Insurance companies with massive float: paid to hold money, compound via investing
Insurance Float Compounders
| Symbol | Action | Vol | Stop Loss | Take Profit | Size | Links |
|---|---|---|---|---|---|---|
| CINF | BUY | 23% | 19.4% below entry | 9.7% above entry | 9.2% | TVYH |
| MKL | BUY | 21% | 17.8% below entry | 8.9% above entry | 10.0% | TVYH |
| BRK-B | BUY | 18% | 14.8% below entry | 7.4% above entry | 12.1% | TVYH |
| ALL | BUY | 25% | 20.9% below entry | 10.5% above entry | 8.6% | TVYH |
| CB | BUY | 19% | 16.0% below entry | 8.1% above entry | 11.1% | TVYH |
| AFL | BUY | 20% | 16.9% below entry | 8.5% above entry | 10.6% | TVYH |
| WRB | BUY | 23% | 19.0% below entry | 9.6% above entry | 9.4% | TVYH |
This strategy has moderate long-term potential but requires monitoring. - Take profit: Rebalance when any position exceeds 2x its target weight. Trim back to target, redeploy to underweight positions. - Stop loss: NO price-based stop loss. This strategy recovered from -16% drawdown to return 110% long-term. - Exit rule: Exit if combined ratio exceeds 105% for 2 quarters.