RE: No Growth Strategy?........ Joefongo
I would make the point that in 2001 we did see a P/E of 17 on KFS.
I do not expect to see a multiple of 15 in the near term. I do say that if it becomes obvious that investment returns will increase and combined ratios will decrease, THEN the market will get excited about this stock. History has shown when the market embraces a stock it will be only too glad to grant it a higher multiple.
I mentioned that KFS had a P/E of 17 in 2001. Fairfax Financial had a P/E of 25 in 1998. Don't underestimate how far the market will take a stock once it is both confident and excited. The highest multiples often happen when earnings are at unsustainably high levels!
In any event a 25% annual return for several years seems like a minimum objective from here.