The other day, I’m having a conversation with a group of savvy and active investors and the topic of “What are you buying now?” comes up. I mentioned I liked insurance companies. It was then brought up from our past conversations that I bought shares of a specific life insurance company less than a year ago that had appreciated over 30%. A few days later I got an email from one of the gentlemen that was in the aforementioned conversation. In that email he said, “Yeah, that thing might really begin to take off when they start buying back stock.”
Frankly, I think he was spot on and absolutely correct regarding this statement. However, I’d never considered that. I just thought the stock was really cheap when I began buying it. Nevertheless, right then and there it hits me like a brick…
REFLEXIVITY!!!!!!!!!!!!!
Read the full report: Reflexivity