Hi Mayo,I think what your co-respondent was trying to share with...

Hi Mayo,

I think what your co-respondent was trying to share with you is that there are other investments that are proven to be structurally better over time.

If you take QBE over the last 10 years the stock has increased by a total of 10%. So 1% per year on average. Not keeping up with inflation and that does not even count friction costs and tax. The business is consistently a poor performer over time. The most likely outcome for an investment at any period is to lose money in real terms. (The prior 10 years was even worse...)

If you are determined to stay in the insurance industry there is another business that is an insurance broker. So they maintain relationships with customers and collect proceeds. As they have ramped their business in Australia they have a clear line of sight to their costs, revenues and profits. This company has gained 406% over the last 10 years. So an average of more than 40% per year. And you can just keep holding, no friction, taxes delayed, dividends accumulating. Maybe you can work out which one it is and if it (or something of quality and underpriced) might possibly deliver better results for you?

All the best.

Cuppa