September 14, 2012
Motley Fool analyst Anand real-money portfolio, and believes that the public spotlight (and scrutiny) post-government bailout will actually help them as an insurance company. Here's what Anand likes most about AIG:
is buying AIG in his
- The underlying business: As opposed to big Wall Street banks, AIG can stick to the insurance business, taking in premiums, paying out benefits, and investing conservatively to make money on their float.
- Their valuation: AIG is at such a low price-to-book ratio if it can stick to its knitting and avoid Wall Street shenanigans.
- Government catalyst: As the government reduces its stake, down now to below 20% from 80%, less and less selling pressure is put on the stock.
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