MTG Click here to go to the original topic          Value Investing Forum Forum Index -> Value Stock Picks dahhuilaudavid Fri Feb 17, 2006 1:15 pm     MTG  Dear Blast_investor, What do you think of MTG? http://dahhuilaudavid.blogspot.com/2006/02/mgic-investment-corporation-mtg-feb-10.html Thank you, Dah Hui Lau (David) http://dahhuilaudavid.blogspot.com blast_investor Sat Feb 18, 2006 1:17 am       Hi David: I would be cautious on this stock MTG, not my type. The default risk on MTG is pretty significant. When a Economy gets worse, the home buyers go into default, the first group of companies get hit is MTG like mortgage insurers. Banks are actually safer because they are shielded at least for first 20% of risk from MTG type insurance. Insurance companies usually have their own reserve to account for risks. But many times, insurance companies just under-estimate the risk for various reasons. This is chronicle problems. Warren Buffett loves insurance business. I am not expert in assessing the insurance business risk, namely the default risk on MTG business. I usually shy away from insurance companies, not my circle of competence.          Value Investing Forum Forum Index -> Value Stock Picks Page 1 of 1 Search Engine Indexer BlastInvest @2005 p h p B B © 2001, 2002 p h p B B Group