WTM

White Mountains is a diversified insurance and financial-services holding company run as a long-term, book-value-per-share compounder in the Berkshire mold — acquiring, building and opportunistically monetizing insurance and specialty-finance businesses, alongside investment stakes such as MediaAlpha. FY2025 was an exceptional year: revenue rose 66.8% to $3.73B and net income surged 380% to $1.11B ($430.14 diluted EPS), producing a strong 20.4% return on equity and lifting stockholders' equity 21.0% to $5.43B. The balance sheet is conservative (liabilities/equity just 1.12x), and management bought back $203M of stock (shares down 3.7%) — a meaningful return for a company that prioritizes per-share value.

The headline 4.7x P/E is misleading and should not be read as deep value: White Mountains's earnings are inherently lumpy and heavily influenced by investment and mark-to-market gains, as the swing from a $275M loss in FY2021 to $793M, then $230M, then $1.11B in FY2025 makes clear. The right lens is book value per share. With equity of $5.43B over ~2.47M shares, book value is roughly $2,200 per share, so at $2,013 the stock trades at a modest discount to book — historically a reasonable-to-attractive entry point for this disciplined capital allocator, especially given the 20% ROE.