Insurance is a durable business. No professional enterprise can do without it, in good times and bad. Insurance is also a vital form of security for stock investors. There are abundant and compelling reasons to favor stocks in the insurance business when markets are depressed, under cost pressures, or with uncertain demand trends.

Insurance spawns other enterprises, just like most industries. The entities from which retail customers buy insurance are reluctant to take full risks on their own shoulders. There are other financial benefits in reinsurance as well. However, the reinsurance industry is subject to the kinds of derivative risks from which the stock exchange world has suffered since September 2007.

The insurance business also requires the management of claims. This service, unlike reinsurance, costs little to run, is isolated from risk, and adds significant values. The business model of this small capital member of the Insurance (Miscellaneous) Industry from Atlanta, GA,

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A reader left a lengthy comment about Modern Portfolio Theory that you can read here. Where better to go to discuss theory than the Delta Tau Chi house at Faber College? Fortunately this post will be short as I am no MPT scholar. First here is the Investopedia quick and dirty on MPT. Basically the reader aspires to be a money manager, spent some time working for someone very big in the industry who succeeded by not using MPT and so the reader seems conflicted by this. Really, I don't think the reader is conflicted, he doesn't believe in it, maybe that will be temporary or maybe not. MPT is a very important building block for professional management of a portfolio. The principles behind it are important and despite the reader's experience and what is contained in this link left by the ...