Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, diversified holdings company PICO Holdings (NASDAQ:PICO) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at PICO's business and see what CAPS investors are saying about the stock right now.

PICO facts

Headquarters (Founded)

La Jolla, Calif. (1981)

Market Cap

$709.3 million


Multi-sector holdings

Trailing-12-Month Revenue

($8.24 million)


CEO John Hart (since 1996)
CFO Maxim Webb (since 2001)

Business Segments

Water resource and storage, real estate, runoff insurance, corporate

Compound Annual Tangible Book Value Growth (Over Past 5 Years)



$160.6 million / $38.7 million

Other Highly Rated Holding Companies

Berkshire Hathaway (NYSE:BRK-A) (NYSE:BRK-B)
Leucadia (NYSE:LUK)

CAPS Members Bullish on PICO Also Bullish on

Johnson & Johnson (NYSE:JNJ)

CAPS Members Bearish on PICO Also Bearish on

Bank of America (NYSE:BAC)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 306 members who have rated PICO believe the stock will outperform the S&P 500 going forward. These bulls include elrap and WhiskeyGirl.

Just last month, elrap tapped the stock as a cheap way to quench your thirst: 

water is underrated. water shares are undervalued. It's only a matter of time before water is properly valued.

In an earlier pitch, WhiskeyGirl expands on PICO as a perfect pick for liquid portfolios:

Water. In [Nevada] and [Arizona], where its most prized. Additionally they've been trying to make inroads into [California]. I also appreciate the security and diversification that their insurance businesses bring to the stock.

The focus on increasing book value per share appeals to me and is backed up by their linking of it to exec compensation. I've read some of the other Fools and the articles drawing a comparison to early Buffett style management. Sometimes, its nice to hope that maybe, just maybe, that comparison will win out over the long term.

What do you think about PICO, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Berkshire Hathaway and Leucadia are Motley Fool Stock Advisor picks. Berkshire is also a choice of Inside Value, and the Fool owns shares of it. Johnson & Johnson is a selection of Income Investor. The Fool's disclosure policy always gets a perfect score.