Markel has delivered underwhelming underwriting results lately.
Its large stock portfolio makes it vulnerable to stock market swings.
Shares of Markel (NYSE: MKL) were down 13% year-to-date as of Oct. 23. That could make an investor wonder: Is this a good time to buy into Markel? Here's my take. For starters, know that Markel has long been referred to as a "mini-Berkshire" because of similarities to Warren Buffett's Berkshire Hathaway. But there are differences, too.
Like Berkshire, Markel is mainly an insurance operation, using capital from that business to invest in or buy other companies. Thus, it owns much or all of various companies in businesses ranging from industrial bakery equipment to ornamental plants to precast concrete.
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If you'd plunked $10,000 into Markel 30 years ago, your stake would be worth about $220,000 today, reflecting an average annual gain of 10.9%. That's quite good, when you consider that the S&P 500 averaged 8.7% in the same period, growing $10,000 to nearly $124,000.
The company has struggled in recent years, though, with average annual gains mostly well below those of Berkshire Hathaway. (And, interestingly, Berkshire is its largest stock investment.)
| Time Period |
Average Annual Gain |
|---|---|
|
3 years |
9.21% |
|
5 years |
7.20% |
|
10 years |
7.54% |
|
15 years |
11.10% |
Source: Morningstar.com, as of Oct. 23, 2026.
Markel's shares seem relatively fairly valued at recent levels, but I am not jumping in. Why? Well, the company is not firing on all cylinders, with poor underwriting results in recent years. And much of its value is tied to its stock holdings, which are vulnerable to stock market swings. (Plenty of people are worrying about a stock market crash this year or soon.)
Markel doesn't pay a dividend, either, which might not matter to you -- but I'm gravitating more and more to dividend payers, as I try to build a meaningful income stream from dividends.
Markel may be a terrific performer from here on out, but I can see more attractive investments these days. Still, if you're intrigued, give it a closer look.
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Selena Maranjian has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway and Markel Group. The Motley Fool has a disclosure policy.