Shares of Markel (MKL 1.10%) fell hard after announcing that it would be buying Alterra Capital (NASDAQ: ALTE). Why did the market take this acquisition so badly? In this video, Motley Fool analyst Matt Koppenheffer discusses how this deal is going to cause share dilution for shareholders, and why the market may feel that this "Baby Berkshire" may not have the best track record of growing through acquisitions. He also gives his final thumbs-up or thumbs-down on the deal and tells us why.
A Brutal Beating for Baby Berkshire
By Matt Koppenheffer – Dec 19, 2012 at 6:45PM
NYSE: BRK.A
Berkshire Hathaway
Market Cap
$1.1T
Today's Change
(-0.14%) $1040.01
Current Price
$735560.00
Price as of October 22, 2025 at 3:07 PM ET
Markel got punished for closing this deal.
About the Author
Matt is the head of the Coverage Team for The Motely Fool's premium products. Previously, he's been . Matt is a heavy user of AI tools and is working on harnessing them to help Fool members. Previously, Matt was GM of Motley Fool Ascent, led The Motley Fool Deutschland, has been an investor on various Fool services, and co-hosted the podcast "Where the Money Is". He also co-authored the book The Astonishing Collapse of MF Global. Matt started his career in San Francisco as a technology-focused investment banker and also worked at a $15 billion private equity company. When he's thinking about how to make Fools smarter, happier, and richer, you can usually find Matt running trails or making a mess in the kitchen. He's a graduate of the University of Pennsylvania, but is a lifelong fan of Penn State football.