1 Stock That Stunned the Street in 2012

Make sure you start 2013 with a bang and get the inside scoop on what Motley Fool superinvestor David Gardner will be buying this year. He's crushed the market in his Stock Advisor and Rule Breakers portfolios for years, and now you can take a personal tour of his flagship stock-picking service, Supernova. Just click here now for instant access.

Brendan Byrnes: All right. Let's move over to financials, your expertise, Matt. What do you think surprised you, good or bad, in 2012?

Matt Koppenheffer: Actually, to continue on that "left for dead" theme, AIG. Talk about poster child for the financial crisis. This is a company that nobody thought was going to really come back. It got that massive government bailout. I think there were a lot of people that thought it would continue to stumble along.

Then if you just look at the last week, the things that AIG has done -- they sold 80% of their aircraft leasing business, which frees up their balance sheet to a really large extent, and the Treasury announced that they sold their remaining stake in AIG, so AIG is no longer a ward of the state at this point, and that's just the last week.

If you look at the collective strides that AIG has taken since the financial crisis, this is a whole new company. Looking forward, it has the opportunity to show if its core businesses -- the life insurance and the property and casualty insurance that it has -- are still really solid insurers, which we could argue that they were before the financial crisis.

Then combine that with the fact that it's trading at a ridiculously cheap valuation multiple -- this is a company that's surprised me. I didn't think I'd ever like it. I didn't think I could ever like AIG again, and now I'm thinking that I might have to pull the trigger on it.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2180367, ~/Articles/ArticleHandler.aspx, 10/2/2014 6:52:32 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement