White mountains insurance WTM stock in a downward trend

Since 2004 White mountains insurance stock has been in a strong downward trend. I believe the trend is your friend. That is unless there is a strong reason to reverse the trend the trend will continue. In 2004 they moved a lot of things (IMO smoke and mirrors) around in the company internally and it gave White mountains insurance (WTM) a nice short term boast in terms of stock price. However, the company for 4 years has been in a strong downward trend, since its dizzing highs around 600 dollars a share. I do not understand why fully, however, I do know the investment company of WTM was invested in large stock positions of mortgage back securities. These were approved by John Gillespie as he is the head of the WTM’s investment management firm. However, John sold 1.4 million dollars of WTM stock in the spring of 2008. I do not know why, it could have been for personal reasons. Overall I personally would not buy this stock for a long time to come until it shows any signs of life from this large downward trend. I am not an expert but rather an observer.

Tags: white moutains insurance, wtm