ICUMD

Struggled for years with this one. Value is locked in Fairfax India for sure. Fairfax always realises value based on their book value calculation. Investors will possibly realize value based on speculative events. That makes this at best a speculative investment in my books. Therefore my rationale to move on. I still like that airport and hope to visit it one day.

Decided to entirely liquidate my large position in Fairfax India. While I think Bial is a great opportunity, their inability to execute an IPO over so many years suggests they are bogged down in burocracy. I suspect they have a lot of competition for quality assets. Management execution has been poor. Saw better opportunity elsewhere.

Sold loosers. Bought a lot of Google.

Googl

Agree, great explanation. I would add that cash flow (ie. Income, Dividends) has a tremendous optionality that is under recognized. Particularly enjoy targeting undervalued high dividend paying equities with cash flow, knowing that my 'gun' will be reloaded in 3 months time to shoot again. The key is to ensure the reload gets bigger after every shot.

Rise of the New Indian Elite

Me too. My best performer. My split adjusted cost price for AVGO is $22.60. Ironically, it wasn't a great deal when I bought it around 2018. There is a lot of AI hype currently so hard to find value in this sector IMO. Having said that, share price appreciation can be explosive. Sometimes it is worth making a small long term bet in a tech infrastructure regardless of valuation. Just be prepared to average down a couple of times and hold on. Why did I buy it in the first place? 99% of internet traffic goes through Broadcom Infra. And Hock Tan is an an awesome guy.

BNS 39% BMO 24% RY 2%, TD 1% BABA 5% FIH.U 10% AAPL 5% AVGO 3% CNR 3% CP 5% BAM/BN 5% Good dividend stocks are guaranteed to make you smile 4x per year.

More BNS

Anchorage. What the may opt to do is use Anchorage as the vehicle to purchase IDBI. If I understand correctly, BIAL is already under Anchorage and a portion of Anchorage has been sold to Omers. They could procure additional private capital through Anchorage to purchase IDBI. After which, they would seek a public listing on the Indian exchange. This would explain the delay in getting the Anchorage publicly listed. They are busy elephant hunting.

Value of primary care (Family) physicians being eroded in Canada. Nurse practitioners and pharmacists now diagnosing and prescribing. Ironically, MDs are bound to a government set fee schedule for remuneration while RN practitioners and pharmacists can bill patients privately.

Likely a lot of personal factors for that person. Regardless of what one earns, it can always be outspent or mismanaged. Also, having a degree or skill doesn't equate to using that degree to it's full potential.

A successful bid for IDBI should hopefully act as a catalyst for positive share price re-evaluation. Will be interesting to see how they structure this large acquisition.

Valuation is a funny thing. Canadian Mattress co. = 1.7 Billion CDN 64% of Third largest Indian airport= 500M USD Worth waiting on Fairfax India. $14 /share is quite laughable. Guaranteed, they'll double ridership from 37M to 70M in 3 yrs. T3 will be the final major aero capacity they will build by 2030, before reaching saturation. Then all subsequent infra investment will provide solely non aero revenue. Should be a cash generating machine. Not to mention their shot at a control position in IDBI within the year.

Looks like BIAL is pressured to get involved with the Hosur airport, despite proximity to BIAL. They have protection until 2033 not to have a competitor run airport within 150km of BIAL. They may not have any choice but to build it. At least they are getting first right of refusal. BIAL capacity will be reached by 2033. Then comes the next question, of how they raise funds. Share issuance? IPO? Private investors? https://www.moneycontrol.com/technology/tamil-nadu-govt-dials-fairfax-backed-bangalore-international-airport-to-set-up-hosur-airport-article-12758336.html

https://timesofindia.indiatimes.com/city/bengaluru/kempegowda-international-airport-sees-25-rise-in-international-passengers/articleshow/111270365.cms

@SafetyinNumbers thank you for sharing this info. I suppose if someone wanted to develop a large position quickly in a thinly traded company, this would be the way to do it. Nice to see it head higher, though time will tell it's holding power. Price is set by the small hands that trade. Perhaps a harbinger of good news to come.

Anyone note the afterhours trading with a $15.15 close in FIH.U? Huge spike in volumes also. Didn't think this traded after hours. Buybacks?

@Libs seems a bit dramatic. But hard to anticipate solutions. My bet would be on using EV cars to power the grid during surge demand.

Yahoo Finance: https://finance.yahoo.com/quote/GMRINFRA.NS. Looking at GMR airports and it's performance as a public company is the best reason I can see to own Fairfax India at current prices. I would expect BIAL would follow a similar trajectory with a significant pop on IPO.

@SafetyinNumbers The issue with a sidecar structure is that it values the management capabilities instead of a capital investment. I don't know how to value what Fairfax India management actually brings to the table in such a case. I would therefore value a sidecar structure at 0. Open to hear other opinions.

@rajpgokul Thank you for this insightful write-up. One question I'm still unclear on is how they will generate the cash flow to enact share buybacks or purchase new businesses? Aside from BIAL IPO and share issuance, or taking on more debt, i can't see any other options.

Never said markets are rationale!

Reason for the volatility: https://www.business-standard.com/finance/news/rbi-appointed-auditor-completes-the-special-audit-of-iifl-finance-124060601086_1.html

Hopeful that Ben Watsa will be a catalyst for getting things going at Fairfax India. Since he's young, and hopefully 'hungry' to make a name for himself outside his father's shadows, Fairfax India might be the vehicle for him. It seems that Marvel has a market cap of about 300M. Much better prospect with Fairfax India at ~2 B. Also, Fairfax India needs cash. So, now that elections are over, they better start aggressively looking to get an Anchorage listing or start selling some of their non core businesses. Without cash, this company is dead in the water.