Prem Buying - WoW!

[Xerxes]

Not to over analyze this, but:

Can we make the statement that of all the investments that Prem has done either personally or through FFH in the past decade, this one has a high chance of success with risk-reward tilted toward the upside and with good margin of safety, I.e  a classical  B Graham deep value type, in a world where that framework seem antiquated.

Maybe bank of Ireland come close. Though that was before I was following FFH so I wouldn’t know much of it.

Atlas/Seaspan I see that more as a growth investment and not Grahamiah type.

[My Own Personal Hedge Fun]

I entered a limit order to sell my Fairfax position at $370, just in case the price popped next day on this news.

Looks like I'm still holding. For now.

Debating if I'm holding just to get back to even, or because there is some actual value in the company and management.

[Parsad]

I entered a limit order to sell my Fairfax position at $370, just in case the price popped next day on this news.

Looks like I'm still holding. For now.

Debating if I'm holding just to get back to even, or because there is some actual value in the company and management.

If you didn't know when you bought, you might want to figure it out.  Cheers!

[ValueMaven]

Question: roughly how cheap was FFH trading when Prem bought? price to tangible BV?  price to normalized earnings?

[Parsad]

Question: roughly how cheap was FFH trading when Prem bought? price to tangible BV?  price to normalized earnings?

It looks like he bought at an average cost of $308 USD roughly or about $420-425 CDN per share.  It says he bought in the last few days before the press release...I would imagine it was around the 9th, 10th, 11th and 12th, where the stock was around $425 CDN or less and volumes rose.  If he is buying there, then I would imagine he is expecting a return of better than 15% annualized or more over the next few years.  Cheers!

[My Own Personal Hedge Fun]

If you didn't know when you bought, you might want to figure it out.  Cheers!

I decided to sell most of my position. I still have Fairfax India and willing to give that more time. Seems like they have a little more preference for quality assets in that portfolio, and I like India's 5-15 year growth potential.

[Parsad]

If you didn't know when you bought, you might want to figure it out.  Cheers!

I decided to sell most of my position. I still have Fairfax India and willing to give that more time. Seems like they have a little more preference for quality assets in that portfolio, and I like India's 5-15 year growth potential.

The irony is that Fairfax owns a good chunk of Fairfax India, and more importantly, generates really nice management fees and performance bonuses from Fairfax India.  If Fairfax India does exceedingly well, Fairfax will benefit handsomely.  If Fairfax India does average, Fairfax will still benefit from the fees.  I  would rather own the asset manager!  Cheers!

[undervalued]

So comparing FRFHF with JEF for the past 10 years, I own JEF for the past 10 or so years and it has been a value trap for that long. When comparing the 10 year chart with FRFHF, I sees similar behavior. Parsad, I think you also follow JEF and they have been trying to transform it these past two years. I have not been adding to JEF because I don't want to sink new money to it although I am still patient in holding and so far it has been a pretty big mistake as far as opportunity cost.

[bizaro86]

Question: roughly how cheap was FFH trading when Prem bought? price to tangible BV?  price to normalized earnings?

It looks like he bought at an average cost of $308 USD roughly or about $420-425 CDN per share.  It says he bought in the last few days before the press release...I would imagine it was around the 9th, 10th, 11th and 12th, where the stock was around $425 CDN or less and volumes rose.  If he is buying there, then I would imagine he is expecting a return of better than 15% annualized or more over the next few years.  Cheers!

The question then becomes is Prem expecting a 15% return a good predictor of future 15% returns.

[lessthaniv]

If you didn't know when you bought, you might want to figure it out.  Cheers!

I decided to sell most of my position. I still have Fairfax India and willing to give that more time. Seems like they have a little more preference for quality assets in that portfolio, and I like India's 5-15 year growth potential.

The irony is that Fairfax owns a good chunk of Fairfax India, and more importantly, generates really nice management fees and performance bonuses from Fairfax India.  If Fairfax India does exceedingly well, Fairfax will benefit handsomely.  If Fairfax India does average, Fairfax will still benefit from the fees.  I  would rather own the asset manager!  Cheers!

I think the upside on both is good. I give the nod to FIH.U as a deeper valuation opportunity but I own both!