Duke In Shadows

such a confusing mess of holds and similar named corps

this narrative of Prem supposedly making capital allocation decisions for philanthropic reasons is tired.

Pretty ignorant take

LULU would be much much worse option, for reasons outside of the cool factor but on the cool factor as a member of the Gen Z community I can tell you UA is starting to make a comeback (really has gone down since 2015 period) so seeing a comeback in popularity. LULU on the hand stopped being cool in the 2023-2024 period, it also has way more direct competitors, alo, even on. so while you could argue the whole sector is not a great place to allocate capital (which I would agree with) LULU is a bad example. they very clearly have high conviction and are taking a more activist role, wade Burton has more of an informational advantage than any of us, so just allow them to allocate capital its not sizeable anyways. the brand doesn't need to get back to 2005 level of coolness, much like constellation doesn't need to get back to crazy 2024 trading multiples in order to be a good investment.

Globe article on FFH backed Blue Ant Media Globe and Mail - Blue Ant Media

without a doubt his right hand man was Rick Salsberg. The setup of Ben Watsa as Chair, Peter Clarke as CEO, Wade as Head of HWIC will without a doubt be the three critical people for the future of FFH. I like all three + think they're super sharp which gives me much comfort. Had an excellent conversation with David Sokol this weekend about succession and I share his view that FFH is incredibly well setup for the future, much better than its southern cousin. Buffett almost never left Omaha. Prem spends half the year on his plane. Much different mentality and end result.

first thing every new person looking at FFH should understand. Truly amazing allocation. https://x.com/DukeInShadows/status/2041222481772515794?s=20

you couldn't pay me to hold SPY today.

it's a very anecdotal conversation. I've observed many so called "value investors" or "deep value investors" not understand why things are cheap or have a catalyst for it to change. but there are certainly others who do.

Asset flipping for sure not. a natural buyer existing does not mean the investment was structured around it. perhaps a feature.

two things. this is Soros not Druck: "it's not whether you are right or wrong, but how much money you make when you are right and how much you lose when you are wrong" the part on selling assets is interesting. When you listen to the CEO of Sleep Country Canada around the time Fairfax acquired the company, he explained that they chose Fairfax over several private equity firms partly because of Fairfax’s long-term approach. They were looking for a permanent home, and that played a big role in their decision. The deal flow Prem and company get over the next decade will depend on how they treat their private businesses. If they simply flip companies like Peak or Sleep Country in two years, they won’t have the same reputation as long-term owners.

Erkan has had a controversial recent history in the same way David Sokol did before his Fairfax tenure. Prem is willing to back talented, top notch people who have had a setback or two. Though I will say she left 1.5 yrs before the eventual collapse before the rapid rate hikes and asset-liability mismatch that sunk the bank. she may have also left because she saw things she didn't like. either way its all speculation. The point is she's clearly won Prem over and his judgement of character is as high as anyone's.