5 Best Insurance Stocks to Buy Now

Berkshire Hathaway offers life, accident, property and casualty risks insurance services through its insurance subsidiaries. The company penetrated the insurance industry though several key acquisitions. In 1996, Berkshire acquired Maryland-based GEICO, which is an auto insurance company. In 1998 Berkshire bought Connecticut-based Gen Re, which is a multinational insurance company offering services in property, casualty,  life and health. Berkshire also bought Dutch insurer NRG in 2007.

Berkshire tops the list of 10 best insurance stocks to buy now, as the stock was in the portfolios of 109 elite hedge funds tracked by Insider Monkey, as of the end of the third quarter. Nomadic Value Investment Partners think Berkshire is the best stock to buy in the market. Here is what they said:

“We added to Berkshire Hathaway. I won’t spend too much talking about this, but BRK is as attractively priced as it’s been in some time. The press’s and FinTwit’s fascination with “Warren’s lost it” is at a cyclical peak and is complete noise. However, the valid bear argument is that BRK is too big to compound at good rates going forward, and subsidiary company performance will be weak for the next couple of years with its high exposure to air traffic (Precision Cast Parts and previously held airline stocks) and holdings in “old economy” manufacturing and retail businesses. Also, short-term there’s an unknown consequence of insurance claim payouts and/or refunds13 . We wouldn’t completely disagree with these judgments, and the optics are certainly bad when BRK doesn’t buy back shares in a quarter with a substantial sell-down. However, with a long-term lens and given the management style of BRK (conservative talk and overperform), we will likely be quite satisfied in the future – whatever that looks like. Meanwhile, we’ve gotten into a range where 30%-50% of BRK is free. Are the actual growth prospects for Berkshire this dire? Berkshire is our largest position.”

Please also see 10 Best Value Stocks To Buy Now and Top 10 Dividend Stocks That Pay Monthly.

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Disclosure: No positions.