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Aloha 15PlusPercent,

It is this concern, and the change in its dividend policy, which has been a drag on FNF's stock.

I've spent nearly a decade in the real estate business and have spent nearly as much time investing in, working with, and studying the title insurance industry ... and all this background has me firmly believing that these fears are overblown.

Remember, title insurance is not a catastrophic type of product where you have to worry about hurricanes or earthquakes. (Good) title insurers are consistently profitable and simply need to manage costs and avoid doing anything completely stupid.

Don't get me wrong, title insurers could definitely get dinged as banks work through their mortgage portfolios, but it will be mostly collateral "who-else-can-we-sue" type legal cost driven by large class action law firms. But all title insurers are susceptible to these risks proportionally, so why not own the leader at the space at below stated book value?

Long FNF,

Andy L-C (TMFAloha)
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