Price drop.

[One World Trader]

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

[petec]

More sellers than buyers.

[ourkid8]

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

[John Hjorth]

One World Trader,

 

Ben Comston's Seeking Alpha article of August 9^th 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.

[Sullivcd]

India has been struggling

[petec]

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).

[Parsad]

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!

[Spekulatius]

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.

[TwoCitiesCapital]

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.

[John Hjorth]

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.

[petec]

To me, Fairfax hasen't looked better than it does now for years.

 

Me too.

[Crip1]

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

[One World Trader]

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.

[clutch]

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...

[petec]

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?

[John Hjorth]

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.