Leaderboard

I was trying to determine if it was a concentration issue or a hurdle rate issue. Turns out it was the latter. I recently presented to a bunch of investors on the top 3 reasons why they didn’t own Fairfax and hurdle rate was #3. My own analysis suggests high teens+ ROE is more likely for the next 5 years so I’m happy to buy at this price. Fairfax has a hurdle rate of 15% themselves and they are buyers a hundred plus dollars higher which is nice confirmation.