naboo

Currently, good underwriting company worth 1.3 to 1.5 times book. but Fairfax is not an underwriting company, don't forget we didn't have CAT last year. the investment result is still questionable, need to get more information from tomorrow's conference call.

I am a tech guy, but I have to admit I really can't understand technology companies, they are beyond my knowledge base. My estimation for RIMM was zero, and I was ready to treat RIMM as 0 in FFH's portfolio, all of a sudden , it worth $800M.

And you won't be too happy to see these numbers: Combined ratios of the insurance and reinsurance operations in the fourth quarters and years ended December 31, 2011 and 2010 were: Year ended Fourth quarter December 31, ------------------- ------------------- 2011 2010 2011 2010 --------- --------- --------- --------- Insurance - Canada (Northbridge) 101.9% 111.2% 102.8% 106.9% - U.S. (Crum & Forster and Zenith National) 124.2% 130.1% 114.3% 116.5% - Asia (Fairfax Asia) 89.2% 90.8% 83.2% 89.3% Reinsurance - OdysseyRe 122.7% 85.8% 116.7% 95.0% Reinsurance and Insurance - Other 155.1% 90.1% 140.9% 107.2% --------- --------- --------- --------- Insurance and reinsurance operations 121.0% 102.9% 114.2% 103.5%

Definitely not good Net investment gains of $691.2 million (net investment losses of $914.9 million in the fourth quarter)

I have been reading and thinking RIMM for the whole weekend. The answer to myself is I have to treat FFH's entire investment in RIMM as a loss. So 450M loss will be around $22/share. I think I can take it. I also wonder whether FFH would get a better relationship with Canadian government by saving a Canadian icon and thousands of jobs.

I really want to ask Mr. Watsa during next conference call why he wanted to bet on RIMM. To me, this is a very tough market. There is no other companies better than RIMM? I think this is a gamble.

Hurricane could boost insurance pricing http://www.reuters.com/article/2011/08/23/uk-hurricane-insurance-idUSLNE77M04420110823

I just noticed today. It seems FFH has sold all SD shares. http://finance.yahoo.com/q/it?s=SD+Insider+Transactions

Combine Ratio 100.6% including all CAT is not a bad result. By the way, i didn't see the ICO transaction was mentioned in 2Q report.

This is my second post. my first post was: "95% of my entire asset in FFH, 5% in cash." Now I have about 40% in FFH, sold a lot around $260 last year. Bad move! I have been asking myself couple of questions "Do I have better investment skills than Watsa"? Answer is "Not even close." "do I fully trust him?" Answer is "Absolutely !". FFH percentage in my portfolio may never reach 95% again, but 60-70% is possible.

95% of my entire asset in FFH, 5% in cash.