ourkid8

CN Rail did EXTREMELY well... http://www.cn.ca/en/media-news-q2-financials-20100722.htm CN Rail: Second-quarter 2010 highlights: -Net income and diluted earnings per share (EPS) increased by 38 per cent from the year-earlier quarter to C$534 million and C$1.13, respectively. -Diluted EPS of C$1.13 increased by 49 per cent over adjusted diluted EPS of C$0.76 for the second quarter of 2009. (1) -Revenues rose 18 per cent to C$2,093 million, while carloadings increased 27 per cent and revenue ton-miles rose 15 per cent. -Operating income increased 39 per cent to C$813 million. -Operating ratio improved by 6.1 points to 61.2 per cent. -Six-month free cash flow totalled C$958 million, up from C$463 million generated during the comparable period of 2009. (1)

Based on these results, is anyone adding to their FFH position?

http://fairfax.ca/Assets/Downloads/Press/fpr2010-02-18.pdf "The merger consideration of $38.00 per share also represents a premium of 34.5% to Zenith’s book value as of December 31, 2009."

http://finance.yahoo.com/news/Fairfax-Financial-Holdings-iw-4006923657.html?x=0&.v=1 -book value increased to $369.80 per basic share at December 31, 2009 - The combined ratio of the company's insurance and reinsurance operations was 99.8% on a consolidated basis. Underwriting results of the company's insurance and reinsurance operations improved to an underwriting profit of $7.3 million from an underwriting loss of $280.9 million in 2008 primarily related to U.S. hurricane losses.

I am definitely not trying to start an argument at all and do not want to discuss the merits in my fairfax position... (It's my largest position in my portfolio) 1. I could not agree more, Fairfax is one of the most shareholder friendly companies around... 2. I defintiely would not want Prem to pay himself and other insiders on the same scale as GS... (That bonus structure makes me SICK) I also feel Fairfax is not paying Mr. Watsa a fair wage as he requires money from other sources. I will be the first to let the company know to bump up his salary as he definitely earns it and let's pay him a fair wage so that he does not need to supplement his income from Fairfax dividends! Thanks, S

I really do not like the fact that Fairfax is issuing equity in this situation considering they just recently paid a dividend which is equal to the amount of the equity issue... Dividends are paid when the company cannot find better use of the capital YET in the last 2 years there have been numerous opportunities to use that capital much more efficiently... I understand the dividend fuels Mr. Watsa's lifestyle but that is rediciolous.

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=7058135-1187-23228&type=sect&TabIndex=2&companyid=54239&ppu=%252fdefault.aspx%253fcik%253d1067983 I am surprised no one posted Berkshire's 13F as of yet... I am honestly shocked Mr Buffett sold such a large amount of JNJ!!! Is he trying to build his cash for a ratings upgrade? WFC - add 2.15% PG - reduced 9.15% WMT - add 3.17% COP - reduce 34.34% JNJ - reduce 26.5% MCO - reduce 18.88% RSG - add 128.7% Thanks, S

http://finance.yahoo.com/news/Berkshire-voted-no-on-Kraft-rb-3283294918.html?x=0&.v=1 "Berkshire said it does not believe any Kraft shareholder should vote "yes" to the proposal without knowing what they are voting for. However, it said that it would change its own vote from "no" to "yes" if, after seeing the final offer Kraft is expected to present later this month, it concludes that the offer does not destroy value for Kraft shareholders." I am including this in the Fairfax board because Fairfax has a large holding in Kraft... Thanks, S

http://finance.yahoo.com/news/Berkshire-voted-no-on-Kraft-rb-3283294918.html?x=0&.v=1 "Berkshire said it does not believe any Kraft shareholder should vote "yes" to the proposal without knowing what they are voting for. However, it said that it would change its own vote from "no" to "yes" if, after seeing the final offer Kraft is expected to present later this month, it concludes that the offer does not destroy value for Kraft shareholders." Thanks, S

I totally agree!!!

