Super Idea. Maybe?!?

[Korzhik]

so today i saw a presentation by the chairman of national interstate. its an insurance company and he said an amazingly great thing.... insurance businesses are making so much more money with the gas prices going up because cars are staying inside..out of all the trouble and risk! so that got me thinking is it time to make my first stock risk and invest some dough into insurance companies right now??? also one of the favorite things he said was that "insurance companies are not recession proof, but they are sort of recession resistant." so tell me what you guys think...

Thanks
Korzhik

[jtirado]

hell no.......

[Gaulkin]

Yeah, i wouldn't advise investing in it either. I would however recommend Mosaic which is a fertilizer company, Hess the gas station, and Deere which makes far equipment.

[Korzhik]

thanks guys, you have told me no, but without an explanation. could you be more specific?

[Korzhik]

please explain why not...

[Upperz]

I read an article that most people (at least in The Netherlands), are over-and double insured.
Has to do with people getting worried about their future, and choose rather to be over then under insured.
It would be logical that the insurance companies will make more profit because of this.
Also cars are getting more expensive every year, and so are insurances. While people are becoming more carefull with their stuff like cars.

In short, I would say, it will be a good investment, unless you invest in insurancecompanies who deal a lot with natural disasters.

[Korzhik]

^^nope there National Interstate does not deal with natural disasters...just with RVs, 18 wheelers, cars, and boats...

[Crysco]

Insurance companies and financial institutions will probably always be around. It is unfortunate that more people do not self insure. Liability insurance is helpful but other than that why should you pay someone else every month if you had the cash on hand to pay for repairs. The hardest part is getting to that point.

From an investment stand point you should do some research, or talk to someone who will recommend something that meets your needs. Do you like risky investments with chance of higher return, or more conservative investments with maybe not as high of returns? These are things that need to be considered

[Korzhik]

^^I would love to throw some money in a few risky investments this summer...hopefully to hit something.

[warrensway]

insurance companies are always good to invest in look at Warren Buffett this isnt some kind of epiphany this is common knowledge

[warrensway]

I am posting a reply to my reply for one reason. NEVER I REPEAT NEVER invest in something RISKY. It is only risky if you know NOTHING. You need to understand that. No company is risky at all, it just depends on how much you know about the company, and if you are shorting it or going long. You should not look at stocks as risky at all.

[Korzhik]

^^^ true, but the risky part is investing all of you money into it. when you build a portfolio with more than 40 stocks, on average, your risk stays about about 20%. the less stocks you have, the riskier the investment, even if you know everything about the company. look at past companies; people thought they knew so much about every company in the technology market in the beginning of the 2000s but many people lost a lot of money then. and there is also the enron situation. so by diversifying your portfolio is the only way to minimize your risk, even if you know everything about a particular company.