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I believe they have increased ownership to 54%. Otherwise you are correct. This is a great start. I don't know what loans they may have taken on to fund T2 development, but the profitability allows for them to develop and refine and develop businesses within the existing physical structure. Also, will hopefully attract investors for a planned IPO under Anchorage, marking to market this key asset.

BIAL Record Profits - 63.3 M USD 2023 yr end. Finally some outstanding news I've been eagerly waiting for. I guess Fairfax India does know how to run airports. https://www.moneycontrol.com/news/technology/bengaluru-airport-most-profitable-in-the-country-in-fy23-ahmedabad-incurs-highest-losses-11859721.html

Using Starlink at my home right now. Live in a border city in Canada. Had terrible internet service from Bell, wired, but apparently at the end of a stretch of copper wire. Would cut out multiple times a day and very slow. Starlink has been transformative. 50-80bps, always connected with no drops. No issues streaming video or having a smart connected home now. A life saver. Downsides? Having to mount a dish to the roof with an ugly wire coming down the wall into the basement. Cost is expensive at $150/mo cdn. The price of rural living I guess.

BIAL. Wondering if anyone knows whether they are collecting their promosed 16% return on aero fees and 100% of non aero fees as set out in their operating terms with the government? My understanding is that the Aero fees are regulated at 16%, and assured by changes to the User Development Fees (UDF) charged to each passenger and set out in each control period. Have not come across a clear update on this question.

With the bulk of Fairfax India's valuation tied up in BIAL, a private company, there is no way of knowing if we are or are not ahieving that 15% compounded return. BV is only an estimate. Value will be unlocked only if Anchorage goes public or there is a SIB and Fairfax offers a fair price per share. Having said that, the share price performance over the last year or so wasn't bad considering the markets. We were impaired due to COVID affecting air travel. Hopefully 2024 offers some opportunity for fair exit of those interested in pursuing other opportunities.

Good to hear everyone hates it. Perhaps I have a high risk tolerance. Also, I like cash flow. My avg price is $58 Cdn. First purchased in the COVID lows of 2020. It is now retesting those lows. I recently added heavily at $56 In brief, Canadian banks form a core in my levered portfolio. BNS presents a very attractive investment with PE less than 8, dividend yield of 7.5%. 200 yr history, and the third largest of the Canadian banks. It remains highly profitable. Currently, valued the lowest in over a decade on multiple valuation metrics. New management in place should make this a more efficient bank. So I think future is bright. Fair value is ~ $85. Maybe it takes 5 years, but I think it will be less.

BNS 45% of my portfolio.

Hopefully they offer a SIB in the next 6-8 months.

Interestingly, Canada has in its history a heavy hand dealing with separatists during the FLQ crisis in the 1970s. In fact, Pierre Trudeau himself invoked the war measures act to suspend civil liberties. https://en.wikipedia.org/wiki/Front_de_libération_du_Québec#:~:text=It was considered a terrorist,people and injured many more. Seems to me that even Western nations can also have autocratic tendencies from time to time. On the other hand, that's what I expect from any good leader. Be it Pierre Trudeau or Modi - using autocracy selectively to maintain the unity and stability of a nation. Broken nations are not peaceful ones, nor ones that are safe to invest in.

Agree mostly. Trudeau should be upholding these values as a leader. Obviously, his priorities are elsewhere.

Events like 911 and Air India come from terrorist organizations, rather than individuals. In the case of Air India, there is no debate that militant Khalistani's held responsibility. A lot of innocent people died including children. Nijjar was a leader of this group having this terrible past. Trudeau could have discussed the issue of Nijjar's assassination privately with Modi. Rather, in accusing India publically (whether guilty or not), Trudeau makes many concerning unspoken statements. Most unspoken of all, his signaling of Canada as a safe haven for 'freedom of expression' once you have a Canadian passport. What a perfect breeding ground for extremism and terrorism. In any case, I suspect Trudeau days as Prime Minister will be ending in short order. Hopefully idiocy will be replaced with diplomacy.

https://www.hindustantimes.com/india-news/hardeep-singh-nijjar-faked-marriage-to-get-canada-citizenship-in-1997-report-101695397465458-amp.html Interesting character for Trudeau to support and risk trade relations. If the above was true, seems like he should have been deported back to India. Still awaiting to hear the 'evidence' India committed a crime on Canadian soil. Wonder why the delay?

Fascinating accusations. Let's see how the drama teacher does in this game of chess. First play: publically accuse a foreign country of crimes with no evidence and show unequivocal public support for a militant separatist movement.

