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FairFax Shareholders


ValueMaven
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Dear All: How do you view your investment in FairFax?  As a significant stake of your portfolio, which you will likely never sell (direct owner mentality) ? A position, which given Mr. Market’s mood, you might trade around (sell above 2x BV, or buy below 0.75x BV for example).  Just trying to gauge sentiment here?  Even buying Berkshire when Buffett was 66 years young (Mr. Watsa’s birthday just past this last August) turned out to be a huge risk-adjusted homerun for investors

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Like anything, I will trade around it based on it's value. That being said, I will probably always maintain some non-token position in the name given my trust in the people running it and their ability to generate returns.

 

As we all know, business performance <> stock performance and at some point I have to arbitrage the difference if it gets large enough as my primary motive is to make money which trumps my secondary motive of owning sizable stakes in companies I admire.

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"Lethargy, bordering on sloth should remain the cornerstone of an investment style."

 

 

Made sense to lead off my response with that Buffetism. FFH tends to be 15-20% of my portfolio, depending on market fluctuation. Intellectually, if it got to 2X BV I'd be looking to lighten up the position a bit but if it does get there, I am not 100% sure I would as the news would need to be really good for it to get there and I would be tempted to believe the hype. Similarly, using your example, of .75 BV, I would likely add more if I had something else over-valued or some dry powder.

 

 

The theory is simple...I think that FFH can earn money from their ops and invest the float better than I can invest my relatively small nest egg (Same for MKL, and BRK which, combined, constitute over 50% of my portfolio.

 

 

-Crip

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