@Portfolio For a financial illiterate you make a good deal of...

@Portfolio

For a financial illiterate you make a good deal of sense (ha ha). I fully accept that as a holder of the business, who bought in at under NTA value, your perspective and rational course of action will be different from mine. I too accept that ROE's north of 20% could possibly persist for a while. That said, I also suspect that ROE's of 7% could also occur, for a while, at some point in the future. In fact, if history is a guide, I see no compelling reason why ROE's of zero, or worse, may not prevail, for a period, at some point.

I sense that FRM management have the same opinion. That is why I sense they will continue to make hay while the sun shines and continue to build up their war chest, so that when the tide turns, they will have the ammo to outlive and perhaps kill the opposition. That's why I wouldn't be expecting a dividend any time soon.