About
Tom Gayner is an American insurance executive and value investor who serves as Co-CEO and Chief Investment Officer of Markel Corporation, one of the most successful specialty insurance companies in the world. Here's who he is:
Tom Gayner joined Markel in 1990 and has been instrumental in transforming it from a small regional insurer into a diversified financial holding company with over $20 billion in assets. As Chief Investment Officer, he manages Markel's investment portfolio using a long-term value investing approach inspired by Warren Buffett and Berkshire Hathaway. Under his leadership, Markel's book value per share has compounded at approximately 13% annually for over three decades, making it one of the best-performing insurance companies in history.
Gayner is known for his disciplined approach to capital allocation, combining insurance underwriting profits with patient, concentrated equity investing. He focuses on buying high-quality businesses at reasonable prices and holding them for extended periods, often decades. His investment philosophy emphasizes companies with strong competitive advantages, excellent management teams, and the ability to compound capital over time. Markel's portfolio includes both public equities and wholly-owned operating businesses.
Beyond his role at Markel, Gayner has become a respected voice in the value investing community through his annual shareholder letters, conference presentations, and mentorship of other investors. He's known for his thoughtful analysis, intellectual humility, and ability to explain complex investment concepts in accessible terms. His approach combines the operational expertise of running an insurance business with the analytical skills of a professional investor.
Tom Gayner's Best Quotes
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"We're trying to buy wonderful businesses at fair prices and fair businesses at wonderful prices."
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"Time is the friend of the wonderful business and the enemy of the mediocre one."
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"The goal is not to be busy; the goal is to be effective and create long-term value."
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"Insurance gives us the float to invest, but we have to earn that privilege through disciplined underwriting."
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"We're not trying to hit home runs every time. We're trying to get on base consistently and let compound interest do the work."
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"The best investment opportunities often come disguised as problems."
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"You can't manage what you don't measure, but you also can't manage what you measure too much."
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"Our competitive advantage is our ability to think long-term while others are focused on the next quarter."
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"Good businesses and good people tend to find each other over time."
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"The market will quote you a price every day, but you don't have to accept it unless it makes sense."
Written Works
Markel Corporation Annual Reports and Letters to Shareholders
Gayner's annual letters, often written jointly with other Markel executives, are considered among the best in the insurance industry for their clarity, insight, and educational value. These letters explain Markel's investment philosophy, provide detailed analysis of portfolio performance, and offer candid assessments of both successes and failures. His letters often include broader observations about markets, business cycles, and the art of capital allocation.
"The Markel Style" Investment Philosophy Papers
Through various publications and presentations, Gayner has articulated Markel's distinctive approach to investing, which combines insurance operations with equity investing. His writings explain how insurance float provides patient capital for long-term investments and how underwriting discipline translates into investment discipline. These papers have become case studies for other insurance companies looking to replicate Markel's success.
"Building a Business vs. Managing a Portfolio" Essays
Gayner has written extensively about the differences between traditional portfolio management and Markel's approach of building a collection of businesses. His essays explore how thinking like a business owner rather than a portfolio manager leads to better long-term results, lower turnover, and more patient capital allocation decisions.
Conference Presentations on Value Investing (Various)
Gayner's presentations at investment conferences, particularly the Berkshire Hathaway annual meetings and value investing conferences, have been compiled and widely circulated. These presentations cover topics like finding undervalued businesses, evaluating management teams, and maintaining discipline during market volatility. His speaking style combines practical investment advice with insights from running an operating business.