I’ve already said a bit about Porto Seguro but it was not an analysis.
The company does not need presentations. The new IR website is awesome.
Sometimes when I think about how the insurance industry has a great future in Brazil and a lot to grow still, I remember Warren Buffet and Berkshire Hathaway who got rich thanks to insurance.
Nothing better and clearer than that. My position is medium, the desire to take a big shot with a super contribution is very great, I’m trying to control myself not to do this, but I do not know … hehe just when the guy opens the Home Broker is that makes you want to think.
The indicators for the last years are as follows:
From here you can see how strong the growth of EPS.
Another thing I noticed is the relative yield growth you receive over the years.
You see, if you look at a given yield at that time of 4%, it’s a yield on the CURRENT price of the stock.
Example, the action is costing R$ 100.00, paying 5 reais of dividends per year. 5% Yield, okay. But imagine that you have been buying this stock for 10 years and your average price is already $ 50 and you get the same 5 reais a year, your yield is 10%. No matter the price of the paper price, but yours.
So I have this very clear. And this is what tends to happen, good companies, their average price tends to ZERO in the long run and their yield will always increase, this is inexorable, as long as the company stays good. And I have this impression of Porto Seguro. I only had it 3 years ago and I can not see that effect yet, but it will certainly happen.
In Porto, in 20015, profits continue to increase, ROE of 15% for 3 years, the margin of 6%. Operating profit fell a bit but the financial one held. So the result was good because of the financial. For me it does not matter, the insurance company is also financial and in this crisis, we are what really matters is the profit. Let’s see if the economy recovers a little in 2016 if the operating improves. The other markers are on the charts.