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Markel Group (NYSE:MKL) announced it will conduct a review of its business.

The board will lead the review, helped by external consultants and advisors, the company said in a statement on Wednesday. The insurer will also review its structure, capital allocation and enhance its disclosures.

The review comes after activist investor Jana Partners in December said Markel (NYSE:MKL) should explore a separation or sale of its private investments business. Jana also said it believes the entire company could be a good takeover target for larger insurers.

https://seekingalpha.com/news/4404011-insurer-mark...

Markel is often touted as a mini Berkshire. But Buffett would never hire external consultants to do a business review at the behest of an activist investor.

Reviewing its structure & capital allocation should be the core competency of management. I am surprised and disappointed by this decision by Markel management.

At least initially, the market doesn't seem to mind the idea. Up 7% ait

The algos sure ran with that press release didn't they?

As for the business review idea, sure...a long look in the mirror is always reasonable.

Hiring advisers and consultants to help lead the effort?! That's the kind of thing that would make Charlie Munger turn over in his grave. **** no!!

m

I’ve taken some time to think about the recent MKL news. Well, the 10% spike in MKL price ($2063) after earnings has all but disappeared with 8 straight days of losses. As a decade long owner, imo MKL wants to be a BRK, but continues to fall short in judgement, decision making, execution, results and market reaction.

I like Tom G. and some mgt people I have met, but I do have less faith in Tom and senior mgt if Jana is stepping in and throwing it’s weight around and expensive outside consultants and experts need to come in to help them find more efficiency, optimize allocation and structure & help them look more closely in the mirror.

Warren & Charlie would not need to nor ever go down this need for consultants road, and it adds doubt in the faith of mgt who I’ve visited with a few times in Omaha. BRK has returned ~200% vs. MKL ~100% since ownership a decade ago.

I tried to sell a bit of my MKL but missed my limit order after the spike & reading their recent note. It’s fallen each day since. The plan now is to do even more homework, attend the MKL events in Omaha and chat with a few folks in the know and then just noodle on things. To be honest, my trust and faith are a bit weakened in MKL…and strengthened in BRK. It’s not easy executing the Berkshire formula.

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