21st century…

By investing in insurance powerhouses with predictable cash flows and that have begun to leverage AI.

In today’s Dealmaker’s Diary, I’ll show you why one of the largest insurance companies in the world is backed by my proprietary GVI ratings and rock-solid metrics.

Click on the image below to see my full analysis.

Transcript

Hi, friends.

Dealmaker Diary here.

Let’s get to it and dive right into the deep end.

I’ve got Marsha McLennan (NYSE: MMC), a company I know quite well.

I actually was invited by their chief executive officer in the United Kingdom to give a speech on a market investment scenario.

And, it’s a phenomenal company.

It was at one time, and might still be, the world’s largest insurance company.

And it’s probably one of the world’s largest insurance companies you’ve never heard of with a massive market cap.

We are currently in a period of market turmoil. So it makes sense to think about risk management anyway.

Insurance companies during these periods, as Warren Buffett will tell you, can be rather good as solid, stable revenue providers.

That isn’t the only reason why I’ve selected it.

As you know, I don’t pick using narratives. I pick using data.

I’m going to go over some of that data.

Some of it you can see on screen here. You may have read some of it whilst I’ve been speaking.

There’s an extra narrative angle I want to put in here for you, which is AI.

Now, I’m not going to read through all of this. But these are all the ways in which it’s using AI.

The reason I’m showing you this is not because I’m using the AI narrative to pick the stock. Like I said, I’m data-driven.

But there are two reasons I want to show you this.

First of all, it’s nice to know when these companies are using AI. It means we have a solid data analysis coupled with a company that’s forward thinking.

But it’s also for an educational reason.

You know, for me, the stock market hasn’t just been about buying stocks and making money.

It has been about learning what is going on in the world and being connected to the world through my investments…

…being a participant and not just an observer.

And that’s why I want to educate you as well as inform, entertain, and hopefully be lucrative for you.

These are all the ways in which this company is using AI.

And that’s just amazing for me how quickly so many companies have moved into this space, not waiting to fall behind. Because with AI, it’s not just all about chip manufacturing.

I think there’s a lot that can be learned from that, and it’s reassuring.

When we look at the numbers – they’re great for me.

As you know, with my GVI ratings, I look at value, growth, and income. Said differently, revenue growth, earnings growth, and the valuation of a company.

My proprietary algorithm requires a minimum score of seven.

The forecasted P/E is 25x. You’re paying $4 for every future dollar of expected profits.

It’s a little bit pricey. But then, I think people are becoming more willing to pay more for safety, just like they are for gold at the moment.

It’s a flight to safety thing.

CROCI is 11.7x. That’s a good number. Cash return capital invested, that Goldman Sachs thing.

Companies in the top quartile of CROCI are doing really well. This hits that.

The Sortino Ratio is above one.

It’s very rare to get stocks with such a high reward to risk ratio, and volatility is next to nothing.

That’s extraordinary.

So, there are a lot of great things going for it.

And just look at that.

Steady, steady, steady.

Even in 2022, when markets were down, this stock went sideways, plodding along.

Can it pull back? Yeah.

I’m sure it can pull back to $211 or less. But this stock is in a solid state for me.

I’m very pleased with it.

I like it.

I hope you like it too.

Thank you very much.