Author Topic: Fairfax 2018  (Read 126545 times)

chrispy

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Re: Fairfax 2018
« Reply #440 on: October 05, 2018, 05:37:08 AM »
"Seaspan, the worldís largest non-operating containership owner, has announced its first significant investment outside the sector, suggesting it intends to diversify its business model."

https://gcaptain.com/seaspan-diversifies-as-it-steps-in-to-take-control-and-save-swiber/


FFHWatcher

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Re: Fairfax 2018
« Reply #441 on: October 07, 2018, 09:00:17 PM »
https://finance.yahoo.com/news/intention-normal-course-issuer-bid-113000070.html

Under its existing normal course issuer bid, Fairfax has purchased 700,539 of its Subordinate Voting Shares, which included Subordinate Voting Shares reserved for share-based payment awards, through open market purchases on the TSX during the last twelve months at a weighted average price per share of Cdn.$667.29. Fairfax has not purchased any Preferred Shares under its existing normal course issuer bid. (Fairfax has spent  $467,462,669.31 on share repurchases in the last year)

I can't see that many share purchases on Sedi.ca.  How else can FFH repurchase without reporting them on Sedi.ca ?   Or am I not seeing them for a different reason?

ourkid8

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Re: Fairfax 2018
« Reply #442 on: October 17, 2018, 03:03:52 PM »
I am dying to find out if they got more aggressive in buying back their stock during this selloff.  Earlier today, I just bought a large slug of stock at usd$501.  (I couldn't help myself)   I am very very pleased they repurchased close to half a billion in stock in the last year.  I definitely was not expecting that!!!



Excellent buy back prices!

While many do not pay attention to buy backs it is the secret math to a high share
Price over the longer term. Fairfax has reached critical mass....and I believe will follow Singletonís Teledyne model as long as we are cheap.
« Last Edit: October 18, 2018, 07:42:24 PM by ourkid8 »

wondering

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Re: Fairfax 2018
« Reply #443 on: October 24, 2018, 10:58:22 AM »
https://www.theglobeandmail.com/business/article-fairfax-merging-sporting-life-and-golf-town-but-stores-will-still/

"The Toronto-based company says the two sporting goods retailers will operate separately with their own branding and management teams, but will make joint investments in technology, staffing and their supply chains."

Dazel

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Re: Fairfax 2018
« Reply #444 on: October 25, 2018, 06:50:48 AM »


Buy every share you can Prem.
Every last one!

StubbleJumper

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Re: Fairfax 2018
« Reply #445 on: October 25, 2018, 07:07:33 AM »


Buy every share you can Prem.
Every last one!


Yes, I wonder how ffh views the current market.  Their own shares look quite cheap, but I wonder whether they will find something else that's been beaten up even more.  In any case, US$500m would buy back a considerable chunk of outstanding shares if the price would remain low enough for long enough.


SJ

ourkid8

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Re: Fairfax 2018
« Reply #446 on: October 25, 2018, 07:40:21 AM »
I really like how businesses within the Fairfax umbrella are working together to reduce costs across their businesses.  These investments are non material to Fairfax but it's great to see collaboration!

https://www.theglobeandmail.com/business/article-fairfax-merging-sporting-life-and-golf-town-but-stores-will-still/

"The Toronto-based company says the two sporting goods retailers will operate separately with their own branding and management teams, but will make joint investments in technology, staffing and their supply chains."

TwoCitiesCapital

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Re: Fairfax 2018
« Reply #447 on: October 25, 2018, 09:04:43 AM »
At this time next year, it's a pretty low bar for Fairfax to be generating $1+B in cash on its investment portfolio per annum.

Very conservative assumptions of 2-3% on fixed income and 3-4% on equities gets you there. Barring a recession, Fairfax is going to roll it's bonds at higher yields and be pulling in something like $400M just in coupon income as long as the Fed keeps hiking rates.

10-12x investment earnings without considering insurance at all is pretty attractive. I would love to see another $500M in repurchases this year.

petec

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Re: Fairfax 2018
« Reply #448 on: October 25, 2018, 09:31:06 AM »


Buy every share you can Prem.
Every last one!


Yes, I wonder how ffh views the current market.  Their own shares look quite cheap, but I wonder whether they will find something else that's been beaten up even more.  In any case, US$500m would buy back a considerable chunk of outstanding shares if the price would remain low enough for long enough.


SJ

The two arenít mutually exclusive. Buybacks ought to be from earnings, not float. Float can be put to work.

StubbleJumper

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Re: Fairfax 2018
« Reply #449 on: October 25, 2018, 12:40:47 PM »


Buy every share you can Prem.
Every last one!


Yes, I wonder how ffh views the current market.  Their own shares look quite cheap, but I wonder whether they will find something else that's been beaten up even more.  In any case, US$500m would buy back a considerable chunk of outstanding shares if the price would remain low enough for long enough.


SJ

The two arenít mutually exclusive. Buybacks ought to be from earnings, not float. Float can be put to work.


Most certainly they are not mutually exclusive.  However, the decision of whether to buy back shares or acquire a new sub that might have been unfairly beaten up by the market over the past month is largely a question of current cash balances at the holdco level as well as subsidiary dividend capacity and the ability of the holdco to potentially borrow more.

From my perspective, the holdco had somewhere between US$500m and US$1b of excess cash available at the end of Q2.  Some of that might notionally have been earmarked to buyback minority positions, but that might have changed with the drawdown in markets.  So, does FFH throw, say, US$750m of holdco cash at buybacks, or is there a new great sub out there somewhere that's been getting killed due to the market drawdown and the silly panic about the hurricanes which have already hit?  Do they juice the divvies from the subs to enable either a larger buyback or an opportunistic acquisition?  Or do they hold the line and just continue the Brit/Allied purchases?

The question of what to do with float is a bit of a different question.  My sense is that barring a drastic repricing of equities, FFH will likely hold the line on their strategy of holding short term fixed income.  That current strategy provides an obvious operating income win over the next year or two while not overcommitting to an equity market which is still historically expensive.

But, I guess time will tell.


SJ