Markel Corporation (MKL): Two Reasons Warren Buffett Shouldn’t Buy

In addition, given Markel’s comparatively minuscule market capitalization of just $4.9 billion, Buffett may not want to reduce his options by spending a third of his available cash on a single company. After all, given Berkshire’s market cap of more than $240 billion, it’s going to take an elephant to move that earnings needle — and Markel admittedly looks more a wildebeest than anything else.

Sit back, relax, and stay awhile
For the two reasons above, Markel Corporation (NYSE:MKL) investors can rest easy knowing their favorite stock probably isn’t going anywhere for the time being. In the end, with literally hundreds of options on his table, it’s anyone’s best guess which company Buffett might buy next.

If one thing’s for sure, though, it’s that Buffett will bag another elephant as soon as he can.

The article 2 Reasons Buffett Should NOT Buy Markel originally appeared on Fool.com.

Fool contributor Steve Symington owns shares of Markel. The Motley Fool recommends Berkshire Hathaway and Markel. The Motley Fool owns shares of Berkshire Hathaway and Markel.

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