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Tag Archives: fairfax
When people talk about Fairfax Financial and its chairman Prem Watsa, the description used most often is the ‘ Warren Buffett/Berkshire of Canada’. This is fitting in many ways as the companies are in similar lines of business, insurance, and have impressive investment track records. But how do they compare in term of returns to shareholders and their prospects for the future? This is kind of like picking between two stellar athletes. Your odds with either are much better than average but there are some important differences that I think give one the edge. First, we turn to historical comparisons. … Continue reading
It’s been a long time since I’ve written about Fairfax Financial. Last time was in October 2011 (see here for previous posts). Fairfax recently held their annual shareholder meeting which had some great information about the company, its results, and why it is a good investment. I’ll discuss some of the highlights of the meeting in this post. First, my investment thesis for Fairfax is pretty simple. Great long term returns, a super conservative and competent management team, and a leveraged but hedged investment. I’ll explain. In 27 years, Fairfax has generated a compound return of 23.3% a year on … Continue reading
On Sept 22 Fairfax Financial announced a 10% share buyback. Details here. As most of you know, in previous posts I’ve discussed why Fairfax is a great undervalued business. Currently the shares are trading at about 1.05 times Q2 2011 ending book valued of $358. If business for Fairfax just stays flat then the buyback plus the current dividend of about 2.7% would potentially generate a 12.7% return over the next year. Not too shabby in the current environment. When they report Q3 2011 results next month I think there are good odds that the book value of the business … Continue reading
My apologies for the lack of posting lately. I’ve had some significant repair issues with the RV and have been spending most of my time at a repair shop and re-routing travel plans for the next 2 months. So, I figured I’d jump in with a post on my favorite under valued insurance company. Fairfax Financial reported Q2 2011 results after the close yesterday. The press release can be found here. From the release; Fairfax Financial Holdings Limited (TSX: FFH)(TSX: FFH.U) announces net earnings of $83.3 million in the second quarter of 2011 ($3.40 per diluted share) compared to net … Continue reading
Top quality insurance companies are among the best values in the market today. I’ve written about Fairfax Financial before as the best stealth dividend stock in the world and about their CEO, Prem Watsa, who is often called the Warren Buffett of Canada. As it turns out, Berkshire Hathaway is pretty darn cheap these days as well. So, I thought I’d compare these two stellar companies side by side to see which one is the better value today. First, lets look at Berkshire. A recent valuation analysis from top value investor Whitney Tilson gave me the idea for this post. … Continue reading
I’m finally back from my exile in the woods. I would recommend the Gila National Forest in Southwestern New Mexico to anyone who wants a bit of peace and quiet. Now back to the business of income investing. There has been a lot going on in income investor land recently. Here are some of the items that caught my eye and what I think of them. Intel Q1 2011 earnings. Intel blew away earnings estimates in Q1. The corporate. server, and cloud computing markets are just going gangbusters, offsetting weak developed market PC demand. Although emerging market PC is doing … Continue reading
Fairfax Financial (FFH.TO or FRFHF.PK) reported results for 2010 a week or so ago. Before commenting on the results, I had been waiting for the annual letter from Chairman Prem Watsa and over the weekend it was posted to the site. I’ve posted on Fairfax before (here and here) and I called them a great stealth dividend stock. Well, despite posting ‘weak’ results for 2010 Fairfax continues to be undervalued, a great long term investment, and still a great stealth dividend stock. First, I highly recommend reading Prem Watsa’s annual letter for yourself. He’s not called the Warren Buffet of … Continue reading