Author Topic: Hamblin Watsa Investment Counsel Investment Decision Process  (Read 2918 times)

Parsad

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Re: Hamblin Watsa Investment Counsel Investment Decision Process
« Reply #10 on: March 25, 2019, 03:22:37 PM »
The way it used to work before Wade Burton was appointed managing director was that they had 5-6 of the core group/old guard...Prem, Brian, Roger, Chandran, Sam & Francis (when he was there)...Tony Hamblin before Francis, etc.  They would make the broad capital decisions after the senior analysts provided their reports.  Prem would have the final say.  Each of the analysts were given smaller amounts to deploy, while the old guard deployed the bulk of the capital and oversaw billion/multi-billion portfolios.  They would also go through sessions on any capital ideas where others would try and kill the idea.  If it passed, then capital is allocated.

Today, I'm not sure exactly how it is done, but it may be worth asking at the next meeting.  Paul is President of Fairfax, Wade is essentially the managing director, but some of the remaining old guard, including Prem, still oversee and provide advice.  But I think the bulk of the capital decisions are now made by the next generation (Paul, Wade, Lawrence, etc).  The one thing that Fairfax shareholders shouldn't worry about is succession.  They've essentially passed on core duties now to Paul, Andy Barnard, Peter Clarke and Wade Burton.  I think that eventual transition will be far smoother at Fairfax than at Berkshire or Markel. 

And in terms of the investing team...they won't be as good on the bond side as Brian was (but who in the world really is), but the bulk of them are Cundill proteges, worked for and with Fairfax's team and are very well-established value managers.  Fairfax is extremely deep in nearly every part of their business!  Cheers!

Did Brian retire?

No...no.  But I suspect he's slowing things down a bit like Prem.  A good question would be has Brian ever taken on a protege and who is it?  Cheers!
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