Leaderboard

I agree, using a 0.9-1.1 x BV multiple makes sense. Here some additional catalysts: 1.) buybacks and how aggressive Fairfax is moving forward. Fairfax could take out 150,000 shares a month = US$90 million. If they did this for an extended period the stock would likely pop and likely trade north of the 1.1 x BV range. 2.) the investment community. Fairfax was a hated stock. As the investment community comes to understand the size, consistency and durability of future earnings, Fairfax could exit the penalty box and once again be viewed as an ok stock. This would push the multiple higher. 3.) real and growing earnings. In today's world near term cash type earnings are becoming more highly valued given their scarcity. Earnings at Fairfax will be primarily driven by underwriting profit and interest and dividend income, which is highly prized. ————— With Fairfax today we have the perfect set up for a stock: 1.) cheap valuation 2.) much higher and growing earnings 3.) growing PE multiple 4.) meaningfully lower share count We will see what actually happens in 2023.