I am still scratching my head at the wild divergence in performance [Jun 18, 2008: A Very Strange Divergence in Title Insurance] between our 2 title insurance stocks - Fidelity National Financial (FNF) and First American (FAF). One thing the recent action has done is created almost identical valuations at around 10x 2009 estimates, so at this time I don't see a major advantage of holding both anymore. I am going to close the weaker of the two charts, FNF - and take a 30% loss on the last 0.75% stake. We have a reasonable 5% loss in the remaining stash of FAF.


If the past 15 years are any indicator this is the point that FNF will begin to outperform and FAF will crumble! :) In theory both should be somewhat hostage to mortgage rates but this divergence says something 'extra' has been percolating lately.

Been cleaning out the portfolio of some underperformers the past week or two, to get leaner and hopefully meaner, so this is another one under that vein.

Long First American in fund; no personal position