By and large, I'm a big advocate of the KISS rule in investing (Keep It
Simple, Stupid). More often than not, if an investment idea takes a lot
of explanation, it's not worth the trouble. While Tower Group (TWGP)
was once a relatively straightforward P&C insurance play, the
company's proposed merger with Canopius makes this a much more
complicated investment idea. While the reasons for the merger are sound
and the potential value here is high, investors need to weigh that
carefully against the risks and increasing complexity of the company.
Please continue here:
Confusing Tower Group Offers Potential Value And Near-Certain Risk
No comments:
Post a Comment