Author Topic: Fairfax 2017  (Read 50141 times)

petec

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Re: Fairfax 2017
« Reply #10 on: August 01, 2017, 05:09:52 AM »
Thanks.

I have a growing impression that on the investment side Fairfax is becoming a brain trust of good executives, which allows it to build platforms that create value over time.   Obvious examples are Fairfax India and Africa, but I'd add Cara (restaurants acquisition platform created by Fairfax and run by the ex-CEO of an old Fairfax investment, The Brick) and arguably TCIL and Grivalia (which is now controlled by FFH).   Even Blackberry brings John Chen into the fold and Richie Boucher is now on the board at Eurobank.   I am starting to think people are wrong to say that Watsa hasn't learned the lesson that Munger taught Buffett about quality.   Sure there's some cigar butt stuff but the equities increasingly seem to be concentrated in good platforms containing growth companies bought cheaply and run by exceptional people, often founders.   The convert+warrant deals seem to lean the same way - exceptional people involved in all of them and Fairfax is starting to look like the centre of a web of good people and deep knowledge (e.g. in ag commodity storage and distribution via AFGRI, NCM, AGT).

Interesting to know a bit more about ICICI Lombard in this context.

I thought they had to sell ICICI Lombard completely, rather than just down to 10%.


villainx

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Re: Fairfax 2017
« Reply #11 on: August 01, 2017, 07:46:03 AM »
-in a perfect world we will see the Lombard sale' proceeds all go into share buy backs before the investing world wakes up to this story.

You mean Fairfax?  Has Fairfax ever meaningfully repurchased (and wisely too)?

Is there still issue with their debt?

Jurgis

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Re: Fairfax 2017
« Reply #12 on: August 01, 2017, 07:50:49 AM »
I just love how this board goes through love hate cycles of companies.


Love cycle on for Fairfax.

For now.

 8)
"Before you can be rich, you must be poor." - Nef Anyo

petec

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Re: Fairfax 2017
« Reply #13 on: August 01, 2017, 07:53:36 AM »
I just love how this board goes through love hate cycles of companies.

Love cycle on for Fairfax.

For now.

 8)

My love has been fairly consistent, actually.   Possibly too consistent.

Jurgis

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Re: Fairfax 2017
« Reply #14 on: August 01, 2017, 07:55:47 AM »
I just love how this board goes through love hate cycles of companies.

Love cycle on for Fairfax.

For now.

 8)

My love has been fairly consistent, actually.   Possibly too consistent.

Yes, part of the cycle is that lovers (predominantly) post. Then haters predominantly post. Repeat.
The other part of the cycle are company specific events (or non-events).

 8)
"Before you can be rich, you must be poor." - Nef Anyo

John Hjorth

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Re: Fairfax 2017
« Reply #15 on: August 01, 2017, 09:14:12 AM »
Pete & Jurgis,

The more I think of it, the more I come to the conclusion, that it's actually true what you are posting. It's so Fairfax specific on this board - for historical reasons.

It's cyclical push back on the board. I love it, because one always learn something from it, no matter where the sentiment pendulum is with regard to Fairfax.

- - - o 0 o - - -

With Berkshire it is totally different on this board - Imagine the mud slinging from the Berkaholics that would take place if some presumptuous board member would dare to post in the separate Berkshire forum that he or she has started to short the heck out of Berkshire! - Perhaps even calling it a turd! Sanjeev would become soo busy! lol.

- - - o 0 o - - -

Now back to Fairfax.
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

villainx

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Re: Fairfax 2017
« Reply #16 on: August 01, 2017, 09:55:46 AM »
so far, i enjoyed all the discussion.  helpful and informative.

Viking

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Re: Fairfax 2017
« Reply #17 on: August 01, 2017, 10:02:10 AM »
Jurgis, investors move from love to hate and back again; as a result stock prices make massive moves. The interesting thing to me is these developments take years to play out. I think most investors miss them because they are too short term focussed.

In April 2013 Apple traded below $60; two years later it traded just below $150.
In Feb 2016 C stock traded below $40; today it is approaching $70 with lots more upside in the coming years.

FFH has had a very challenging 7 years with investments and there is lots of hate out there. With shares recently trading below CAN$550 I wonder if we have seen the bottom. For the first time in many years I have also established a decent position in Fairfax (just today). If Fairfax can get its investing mojo back in the coming years the stock will do very, very well.

From my perspective the 'love cycle' has not even started for Fairfax; its share price has been falling like a stone (until just recently). It will take years for Fairfax to hit the 'love cycle'. At that point I will be happy to sell my shares and shift into another opportunity. :-)

Dazel

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Re: Fairfax 2017
« Reply #18 on: August 01, 2017, 06:50:28 PM »


Let's be clear the only reason I am here is because Fairfax is really hated....and I feel obligated to stand up for them with my capital and my voice here as I will forever be grateful for the pile of money they made me but also for the lessons of their thoughts, success and failure over the years.

We have made piles of money in Bank of America and Citigroup too because we bought good companies when they were hated... This is one of those times to buy one of the best performing companies in stock market history cheap and make piles of money.

I have said my piece and it is completely biased...buy it or not....I am betting that Prem gets redemption...and Fairfax outperforms Markel and Berkshire substantially over the next Five years.




Dazel

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Re: Fairfax 2017
« Reply #19 on: August 01, 2017, 07:16:10 PM »

As Prem mentioned on a conference call earlier this year Fairfax repurchased 20% of their shares back in 1990.....He used Henry Singleton and Teledyne as an example of  rising share count to grow and Singleton's legendary buy backs that retired 80% of Teledyne's shares.

No one was listening.