Shares of Markel (NYSE:MKL) fell hard after announcing that it would be buying Alterra Capital (UNKNOWN:ALTE.DL2). 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"(NYSE:BRK-A) 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.

Fool contributor Matt Koppenheffer owns shares of Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway and Markel. Motley Fool newsletter services recommend Berkshire Hathaway and Markel. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.