Quote:
Originally Posted by Skip
If you think insurance companies gouge policy holders each year and keep raising rates, then you are on the wrong side of the deal.
One way to get your insurance premiums paid for you is to own part of the company.
If you bought just $6,000 worth of stock in Progressive Insurance (symbol: PGR) [Only sells vehicle insurance, the very profitable part of the business - Homeowners is covered by partners, not by Progressive] at $77/share a year ago (7/8/20) and sold it today at its $99/share price, you would have gained 28.5%, or $1,714, PLUS it paid $382 in dividends over the last 12 months. Over $2 grand increase. And the next results look even better since few people drove cars during the pandemic.
Or take Allstate Insurance (symbol: ALL). That $6,000 investment gained by 46.2% plus $174 in dividends. That's almost $3 grand increase.
That's enough to pay for your premiums and still have money left over for oil changes, car washes and a mini-vacation.
With a business like this, don't be the buyer, be the seller!
Skip
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Now you have hit the nail on the head, what’s the biggest farce of all, the stock market! Why are so many companies public now, what is the purpose? How many businesses actually need to raise capital which was the primary intent of going public.
So many of these insurance companies and other businesses don’t need the extra capital and their stock is way overvalued. They need to show profit for their stockholders so the customer is wrung out for every nickel and left holding policies with high deductible and poor coverages.
Anyone here remember mutual insurance companies? Owned by the insureds and serving the insured only and not some other false gods where money is siphoned off by ceos, huge advertising budgets and the “something-for-nothing” investors. People are sheep being sucked in by slick maneuvers that actually harm their way of life. How much premium do we pay for so many things that have no need to be a public company.