The SEC had these rules about how many shares you could purchase per day, based on percentage of average trading volume. They don't have to worry about the SEC's rules any longer. What do the TSX rules look like? http://www.fairfax.ca/Assets/Downloads/Press/fpr2009-09-22.pdf "The average daily trading volume of the subordinate voting shares of Fairfax on the TSX for the six months ended August 31, 2009, calculated in accordance with the rules of the TSX for the purposes of the bid, is 40,806 shares. In accordance with the rules of the TSX, 25% of that average daily trading volume (10,202) represents Fairfax’s daily limit (excluding permitted block purchases) for purchases under the bid made through the facilities of the TSX. This bid will commence September 24, 2009 and may extend until September 23, 2010."

Would you please let me know as well how you got a loan at that rate? I am definitely interested! :)

Hi, I am looking to consolidate all my accounts with TD Waterhouse DB and I have the following questions: -My 2 mutual funds - Chou associates and Chou Asia have distributions on December 31st, if I transfer my assets now, what would happen to my distribution? (I am reinvesting all my dividends) Will that automatically transfer over or I should wait till the new year? -Is there anything I need to look out for as I want all my securities transferred and nothing sold. The option the branch rep picked was "All assets* but mixed In-Cash and In-Kind" (There are equities, mutual funds and cash in the account) -Anyone have any reviews on this transferring of assets? Is it very seamless? Have you heard of any problems? The reason for the transfer is because I am sick of paying a yearly RRSP fee with my current brokerage and another bonus is that TD Waterhouse has $9.99 trades for accounts over $100k. I do not trade a lot but why pay an RRSP fee and more for trading? Let me know... Thanks, S

http://www.gurufocus.com/forum/read.php?1,75929 Enjoy!

Deals such as this are the reasons why I have 17.82% of my portfolio is in Fairfax Financial! My only regret was not buying more!!!!! :)

Never say "always" as Mr. Watsa can surprise us... Our ownership in Ridley Inc is 70.16%. Guess who is the Chairman - Bradley P. Martin... Fairfax controls the company and also added the chairman and it is only a matter of time that they possibly bring this company into the Fairfax family... The initial purchase was 69%, then Mr. Watsa upped his stake to 70.16% and now with the share repurchase program it would be slightly more... Does anyone have a position in Ridley? It is selling for below book and being a partner with Mr. Watsa is almost a safe bet! Thanks, Shahed

Sorry, thanks for that correction... That was Berkshire's stake in USB.... Thanks, S

Let's not forget as of Q2 2009 Fairfax holds 69,039,426 shares of USB. USB has been making numerous FDIC assisted deals along with picking up the pieces of companies in dire need of cash!!! Just yesterday, USB acquired FBOP for next to nothing and is one of the strongest financial institution in the United States. "This acquisition is expected to meet or exceed the company’s internal financial hurdles for internal rate of return and earnings per share accretion." - This is music to my ears!!! :) :) :) Thanks, S

Please see my asset allocation as of September 19, 2009. Yes, I do hold mutual funds but that is because I really respect and trust Francis Chou's judgement. I am still in debating if I should keep Mackenzie Cundill Recovery 'C'. Can anyone give me any insight? What is your opinion on my asset allocation? FFH.to 17.82% PM 12.61% JNJ 9.85% CNR.to 9.76% Mackenzie Cundill Recovery 'c' 9.40% Chou Associates 8.25% Chou Asia 7.36% TD.to 7.17% KFT 6.94% COP 6.00% USB 4.50% Cash 0.33% (This amount has grown as of September 19, 2009) Thanks, S

Hi guys, I currently have quite a bit of US equities in my non registered account with TD Waterhouse. It seems I am getting double taxed on the dividend payments I receive. A few questions I have: How do you avoid and/or minimize the withholding tax? How do you avoid and/or minimize the dividend amount added to my income as it will be taxed at my income tax rate In the next couple of years my dividend income will push me into the next tax bracket so what are other suggestions other people have? Let me know... Thanks, S

Hi , I got a couple of questions, does anyone know how much of Mr. Watsa net worth is in Fairfax financial? My next question is how much is everyone's net work in Fairfax? I have 17.82% in Fairfax and 15.61% with Francis Chou split between Chou associates and Chou Asia. Thanks, S