A value investor usually requires a substantial price discount at the company’s intrinsic value. But the latter exceeds the mere accounting value of its tangible assets.
Are we at the dawn of a cyclical change?
If neither the structure of life insurers’ assets changes, nor the level of long-term interest rates, the attractiveness of life insurance for savers may rapidly diminish.
Taking human judgement out of equity portfolios can help investors stay ahead of market reversals.