One World Trader Posted October 19, 2018 Share Posted October 19, 2018 Why is the price dropping so much ? I am not a dissolusioned fan I’m someone looking for a real solutions to explain lack of growth for five years. thank you Link to comment Share on other sites More sharing options...
petec Posted October 19, 2018 Share Posted October 19, 2018 More sellers than buyers. Link to comment Share on other sites More sharing options...
ourkid8 Posted October 19, 2018 Share Posted October 19, 2018 I do not want to sound like an ass but If you read the annual reports, you will have an understanding of the lack of growth in the past 5-7 years. Heck, if you follow the threads in the fairfax group it is also clearly mentioned. Please Spend a couple of hours to go through them and you will have a better understanding of the past and future opportunities. Why is the price dropping so much ? I am not a dissolusioned fan I’m someone looking for a real solutions to explain lack of growth for five years. thank you Link to comment Share on other sites More sharing options...
John Hjorth Posted October 19, 2018 Share Posted October 19, 2018 One World Trader, Ben Comston's Seeking Alpha article of August 9th 2018 is a good place to start, as it describes FFH and its prospects quite well in my opinion. You'll find the article mentioned in the "Fairfax 2018" topic. Link to comment Share on other sites More sharing options...
Sullivcd Posted October 20, 2018 Share Posted October 20, 2018 India has been struggling Link to comment Share on other sites More sharing options...
petec Posted October 20, 2018 Share Posted October 20, 2018 I do not want to sound like an ass but If you read the annual reports, you will have an understanding of the lack of growth in the past 5-7 years. Heck, if you follow the threads in the fairfax group it is also clearly mentioned. Please Spend a couple of hours to go through them and you will have a better understanding of the past and future opportunities. Does that explain the recent price drop (which is what I assume the OP was referring to?). It’s odd. Several holdings have done poorly recently (India, Blackberry, Eurobank) but the earnings power is rising steadily (2y yield) and risk off periods are very good for Fairfax (optionalitynof cash rises). Link to comment Share on other sites More sharing options...
Parsad Posted October 20, 2018 Share Posted October 20, 2018 Few things: Catastrophe losses may be higher than expected...volatility in market prices...drop in developing markets and currencies like India. If so, what are the outcomes: Short term losses in catastrophe, but higher premium prices for the market and FFH...the stock market always recovers...they can buy more Indian businesses at cheaper prices. Short-term the market is a voting machine...thus the volatility and market price drop. In the long-term it's a weighing machine...if you are holding it for the long-term, go occupy yourself with something else like a nice glass of wine and dinner, a weekend excursion, a baseball game or do some chores around the house. ;D Cheers! Link to comment Share on other sites More sharing options...
Spekulatius Posted October 22, 2018 Share Posted October 22, 2018 Few things: Catastrophe losses may be higher than expected...volatility in market prices...drop in developing markets and currencies like India. If so, what are the outcomes: Short term losses in catastrophe, but higher premium prices for the market and FFH...the stock market always recovers...they can buy more Indian businesses at cheaper prices. Short-term the market is a voting machine...thus the volatility and market price drop. In the long-term it's a weighing machine...if you are holding it for the long-term, go occupy yourself with something else like a nice glass of wine and dinner, a weekend excursion, a baseball game or do some chores around the house. ;D Cheers! Most reinsurers are down due to concerns about catastrophe losses. FFH has equity exposure on top of that. That said, I added a few shares at $483 today. Link to comment Share on other sites More sharing options...
TwoCitiesCapital Posted October 23, 2018 Share Posted October 23, 2018 I too am looking to add here. Unfortunately, most things in my portfolio are in a similar spot. I'll either need to get a good bid on some of my more illiquid holdings OR need something to pop so I can take profits and roll them back into Fairfax. Anything sub-$500 USD seems like a great deal given the increasing earnings power with every rate hike. Link to comment Share on other sites More sharing options...
John Hjorth Posted October 23, 2018 Share Posted October 23, 2018 What does the market price of Fairfax really matter to you, if you're a real long term owner of a part of the business? - To me, Fairfax hasen't looked better than it does now for years. Link to comment Share on other sites More sharing options...
petec Posted October 23, 2018 Share Posted October 23, 2018 To me, Fairfax hasen't looked better than it does now for years. Me too. Link to comment Share on other sites More sharing options...
Crip1 Posted October 23, 2018 Share Posted October 23, 2018 To me, Fairfax hasen't looked better than it does now for years. Me too. Whenever a question like this is asked, or at least whenever I've asked that question, it's been more of "Everything looks good to me but the price is dropping...am I missing something?" -Crip Link to comment Share on other sites More sharing options...
One World Trader Posted October 26, 2018 Author Share Posted October 26, 2018 Thanks for the points I’ll look into it The stock has done 11 percent in 5 years point to point. In that same time I have created and grown my own quite profitable small business from the ground up point to point. I don’t get it. I sure grew my book value at least 15% per year . And it shows. Five years to me is a long time. Link to comment Share on other sites More sharing options...
clutch Posted October 26, 2018 Share Posted October 26, 2018 Thanks for the points I’ll look into it The stock has done 11 percent in 5 years point to point. In that same time I have created and grown my own quite profitable small business from the ground up point to point. I don’t get it. I sure grew my book value at least 15% per year . And it shows. Five years to me is a long time. You are comparing FFH's stock price to your business's book value... Link to comment Share on other sites More sharing options...
petec Posted October 26, 2018 Share Posted October 26, 2018 Thanks for the points I’ll look into it The stock has done 11 percent in 5 years point to point. In that same time I have created and grown my own quite profitable small business from the ground up point to point. I don’t get it. I sure grew my book value at least 15% per year . And it shows. Five years to me is a long time. Presumably you didn’t lose billions by shorting equities in one of history’s great bull markets. It’s pretty clear what drove Fairfax for the last 5 years. Question is, what about the next 5? Link to comment Share on other sites More sharing options...
John Hjorth Posted October 26, 2018 Share Posted October 26, 2018 Let's make it 10, 15 or even 20 years, ref. Pete. One has to make a personal judgement, as always - forward looking is the real point here, I think. Link to comment Share on other sites More sharing options...
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