wondering

Wow! According to google finance, Fairfax India closed at 18.94 USD (or up 7.8%). Does anyone know the reason for such a big jump? I don't know if the Thursday before a long weekend (i.e. very low trading volumes) has anything to do with it.

Toronto, Ontario, Canada

http://www.newswire.ca/news-releases/fairfax-to-make-c190-million-investment-into-agt-food-and-ingredients-inc-636486103.html This is one of those preferred shares plus warrants deals.

http://www.fairfaxindia.ca/news/press-releases/press-release-details/2017/Fairfax-India-Completes-400-Million-Term-Loan/default.aspx I guess they will use this money further investments?

LOL

http://www.fairfaxindia.ca/news/press-releases/press-release-details/2017/Fairfax-India-to-Acquire-Additional-10-Interest-in-Bangalore-International-Airport-Limited/default.aspx

that appears to be a gain of approx 332M (12.18% X 3.1B) - (12.18% x carrying value of 371.1M). Please correct me if my math is wrong. I wonder how they couldn't sell more of it. I guess we'll find out on the next quarterly call.

Yes. The one thing that stood out for me is that Fairfax is looking to do similar deals in the US mid cap market, as they have done in the Cdn market (i.e., private placements of bonds/prefs with warrants with the various Cdn companies they have done in the last 6 months). The rest was kinda a repeat of what we heard at the AGM and 4th Q CC.

If I can add my two cents - I have attended the dinner for the last 7-8 years, missing only 1 because I was away for work. - I go by myself not knowing anyone there, but I always find someone to talk to. My table companions have been everyone from big-wig money managers to average-joes like me, but everyone has been friendly and open. - C&C is a great charity. If I remember correctly, Canada has one of the highest rates of C&C in the world. The money raised at the dinner is for a very worthy cause, and as I Canadian I am happy to support it. - The food is really good. - Even if you think the FFH guys are a bunch of dumbies (i.e., too much marco-forecasting, too many stinkers in their equity portfolio), there is enough other guests/speakers or traditional value-investors attendees to share ideas with. - I will continue to attend even if switches to a smaller venue. It would be a shame if it was cancelled altogether.

This is the only one I found. RBC_report.pdf

http://www.newswire.ca/news-releases/fairfax-financial-to-invest-150-million-in-mosaic-capital-607978226.html Wow! A busy time of year at FFH with all the news announcements.

For a overall view of the Chinese debt crises, please look up Michael Pettis. His blogs are excellent and he has written several books on various modern day debt problems.

Francis has my vote. My philosophy is that I buy his funds after a really bad year, and hold. I don't get too excited about a bad stretch of performance. I am fairly confident over the long haul, the performance would be better than anything I could do.

FFH increased their holdings in Torstar. http://www.fairfax.ca/news/press-releases/press-release-details/2016/Fairfax-Announces-Acquisition-of-Shares-of-Torstar/default.aspx down and dirty Torstar summary - dividend yield 6.9% (dividend cut twice already this year) - price to book .47 - no bank debt or bonds payable - Income statement is a disaster (many quarters of losses, consistently falling revenues) - they bought 56% interest digital media company VerticalScope for $200 million last year. - maybe its too early to say whether this was a good investment or not - they are currently trying to sell their printing facility in Vaughan, Ontario I have to admit that I have contemplated taking a nib of Torstar myself, (partly based on that the stock is so hated). But I chickened out thinking the price would go lower in a general market correction (which never seems to happen). I guess this represents a deep, deep value investment for FFH. Maybe they are seeing some hidden values in the assets that I have been too lazy to uncover.

Moore, Another source which briefly outlines the history before and after the 1929 Crash is Anatomy of the Bear by Russell Napier. It may help with what you are looking for.

http://www.fairfax.ca/news/press-releases/press-release-details/2016/Fairfax-to-Acquire-South-African-Insurer/default.aspx Apologies if this hyperlink does not work. I'm technical moron.

Good book, but tough read. I will probably re-read it soon. A knowledge in the history of financial markets is important and this book is a great source for that

There are a bunch of Sam Zell videos on YouTube. The above is a talk he gave at the University of Chicago a few years back. Around the 29 minute mark he discusses his investment in the Chicago Tribune newspaper. Interestingly, even though it was a terrible investment, he says that he would do the investment again because the risk-reward ratio was apparently so much in his favor. (Maybe this explains why FFH and Chou made the investment in Torstar).

I read the book several years ago. A few things stuck out in my mind as I was reading the book. - he was brutally honest - he was even more intellectual than I originally thought. I had the feeling that investing was only a sideline for him and that he would have been just as comfortable being a classics professor as being an investing guru (lucky for world he became a investing guru and not just a classics professor). - he was 14 years old he worked on a farm for the summer. The book he took with him to read while not working was a book on Greek grammar. I admire Ben Graham a lot and I wish I was as studious as he was when I was a student, but if I was 14, there would be no way in hell I would read a book on Greek grammar for summer pleasure reading. Maybe Sports Illustrated, maybe a detective novel, but Greek grammar?! Wow!

I liked this speech a lot. I find he is a better public speaker than writer. I found his book Anatomy of the Bear informative but very difficult to read.

The Richest Women in America - Hetty Green in the Gilded Age by Janet Wallach. The book is ok so far, but not great. I am still in the early chapters, and right now the author writes more about the 1800s than about Hetty Green.

Thanks everyone. This is very helpful. I was thinking of Cdn prefs too, although I am thinking prices may fall a little further.

Now that the company is over its IPO honeymoon stage, and the stock is trading very close to book value, and I am considering buying a little. My question is regarding the currency. The reporting currency is in USD. The functional currency is in INR. I am Canadian with Canadian dollars. I am concerned if the Canadian rises against the US dollar, it will greatly diminish my investment. Upon greater reflection, I am thinking my bigger concern should be how the Canadian dollar performs vs. the Indian rupee because the US dollar is essentially "in" and "out". Is my thinking correct?

Francis Chou

Chou RRSP Fund (reasoning - I buy Chou after he has had a bad year (2015 down ~ 12%). And he is 30% in cash ready to take advantage of opportunities where his sees it.) FFH (if, if, if deflation occurs in a meaningful way). Canadian preference shares (although I am second guessing myself on this one. There maybe more downside before it gets better).