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Madpawn

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    Fairfax 2023

    in Fairfax Financial

    Posted

    On 7/10/2023 at 2:40 PM, Viking said:


    @newtovalue i have not done a Q2 estimate yet. I will put something together before they report. The problem i am having is understanding the impact of much higher interest rates and IRFS 17. Any insight other posters have on interest rate changes and impact on IFRS 17 would be appreciated 🙂 
     

     

    I remember seeing you post in recent days that your portfolio is about 35% Fairfax. May I ask if that includes FIH? 🙂 I'm surprised FIH is not getting nearly as much attention as FFH does.

    What are you doing? - (Hobbies Thread)

    in General Discussion

    Posted

    1 hour ago, ourkid8 said:

    I recently set-up my uncle's blog using Substack and it was easy and straight forward to set-up.  There is no censoring of information which is important and you OWN your content, IP and mailing list   


    oh I think that’s good! I’ll definitely check it out, thank you!

    What are you doing? - (Hobbies Thread)

    in General Discussion

    Posted

    I’m thinking of starting a financial blog! I started investing at age 18 and (5 ish yrs ago) and have been doing decent I think. I noticed how a lot of my friends lack knowledge when it comes to general finances and investing. 

    If anyone has platform suggestions, let me know! (Currently thinking wix,Weebky or Wordpress

    Fairfax 2022

    in Fairfax Financial

    Posted

    1 hour ago, Viking said:


    One strategy is responsible for Fairfax’s underperformance from 2011-2020: shorting strategy. That aspect of their investing strategy has changed: they will no longer short stocks or indices.

     

    In terms of stock picking, Fairfax has a pretty good track record over their 35 years (this is my guess… i have not run the numbers). Atlas was their most recent massive purchase and it is looking very good. Another recent medium sized purchase, Stelco, is also looking very good. Another recent smaller purchase, Dexterra, is also looking very good. 
     

    Fairfax also employs some non-traditional strategies that i group in the equity bucket: their recent purchase of FFH TRS giving them exposure to 1.96 million Fairfax shares looks like a solid move to me.

     

    Bottom line, Fairfax is not Berkshire and never will be. It is Fairfax. With the shorting strategy in the rear view mirror my guess is reported results and BV growth at Fairfax will be much better the next 5 years than it was the 10 years from 2011-2020. 


    Yes I agree with the leaving shorting behind strategy. I guess I’ve always hoped Fairfax to get into OpCos because they do have a similar set of values to Berkshire. Prem has frequently brought up how Fairfax is a long term partner to the companies it invests in. That’s why I thought it might aswell buyout some companies and go on a similar path as Berkshire. I simply hope Fairfax doesn’t use the funds from its insurance business to do trading rather than investing.
     

    Fairfax 2022

    in Fairfax Financial

    Posted

    9 hours ago, Viking said:


    @Madpawn welcome to the dark side 🙂 

     

    While Fairfax, Berkshire and Markel are all insurance companies that invest heavily in equities, all 3 do so in a very different way. Why the differences? Different business models. Berkshire is looking to own its positions forever. Fairfax, on the other hand, is looking to buy low and sell high. Fairfax also likes for businesses it controls to also trade on the stock market to allow for better price discovery (for Fairfax shareholders to better understand the actual market value of its various equity holdings).


    Do we know why this model hasn’t changed? Given how Fairfax hasn’t been that successful with stock picks, why not own a few OpCos?

    Fairfax 2022

    in Fairfax Financial

    Posted

    Hey everyone, I've been following this Forum since I started investing 5 yrs ago and finally pulled the trigger on buying a membership (I think it used to be free but became pay to comment?) ~

     

    So a bit of a beginner question from me: Why does Fairfax not acquire businesses like Berkshire does, nor does it mention having any plans / ambitions to do so? It has acquired meaningful positions in many companies but correct me if I'm wrong - it has not really "absorbed" other companies, why is that?

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