I do not doubt that Berkshire Hathaway (NYSE:BRK.A) investors will take issue with me, but I think Arch Capital (Nasdaq:ACGL) might just be the best reinsurance company in the business. Unfortunately, even the best player in an industry only has so much room to maneuver if industry conditions stay bad enough for long enough.
All that being said, this is clearly a case of "be careful what you wish for" - Arch Capital could certainly use a harder market (that is, a market where rates are climbing), but those come at a cost. Harder markets usually come around because of large accident payouts, and there is always the risk that your company is one of those caught making the payments.
For the full piece, please go to:
http://stocks.investopedia.com/stock-analysis/2010/Arch-Capital---A-Weak-Market-Will-Take-Its-Toll-Eventually-ACGL-BRK.A-AXS-ACE0728.aspx
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