Progressive's Consistent Performance and Valuation Concerns (PGR)

27 days ago

Toby

"I think 10 to 15% returns uh over the next five years and on but at the lower end of that I'm thinking it's probably a slight but consistent market beater. I think uh valuation I went with a seven. It may seem a little low. You know the valuation's okay here in terms of safety, but it's not great. They've earned that premium valuation though, right? This is a company that you might say I wish it were lower priced, but there's a reason I think that the market puts it where it does. But they do have a potential for a short-term hit if there's a major disaster."

Toby outlines a view on Progressive, highlighting an expected return of 10-15% over the next five years and positioning the stock as a slight but consistent market beater despite its premium valuation. He acknowledges that while the valuation isn't ideal, Progressive's strong fundamentals and safety record support its long-term performance, though there is a risk of short-term volatility due to potential catastrophic events.

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