Leaderboard

Fairfax has had an amazing run the past 3 years - the stock is up about 200% - so it is hard to argue that the stock is unloved or even under-followed today (maybe i need to update my view on this…). That is an amazing increase. The response from the analyst at RBC highlights just how long it takes for the narrative around a company to change. It takes many years. A good example is Apple. Apple’s stock bottomed in 2013. It took 7 years - right through until 2020 - for the old narrative to be fully exorcised and for the new narrative to become entrenched. And a lot of money was made by patient shareholders. The key for investors in Apple during this period of time was to simply hold their position - to sit on their hands. That is probably the key lesson here: patience. As long as the story / fundamentals remain intact, holding though the update in narrative phase (also called multiple expansion) can be extremely profitable for shareholders. Growing earnings + increasing multiple + lower share count. This was Apple’s secret sauce and over a 9 year period it gave shareholders a 12 bagger.