Tag Archives: insurance

Fairfax Financial 2012 results update

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

Posted in Stocks | Tagged , , | 1 Comment

Aflac (AFL): the duck’s got game

Aflac (AFL) is currently one of my favorite undervalued dividend stocks. I’ve mentioned it briefly in two prior posts (here and here). The company’s core business is strong and has great growth prospects. The current market environment has it quite undervalued and thus presents a great opportunity for patient long term investors. In this post I’ll describe why I think AFL is such a good investment. AFL is an insurance company at its core. It provides a unique type of insurance, supplemental health insurance, which gives it a heads up on competition. The first thing that matters for an insurance … Continue reading

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Longevity insurance – not worth it

There was a recent post at the Times’ Bucks Blog about Longevity Insurance that caught my attention. I decided to run some numbers to see what returns are implied in the current prices of longevity insurance and compare that to the risks, and the alternative of just keeping your money and investing it yourself. Lets dive in. Longevity insurance seems to be just a fancy new name for a type of product that’s been around for a long time, a deferred annuity. As the Bucks Blog says in the title of their post longevity insurance is just a way of … Continue reading

Posted in Bonds, Retirement | Tagged , , , | 2 Comments

Is Fairfax Financial a better value than Berkshire?

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

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Fairfax Q1 2011 Results – better than first blush

Fairfax Financial (FFH.TO, FRFHF.PK) reported Q1 2011 interim results on April 28, 2011. The press release can be found here. Below is the high level summary from the press release. Fairfax Financial Holdings Limited (TSX: FFH)(TSX: FFH.U) announces a net loss of $240.6 million in the first quarter of 2011 ($12.42 per diluted share) compared to net earnings of $418.4 million in the first quarter of 2010 ($20.38 per diluted share). The decrease in earnings arose primarily from the impact of $311.3 million of pre-tax ($217.7 million after tax) Japan earthquake losses net of reinsurance and reinstatement premiums and from … Continue reading

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Fairfax reports 2010 results – still a screaming buy

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

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