I spend a lot of time every week scanning and searching the market (using a wide range of tools) for stocks that are unreasonably underpriced.
One of those tools that I faithfully review is the Money Morning Stock VQScore™. Stocks with the highest VQScore have done very well historically, and their approach finds stocks positioned for liftoff soon. And that's just one of the tools I use every week.
This week, I ran across Tiptree Inc. (Nasdaq: TIPT) on the list of stocks with the highest VQScores. Tiptree fits most of my parameters as well so I spent a little time digging into the company further.
Tiptree is an exciting company that combines a specialty insurance operation with management's investing experience. And this stock has the prospects for extraordinary returns for patient, aggressive investors.
I have said many times that I love owning property and casualty insurance companies. It is profiting from pure math. I often compare it to owning a casino where you do not have to buy customers free drinks or have dancing girls parading around to keep them at the tables.
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Customers are betting something terrible will happen, and the insurance company is betting that nothing will happen. They use math to determine how likely the bad event is to occur and then charge accordingly. Property and casualty insurance has been a big part of several vast fortunes, and I love finding P&C companies priced at bargain levels that I can use to build my fortune.
Tiptree is priced right at current levels. Here's a closer look...
Why Tiptree Stock Is a "Pure Profit" Play for Investors
About the Author
Tim Melvin is an unlikely investment expert by any measure. Raised in the "projects" of Baltimore by a single mother, he never attended college and started out as a door-to-door vacuum salesman. But he knew the real money was in the stock market, so he set sights on investing - and by sheer force of determination, he eventually became a financial advisor to millionaires. Today, after 30 years of managing money for some of the wealthiest people in the world, he draws on his experience to help investors find "unreasonably good" bargain stocks, multiply profits, and build their nest eggs. Tim tirelessly works to find overlooked "hidden gems" in the stock market, drawing on the research of legendary investors like Benjamin Graham, Walter Schloss, and Marty Whitman. He has written and lectured extensively on the markets, with work appearing on Benzinga, Real Money, Daily Speculations, and more. He has published several books in the "Little Book of" Investment Series and a "Junior Chamber Course" geared towards young adults that teaches Graham's principles and techniques to a new generation of investors. Today, he serves as the Special Situations Strategist at Money Morning and the editor of Peak Yield Investor.