Parsad

Are you suggesting that accounting earnings and cash flow also has nothing to do with earning power? It's easy to negate the value of accounting when it comes to intrinsic value, but accounting remains the only way to accurately gauge intrinsic value. The full quote is: "Proper accounting is like engineering. You need a margin of safety. Thank God we don't design bridges and airplanes the way we do accounting." Nothing wrong with accounting or book value, as long as you understand why it is so. Cheers!

Of course it makes sense. Fairfax buying their stock at or below book value means that they are effectively getting a 15% ROE on the buyback. If they are paying at book or higher, their return is lower than their long-term goal of 15% ROE. Being below intrinsic value, but above book value, is not accretive to present earnings, cash or book value...effectively, you are getting a return below what their long-term goal is. Where is stock price versus book today? Thus, investors are better off if FFH holds on to the cash and waits for opportunity, or returns some of that cash in buybacks or dividends if they don't feel they can deploy all of it. Cheers!

Yup. While dividends aren't particularly tax-efficient in a holding company, getting income in various streams from my investments (mostly capital gains, some interest income and a modest amount of dividend income) and operating businesses (earned income taxed at a favorable CCPC rate)...the tax burden isn't onerous and if Fairfax pays a modest amount in dividends is perfectly fine. Cheers!

I think the nominal loss in taxes from a dividend for higher income earners is offset by the fact that the valuation of the company is higher and buybacks just won't be as accretive as they were 1-2-3 years ago. As ineffectual as dividends may be, buying back shares when they aren't accretive to earnings and intrinsic value is also foolhardy. And both should only be done if you cannot allocate that capital at reasonable rates of return. With 95% of my FFH shares in non-taxable accounts or a corporate account, I'm fine with a modest dividend increase. It won't kill me to pay my fair shares of taxes. Cheers!

Hi Daphne, Happy New Year! Yes, combined with the increase in valuation, they probably want to spread the wealth as buybacks solely aren't as attractive as when the stock was much cheaper...continue their usual 3-year buyback program and increase the dividend. Shareholders have to remember that there are a lot of employees who own Fairfax shares. The dividend is their income without having to sell significant portions of FFH as they retire. Cheers!

I think Prem's done a fantastic job of buying back shares when they were cheap and then distributing capital to shareholders through dividends. I was expecting some sort of increase to the dividend, but 50% is huge and he obviously believes it is comfortably sustainable. The man probably has to replenish his non-FFH $150M war chest after committing it all to Fairfax shares during the pandemic. He also has not received any sort of salary increase since what...the year 2000! Thanks Prem! Cheers!

He was a huge original trilogy SW fan...the primary reason he became a film maker. https://comicbook.com/movies/news/dune-star-wars-inspired-denis-villeneuve/ Glad he's making Messiah. Should also be terrific! Cheers!

Your assumption is that when investors hold cash, they are holding for long periods of time. Which isn't true in many cases. Cheers!

Wishing you all a wonderful 2024! Cheers!

Third "Dune 2" trailer looks spectacular! Geez, they should have let Denis Villeneuve do a Star Wars franchise! https://www.imdb.com/video/vi2902968089/?ref_=vi_tr_ma_vp_3 Cheers!

Thanks dealraker! I'm at the point now where I may have to change up my style a bit. I've got more than enough to last me if I just hit a few doubles here and there. No need for the homeruns anymore. Cheers!

Only leverage was some Macy's call options in the non-taxable accounts. Did not hold Macy's in my corporate or cash accounts. Cheers!

My brokerage accounts do a time-weighted return accounting for inflows and outflows of capital. Cheers!

Up 61% on average in corporate, non-taxable accounts. Cash accounts were up 26%...they were half Fairfax or Fairfax & some Meta. Non-taxable accounts are now about 65% cash and rising as I roll over t-bills...these are opportunistic accounts. I maintain cash accounts at 50:50 Fairfax and cash...totally comfortable holding FFH long-term...will do far better than just t-bills and the stock is liquid enough. Corporate account is 35% FFH, 35% other long-term equities and 30% cash...this is long-term, quality holdings that compound nicely. 2023 may have been my single greatest year in dollar gains, and is pretty close to number 1 in overall percentage return personally! Cheers!

https://finance.yahoo.com/news/worlds-largest-ree-lithium-discovered-160012987.html Cheers!

Wishing you all a wonderful Christmas! The vast majority of members on the COBF are doing great or very comfortable. Please remember those less fortunate this season...many have been hit harder than usual...food banks are near breaking points in many areas. May 2024 bring you further prosperity and happiness! All the best, Sanjeev

Correct! Cheers!

https://finance.yahoo.com/news/china-real-estate-meltdown-battering-230000975.html Cheers!

https://finance.yahoo.com/news/forecasting-tool-hasnt-wrong-70-100600330.html Cheers!

I thought the Blackstone video was the funnier one...especially once they began the song/tour. Watching Steve Schwartzman wearing the gold lamme jackets and pants was worth it! Also liked the jabs at Blackrock. Cheers!

Great analysis Viking! Cheers!

That was damn funny! Cheers!

https://www.cnn.com/2023/12/11/media/sports-illustrated-ai-articles-ceo/index.html Cheers!

Yeah, no. Funny what a difference a month can make! Cheers!

Glad things turned out well! Definitely an investment with incredible results. Cheers