Author Topic: Prem Buying - WoW!  (Read 10482 times)

ValueMaven

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Prem Buying - WoW!
« on: June 15, 2020, 05:10:36 PM »
Announcement just hit - Prem has acquired about $150m worth of Fairfax shares in the open market!!  Way to step up!!  He is now calling Fairfax ridiculously cheap. 


StubbleJumper

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Re: Prem Buying - WoW!
« Reply #1 on: June 15, 2020, 05:41:18 PM »
In fairness to this forum's members, TwoCities and others called it cheap 6 or 7 weeks ago. 


SJ

Bryggen

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Re: Prem Buying - WoW!
« Reply #2 on: June 15, 2020, 05:45:03 PM »
Not sure how to interpret that. You rarely see CEO shares purchases announced by a press release. You usually see it through the regulator flings. While this is by any mean a positive event, I feel it is being emphasized to encourage the share price to appreciate. A move out of desperation at a time where share price took a beating the past month or so.

I would be curious to hear from our experienced members.

Maybe I am reading too much into it....

Maybe nothing more than an actual good news!

Parsad

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Re: Prem Buying - WoW!
« Reply #3 on: June 15, 2020, 10:27:45 PM »
Not sure how to interpret that. You rarely see CEO shares purchases announced by a press release. You usually see it through the regulator flings. While this is by any mean a positive event, I feel it is being emphasized to encourage the share price to appreciate. A move out of desperation at a time where share price took a beating the past month or so.

I would be curious to hear from our experienced members.

Maybe I am reading too much into it....

Maybe nothing more than an actual good news!

Are you kidding me?!  The CEO of the company puts $150M of his outside money into Fairfax and you think it's an act of desperation.  A bunch of us said that it was dirt cheap back around late March, early April, and we backed the truck up.  Now the CEO is telling you the same thing and you still can't wrap your head around it.  I would stop worrying about Fairfax's price and go back and read Securities Analysis by Ben Graham.  This is a valuation and analytical issue, not a psychological one!  Cheers!
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petec

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Re: Prem Buying - WoW!
« Reply #4 on: June 16, 2020, 01:35:28 AM »
Not sure how to interpret that. You rarely see CEO shares purchases announced by a press release. You usually see it through the regulator flings. While this is by any mean a positive event, I feel it is being emphasized to encourage the share price to appreciate. A move out of desperation at a time where share price took a beating the past month or so.

I would be curious to hear from our experienced members.

Maybe I am reading too much into it....

Maybe nothing more than an actual good news!

Are you kidding me?!  The CEO of the company puts $150M of his outside money into Fairfax and you think it's an act of desperation.  A bunch of us said that it was dirt cheap back around late March, early April, and we backed the truck up.  Now the CEO is telling you the same thing and you still can't wrap your head around it.  I would stop worrying about Fairfax's price and go back and read Securities Analysis by Ben Graham.  This is a valuation and analytical issue, not a psychological one!  Cheers!

+1

Most buys aren't publicised with a press release.

But most buys aren't $150m.
FFH MSFT BRK BAM ATCO LNG IHG TFG

Patient Investor

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Re: Prem Buying - WoW!
« Reply #5 on: June 16, 2020, 06:35:15 AM »
I believe that Fairfax was required to issue a press release regarding the share purchases by Prem Watsa. Per the most recent information circular filed March 6 2020, the Sixty Two Investment Company owns 50,620 subordinate voting shares and 1,548,000 multiple voting shares, representing 41.9 percent of the total votes attached to all classes of shares and Prem Watsa, Chairman and CEO, controls Sixty Two and himself beneficially owns an additional 258,790 subordinate voting shares for a total of 42.5 percent of the total votes prior to the latest purchase. As an insider and a significant shareholder (only one over 10 percent) and as a material event they would be required to make the disclosure.

Bryggen

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Re: Prem Buying - WoW!
« Reply #6 on: June 16, 2020, 06:57:36 AM »
Not sure how to interpret that. You rarely see CEO shares purchases announced by a press release. You usually see it through the regulator flings. While this is by any mean a positive event, I feel it is being emphasized to encourage the share price to appreciate. A move out of desperation at a time where share price took a beating the past month or so.

I would be curious to hear from our experienced members.

Maybe I am reading too much into it....

Maybe nothing more than an actual good news!

Are you kidding me?!  The CEO of the company puts $150M of his outside money into Fairfax and you think it's an act of desperation.  A bunch of us said that it was dirt cheap back around late March, early April, and we backed the truck up.  Now the CEO is telling you the same thing and you still can't wrap your head around it.  I would stop worrying about Fairfax's price and go back and read Securities Analysis by Ben Graham.  This is a valuation and analytical issue, not a psychological one!  Cheers!

Take it easy on me! ;)  All I was trying to say is that I have never seen a PR issued to announced a CEO's purchases of the company's stock. This is rather an unusual event and I was questioning the purpose (if any) of doing it that way. I realized I may have used the wrong word (desperation). Thanks to Petec for pointing out the fact that the size of the purchase may be the reason it is announced through PR. That being said, that aside, it is great news for sure and we all (shareholders) benefit from that vote of confident Prem places in FFH as evidenced today with the nice pop in share price. Cheers!
« Last Edit: June 16, 2020, 12:12:37 PM by Bryggen »

Xerxes

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Re: Prem Buying - WoW!
« Reply #7 on: June 16, 2020, 07:05:53 AM »
Key point is that he is putting back money in the franchise worth 6-7 times his annual dividend that he takes out. This is not options/grants or no-cost money. At least I am happy to say that I got some lower than Prem did at $350 CAD.

Somehow I donít think he is going to do the same thing for Fairfax India.

TwoCitiesCapital

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Re: Prem Buying - WoW!
« Reply #8 on: June 16, 2020, 10:20:25 AM »
In fairness to this forum's members, TwoCities and others called it cheap 6 or 7 weeks ago. 


SJ

Lol +1, though I didn't buy $150 million to prove it

Basically just replaced 1/2 of the position that I had closed back in 2018/2019 because I couldn't get the math to work at $500-600 USD. Much lower bar at sub-$300

ValueMaven

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Re: Prem Buying - WoW!
« Reply #9 on: June 17, 2020, 04:45:53 AM »
Good for Prem ... the more I thought about this - the more I liked it!!!!

I really wish WEB did something similar w/Berkshire.  IMHO Berkshire is cheaper then FFH