Do yourself a favor and go to Google Finance and check out the long-term stock chart for RLI Corp. ($RLI). I’d embed the chart if I knew how.
Ever heard of RLI? Don’t worry, you’re not alone. It’s a property and casualty insurer based in Illinois. RLI has 670 employees. Now check out how often the stock is discussed at the Yahoo Finance message boards or at StockTwits. It might as well not exist.
RLI has been an outstanding stock for three decades yet it’s still nearly unknown. I may have to apologize to some readers when I say that insurance has been known to be one of the less-sexy businesses. Yet investors should know that the best insurance companies have often been some of the best investments. RLI is certainly in that category.
This is why I love the stock market. You can find overlooked gems that have richly rewarded investors and yet no one knows about them. So much of the financial media focuses on the superstar stocks like Google ($GOOG) and Apple ($AAPL). I almost feel guilty telling people that Google has performed about as well as the market over the last four years.
RLI has done so well recently that the company announced a special $5 per share dividend in addition to the regular 30-cent quarterly dividend. When they announced this, the stock was at $70 per share, so that was a nice gift for shareholders.
Posted by Eddy on December 21st, 2011 at 1:39 pm
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Tickers: RLI
Named by CNN/Money as the best buy-and-hold blogger, Eddy Elfenbein is the editor of Crossing Wall Street. His free Buy List has beaten the S&P 500 for the last four years in a row. (more)
This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities.Disclaimer | © Copyright 2011 Crossing Wall Street.
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