nwoodman

Are the US deflation hedges next? Cheers nwoodman

Opening remarks and Q&A attached cheers nwoodman Opening_Remarks_FFH_CC__4-11-16.mp3 QandA_FFH_CC__4-11-16_.mp3

That was the standout for me too! cheers nwoodman

With respect to all, can we please quit this line of reasoning. The IQ thesis debate, has been well argued by both sides, so let's leave it at that. My original post was simply drawing attention to Prem's view on the prospects for India. This will either work or it won't. I think a more interesting topic of discussion is whether PM Modi can make changes required for growth, that in turn, will achieve above average returns for Fairfax. Cheers nwoodman

http://economictimes.indiatimes.com/et-now/experts/very-bullish-on-fin-services-in-india-prem-watsa/videoshow/54689041.cms Cheers nwoodman

FWIW http://business.financialpost.com/investing/investing-pro/after-brexit-vote-cibcs-paul-holden-does-retake-on-fairfax-now-a-sector-performer-700-target Also looks they have picked up another asian insurer deal valued at $8M http://www.economynext.com/Sri_Lanka_s_Asian_Alliance_general_insurance_unit_goes_to_Fairfax-3-5353-17.html cheers nwoodman

I'm with you brother. I'm holding my nose more than I ever thought I would. I totally get the deflation bet and the hedging. It's pretty much why I bought this stock. Their stock picking, however, is too often atrocious, indefensible and bordering on amateurish... if not already there. I simply don't get their thinking or analysis. Bank of Ireland was a home run even if it was a Kennedy Wilson pick. Its off from its highs but they also managed to take some money off the table too

Fascinating, thanks for posting cheers nwoodman

I thought this was an interesting observation: " A funny thing happens to an index's valuation when you choose not to entirely ignore the companies that have negative earnings (i.e. losses). Ever wondered what the P/E ratio of the Russell 2000 was given that it is full of companies where the 'E' is negative? The answer is simple - and ugly - as The Wall Street Journal exposes, the aggregate P/E of the Russell 2000 is over 200x which perhaps explains the gaping chasm between bond and equity valuations for this highly credit-sensitive cohort." http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/02/28/20160228_rty2_0.jpg http://www.zerohedge.com/news/2016-02-28/three-charts-no-small-cap-asset-manager-wants-you-see cheers nwoodman

I share your frustration but that statement is a little extreme. Bank of Ireland has been a great and material investment. However, If they hadn't fixed the insurance companies I would have been long gone, but they seem to be running that part of the business very successfully now. I believe their over all positioning will be roughly right but their timing was very early. It sucked, has been priced in and the more interesting line of thinking is what happens going forwards Cheers Nwoodman

Very impressive sir, well done! A nice set of result all round cheers nwoodman

Confirmed http://www.berkshirehathaway.com/news/AUG1015.pdf Cheers nwoodman

http://news.yahoo.com/warren-buffetts-berkshire-hathaway-nearing-deal-buy-precision-163812149--finance.html Cheers Nwoodman

Not a bad article for ZH. Does a reasonable job of summing up the deflation thesis http://www.zerohedge.com/news/2015-08-03/largest-financial-departure-reality-human-history Cheers nwoodman

Cripes, that was quick http://www.reuters.com/article/2015/04/15/idUSL5N0XC0QH20150415 cheers nwoodman

Fair point. They seem to be growing into these acquisitions nicely, 1.4b for Zenith and now 1.9 for Brit ;D So much happier to see them picking up quality and market position. Seems like they are a learning organisation after all and near death experiences of years gone by have shaped them (touch wood). cheers nwoodman

What are the chances we look back in a few years and say it was a mute point how they financed it. I think they have just pulled another Zenith. This is a nice set of results! http://www.reuters.com/article/2015/02/25/brit-results-idUSL5N0VZ14620150225 Cheers nwoodman

http://www.fairfax.ca/news/press-releases/press-release-details/2015/Fairfax-to-Acquire-Brit-PLC/default.aspx The Brit Offer Price represents a premium of 11.2% to the closing price of 274.2 pence per Brit Share on February 16, 2015, being the last full business day prior to this announcement. The aggregate purchase price payable by Fairfax for the Offer is approximately US$1.88 billion. On February 12, 2015, Fairfax announced 2014 earnings of approximately US$1.6 billion. Excluding the final dividend expected to be declared by the board of directors of Brit for the year ended December 31, 2014 in an amount of 25 pence per Brit Share , Fairfax's purchase price of 280 pence per Brit Share is less than ten times the company's earnings based on the company's annualized net earnings for the six months ended June 30, 2014. The acquisition is accretive to Fairfax on several metrics including gross revenue per share and investments per share. Fairfax has built a strong relationship with the Brit team and an understanding of their business and operations since the acquisition of Brit's runoff business in June, 2012.

Short article on the pet insurance industry. Nice place for an insurer with a market cap of $10b to play in and hopefully way too small for that "other" company with a slightly larger market cap of $350b http://www.bloomberg.com/news/2014-11-13/dogs-loved-like-children-fuel-pet-insurance-sales.html "Makara is among so-called pet parents fueling a $600 million industry in North America that’s growing at triple the pace of U.S. accident-and-health coverage, drawing investment from companies including Toronto-based Fairfax Financial Holdings Ltd. (FFH) and Nationwide Mutual Insurance Co. Fairfax, run by value investor Prem Watsa, agreed this year to buy Pethealth Inc., North America’s second-largest pet insurer, for C$100 million ($88 million). The Oakville, Ontario-based firm provides pet pharmaceuticals, microchips for animal identification, and insurance that covers everything from behavioral therapy to a reward for the return of a runaway pet. “It’s a nascent industry and demographically it has legs, especially with the adoption of pets as family members,” Fairfax President Paul Rivett said in a telephone interview."

congratulations and keep up the great work Cheers nwoodman

A very tidy quarter. Well done to to all at FFH and so good to see the plan paying off At 1.1x's book with downside protection this is looking cheap again Cheers Nwoodman

Wonderful news. Congrats to all :) Cheers nwoodman

Thanks Gio, looks like regression to the mean might have started on the Russell 2000. I reckon we might get to see some traction on the short side of our favorite long/short "fund" FFH cheers nwoodman

Thanks for this, I really enjoyed it. I haven't had the privilege of hearing John Lace speak before but it has only reinforced my faith in HWIC, grey hairs and a deep understanding of margin of safety is exactly what I am looking for in my largest position. I think he also provides a little more color at the end about the hedges. It has probably been posted already but this is the doco on John Templeton that John Lace mentions http://www.bloomberg.com/video/contrarian-a-documentary-about-john-templeton-aD8U03jnSs2BFr4IuxF~IQ.html thanks again! nwoodman

Results are heading in the right direction http://www.independent.ie/business/bank-of-ireland-ceo-richie-boucher-taxpayer-support-for-the-bank-has-been-rewarded-and-repaid-as-losses-fall-30057063.html Cheers nwoodman