Fairfax 2008 Year-end Results Conference Call (February 20, 2008)

[KFRCanuk]

Posted this as an event in the calendar also.

 

http://www.fairfax.ca/Assets/Downloads/Press/fpr2009-01-23.pdf

 

Fairfax Financial Holdings Limited (TSX and NYSE: FFH) will hold a conference call at 8:30

a.m. Eastern Time on Friday, February 20, 2009 to discuss its 2008 year-end results which will

be announced after the close of markets on Thursday, February 19 and will be available at that

time on its website www.fairfax.ca. The call, consisting of a presentation by the company

followed by a question period, may be accessed at (800) 857-9835 (Canada and U.S.) or 1 (212)

287-1677 (International) with the passcode “Fairfax”.

 

A replay of the call will be available from shortly after the termination of the call until 5:00 p.m.

Eastern Time on Friday, March 7, 2009. The replay may be accessed at (800) 337-5620 (Canada

and U.S.) or 1 (203) 369-3253 (International).

 

[KFRCanuk]

Anyone catch the conference call?

[UhuruPeak]

Yes, see " Fairfax 2008 Year-end Results (February 19, 2008)" thread

[zarley]

Link to Q4 conference call transcript at seeking alpha:

 

http://seekingalpha.com/article/121766-fairfax-financial-holdings-q4-2008-earnings-call-transcript

 

 

[Smazz]

2nd paragraph of Prems opening statement should read "$1.5 Billion" as opposed to Million?

 

He doesnt usually come right out and make these statements:

 

"Consequently, our dividend and investment income is going to increase significantly in 2009 and future years."

Im taking this as mostly from the convertables.

 

But like I always say - if you can walk the walk.....

[oldye]

"V. Prem Watsa

 

Our muni bonds are in that seven or 10 year term. They're callable, not portable, but callable at 10 years, but the maturities of course can last longer than that. But they're callable between seven and 10 year, and we think it's likely they'll be called at that time."

 

Doesn't sound like they think inflation, or at least treasuries yields are going to be as high as everyone else does. 

 

Capitalism seems to work fine whenever there is a mechanism to absorb excess capacity, as demonstrated by the presentation Prem gave when he showed that interest rates remain trend lower  when there are no "curtains," low risk free rates of return on capital encourage investors to take risks etc. 

 

The problem is that the only time interest rates seem to trend up are when governments spend money preparing for war.  It doesn't have to be a hot war, a cold war does the trick. Countries the size of the United States really need large ongoing conflicts to eliminate excess capacity.  Think of the never ending war on drugs, the net effect of which creates tons of jobs, consumption while also creating a system where sick people are thrown "into the system" where in reality they're being kicked out of society(people are capital too I guess because this helps limit supply) and finally enriches the very people that we're supposed to be at war with. 

 

The government is spending war like money trying to decrease excess capacity which may or may not be enough.  I'll start worrying about inflation when it feels like they are looking for a fight.