Aon plc: Best Nearby Cap-Gain Wealth Building Prospect (NYSE:AON) – Seeking Alpha
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Investment Thesis
21st Century paces of change in technology and rational behavior (not of emotional reactions) seriously disrupts the commonly accepted productive investment strategy of the 20th century.
One required change is the shortening of forecast horizons, with a shift from the multi-year passive approach of buy&hold to the active strategy of specific price-change target achievement or time-limit actions, with reinvestment set to new nearer-term targets.
The Insurance industry has had serious disruptions during the Covid-19 pandemic and few corporate participants have been able to keep profits under control. Aon plc (NYSE:AON), an insurance vendor, has more dimensions under its control than do many provider.
Description of Equity Subject Company
“Aon plc, a professional services firm, provides advice and solutions to clients focused on risk, retirement, and health worldwide. It offers commercial risk solutions, including retail brokerage, cyber, and global risk consulting solutions, as well as acts as a captives management; and health solutions, such as health and benefits brokerages, and health care exchanges. In addition, it offers strategic design consulting services on their retirement programs, actuarial services, and risk management services; advice services on developing and maintaining investment programs across a range of plan types, including defined benefit plans, defined contribution plans, endowments, and foundations for public and private companies, and other institutions; and advice and solutions that help clients in risk, health, and wealth through commercial risk. Aon plc was founded in 1919 and is headquartered in Dublin, Ireland.” – Source: Yahoo Finance
Yahoo Finance
These growth estimates have been made by and are collected from Wall Street analysts to suggest what conventional methodology currently produces. The typical variations across forecast horizons of different time periods illustrate the difficulty of making value comparisons when the forecast horizon is not clearly defined.
Risk and Reward Balances Among Insurance Industry Participants
Figure 1
blockdesk.com
(used with permission)
The risk dimension is of actual price drawdowns at their most extreme point while being held in previous pursuit of upside rewards similar to the ones currently being seen. They are measured on the red vertical scale. Reward expectations are measured on the green horizontal scale.
Both scales are of percent change from zero to 25%. Any stock or ETF whose …….