Brown & Brown, Inc. (NYSE:BRO)

Used to trade at p/b of 5. Current p/b is 2.5. That's half off! Insurance agencies are low risk, high profit machines. Licensing and customer/agent relationships both create sustainable moats. Very diversified across the nation.

Added 8/12/10

great company in a great industry, low reinvestment needs, superior decentralized mgmt. It is moderately cyclical but has low debt load and will likely take advantage of the soft market by acquiring more local insurance agencies and continuing to build their large network.

This account tracks the performance of the investment firm Ruane, Cunniff, and Goldfarb - the investment manager of Sequoia Fund.

Brown & Brown is a well-managed company that has weather the soft market better than most. Assuming we're on the tail end of the soft market, I see Brown & Brown gaining organic pricing power in the next year. That said, Brown & Brown has historically grown by acquisition anyway, and smaller agencies and brokerages that are taking a serious hit from soft prices should make for accretive acquisition opportunities in the near term.

low p/e, near 52 week low

oversold

technical looks good

According to Morgan House" this is something Mr. Buffett would consider, and I can live with that. I can see where the demand/need for insurance isn't going down anytime soon, and in fact, I'm betting it will increase.

Perfect time to buy this stock.

good earning history, way oversold, good management

Buying low, and I like the fact that insiders are buying.

Solid

First of all I did not pic this,Tyroy did.He makes a good point.He says this company is a sure winner,because if you invest with them and loose,no problem,you just slip and break your neck on the way out the door.I don't even know what he's talking most of the time,but I can tell you that in 3 years he has picked 4 counting this one,and the other 3 blowed the roof off the market,so we'll see,and that's the only reason I let him put it in my list.

Company will see increased favor in market this summer.
Is a broker and not insurence company so they make money on sales of policies and are not affected by claims.

Price & RSI

Look for this stock to rebound this month.
Hold Period - One Month.

Great insurance play with solid fwd growth prospects. A pick from a value mgr of $125m that I respect. Agree with his thoughts but would comment this is not a great buy here. More like a reasonable buy and I would put more into it around mid $20s if it happen to get caught in some downdraft to that area.