It will be interesting to see where some of these major airlines make there travel hubs. Air India potentially making BIAL home would be transformative. Appears that many stars are aligning with improved global perception and opportunity in India, high profile and successes of indians abroad and the chance to lift 1 billion people out of poverty. Let's see the development over the next year.

The SIBs for Fairfax India are interesting. 1. They run counter to the BV performance fee generating structure of Fairfax. (Ie. They derive less performance fees) 2. They have failed to close the discount to BV and share price thus far. 3. They require capital which can be used to fund other purchases, therefore an opportunity cost. Yet, they have bought back via the SIBs in substantial quantity. My read on this is that the goal is to ultimately take this FIH.U private. Aren't all these SIBs essentially doing just that in piecemeal? Alternatively, they want to support share price and close the discount to help raise funds in the future, perhaps via Anchorage. Most certainly, the final chapter in this story hasnt yet been written. Hopefully some interesting deals and developments will be coming down the pipeline.

The past 5 years where the discount to BV arose were tremendously affected by COVID. BIAL, Fairfax India's prized asset was impaired during that time. I am optimistic that the next 5 years should see torrendous ridership growth and airport development progress. Trading in such low volumes, makes FIH.U a buyout candidate at some point. That is the main and perhaps only reasonable exit strategy for any significant holding by retail investors IMHO.

My home is comfortable and allows me to work earning a good income. A nice solid house in the country to keep me warm and dry, enough space at 2700 sq ft. And also waterfront as a bonus. Never plan to sell it. Couldn't care less what someone else values it for. Do not consider my home as an investment, though these days it would go for 1.5x my purchase price in 2012. OTOH, my condo in the city started getting hit with vacancy taxes which made it too much of a luxury to keep empty as a 'cottage' for personal use. So it's now rented.

Thank you for sharing this outstanding report. I skimmed it, but definitely worth a more careful read. Thailand airports seem like a good comparator to BIAL.

Fairfax India I think is a very good play on an excellent airport in BIAL. It is still in the first innings. My reasoning is that they get access to 30 million passengers per annum, growing to 90 million by 2030. When you factor in wealth effect and growing multiple streams of revenue within the airport grounds, of which they get up to 100% percent of non aero revenue, the potential is staggering. In theory, this should be a strong play on Indian demographics and growing economy. An ideal real estate investment.

Correct me if I'm wrong, but Buffett is able to access high quality investments like warrents or preferred shares, or raise capital at low rates to buy Japanese investment houses. These low risk home run plays are not accessible to the average investor. He keeps cash on hand to make these kinda plays. If he's buying, he's not waiting for a deal on a publically traded equity, at least at this stage of Berkshire. In other words, I think Buffet holds cash for different types of opportunities than the average investor.

Sitting at -35% cash. Holding mainly yield bearing equities. Don't like holding cash in this high inflationary environment, plus I can write off the interest.

BNS in the $63s CDN with 6.5% dividend.

@RetroRanger yes roads, pipes are infrastructure that need to be developed, and will provide compounding GDP benefits as they become established. A tremendous opportunity as I see it to bring millions 'online' Geopolitical conflict will always be there. Most countries have armies and politicians to protect their territorial rights. Caste system- education is the best way to level a playing field and allow upward mobility. In fact, even in North America, there is an informal caste system. Don't children of actors and actresses follow in their parents footsteps? A Rockefeller or Hilton inherit millions or billions while being 'socialites'? A Trudeau become prime minister even though he's a drama teacher? Aren't Natives and Blacks unduly persecuted? Yet, many more people from humble beginnings can rise to power both in India and N. America: like Modi. Like Pichai.

I may be biased since I am a first generation Indo Canadian, but IMO: For countries and economies to grow, they need a large and effective workforce. (1+ billion people ). Secondly, they need access to education for upward mobility. (Internet) Thirdly, they need leadership and hope. (Modi, despite his criticisms) India is well positioned in all three regards. Internet and connectivity has given opportunity to millions of young Indians to learn how to improve their quality of life. Imagine villagers now having the tools to earn spots in top educational institutions and help act as inspiration for the next generation. Skilled Indian diaspora are ambassadors and mentors for people in the homeland. For instance, I'm sure Sundar Pichai has inspired millions in terms of what can be achieved. Personally, I don't think the politics of a few will suffocate the struggle of many.

Shhh. Secret is getting out! Heading to high 13s now. Seriously though, i think that few economies will be growing as fast as India. BIAL Airport is situated ideally to capitalize on this growth. Projections are already for 40 million passengers in the coming year. A tremendous monetization potential. The COVID turbulence is behind us, definitely looking forward!