Together, Do Markel Corporation (MKL) and Alterra Look Cheap?

Of course, Markel is still much more of a pure insurer than Berkshire Hathaway, whose five largest non-insurance businesses boasted aggregate earnings of $10.1 billion last year. In addition, Berkshire continues to spend billions every year on smaller bolt-on acquisitions, which are melded into its existing operating units.

Still, though total sales from Markel’s own group of non-insurance businesses clocked in at just $489.4 million in 2012, that did represent a 67% increase over the prior year as Markel continued to pursue its own group of comparatively tiny acquisitions.

Foolish takeaway

But, really, Markel’s small size — even after merging with Alterra — remains one of its greatest assets. This becomes especially apparent when we remember Buffett hasn’t been shy about calling out Berkshire’s enormousness as one of the primary reasons he won’t be able to duplicate his incredible past rates of return.

Long story short, at only 1.16 times book value, Markel currently looks like a fantastic bargain, and I believe that patient shareholders who buy now stand to be rewarded handsomely over the long run.

The article Together, Do Markel and Alterra Look Cheap? originally appeared on Fool.com and is written by Steve Symington.

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

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