Fairfax stock positions

[UK]

Is carrying value still on the book will also be updated because of this?

[Junior R]

1 minute ago, UK said:

Is carrying value still on the book will also be updated because of this?

will be market up significantly 

[nwoodman]

1 hour ago, Hoodlum said:

Fairfax has sold just over half it's shares (23.2% of outstanding) in Poseidon for $1.9B.   Fairfax still own 22.1% of outstanding shares.

 

https://www.fairfax.ca/press-releases/fairfax-agrees-to-sell-a-portion-of-its-interest-in-poseidon-corp-2026-03-10/

 

 

 

The no sacred cows, is worth a lot IMHO

[gfp]

So Fairfax took this private exactly three years ago at $15.50 per share and is selling some at $28.30.  22% annualized plus all those distributions received over the last 3 years.  (not considering the investment results before the take-private in this)

[Jaygo]

7 minutes ago, nwoodman said:

The no sacred cows, is worth a lot IMHO

I totally agree. It doesn't seem to be activity for activity sake either. My guess is this money will go to a very good use and 5 years out we will be discussing another partial sale with a great return. 

 

I like that they tend to keep a portion of the companies and simply right size them when the opportunity knocks. 

[SafetyinNumbers]

9 minutes ago, UK said:

Is carrying value still on the book will also be updated because of this?

No, the carrying value of the remaining stake should remain the same. The market value should be updated from $20 to $28.30 but we already knew that was too low. 

[adventurer]

Even some European big brains got these Fairfax news and bought a few shares during the european session. Interesting, considering that the stock is most of the time flat during the european session. 

[Hoodlum]

1 hour ago, nwoodman said:

The no sacred cows, is worth a lot IMHO

I have to keep reminding myself of this.  I didn’t think Fairfax would sell Poseidon or at least not in the next couple of years.  
 

I wonder how they feel about Eurobank.  I was not expecting them to sell this either in the next couple of years but anything is possible. 
 

The only sacred cows seem to be the P&C Insurance subs. 
 

Edited March 10 by Hoodlum

[Crip1]

3 minutes ago, Hoodlum said:

I have to keep reminding myself of this.  I didn’t think Fairfax would sell Poseidon or at least not in the next couple of years.  
 

I wonder how they feel about Eurobank.  I was not expecting them to sell this either in the next couple of years but anything is possible. 
 

The only sacred cows seem to be the P&C Insurance subs. 
 

Selling half is interesting to me, tells me a few things:
1) They got a fair value, or better, offer for the half that they sold, or...

2) They found a better ROI opportunity, AND...

3) They still feel that the company as an ongoing concern is sufficiently compelling that they want to keep a sizable ownership stake.

 

-Crip

[Parsad]

23 minutes ago, Hoodlum said:

I have to keep reminding myself of this.  I didn’t think Fairfax would sell Poseidon or at least not in the next couple of years.  
 

I wonder how they feel about Eurobank.  I was not expecting them to sell this either in the next couple of years but anything is possible. 
 

The only sacred cows seem to be the P&C Insurance subs. 
 

 

17 minutes ago, Crip1 said:

Selling half is interesting to me, tells me a few things:
1) They got a fair value, or better, offer for the half that they sold, or...

2) They found a better ROI opportunity, AND...

3) They still feel that the company as an ongoing concern is sufficiently compelling that they want to keep a sizable ownership stake.

 

-Crip

 

Historically, we know that Fairfax is more opportunistic than say Berkshire or Markel.  If they get offered a high premium, they will consider selling a portion or all of a business to buy something cheaper.  Then they may return later and buy back what they sold at a cheaper valuation. 

 

They've always been more pure "Ben Graham" investors, rather than "Phil Fisher".  And they've generally done a lot better behaving that way, rather than being a Berkshire "buy and hold" type of company...think Blackberry and some of the other wholly-owned non-insurance businesses...not generally top-tier like Berkshire...more cigar-butts and turnarounds! 

 

So frankly, their philosophy works for them, and I would rather they do what they are great at, then be mediocre at what they aren't innately attuned to.  Cheers!

[longlake95]

great news, especially if you want to buy an Indian bank and need some capital.

[djokovic1]

Time for analysts to update their Q2 numbers and FY2026 EPS. $250 not out of the question (ex out of the ordinary Cat).

 

Could someone enlighten me on the tax implications of such a sale?

[KFRCanuk]

1 hour ago, Parsad said:

If they get offered a high premium, they will consider selling a portion or all of a business to buy something cheaper.  Then they may return later and buy back what they sold at a cheaper valuation. 

That made me lol as they do go back.

[yesman182]

2 hours ago, longlake95 said:

great news, especially if you want to buy an Indian bank and need some capital.

I have seen this type of comment a lot on here. Why do we think Indian banking will be a good investment? I know nothing about Indian banking, so I have no opinion one way or the other. Is it like Canada where the few banks basically have a monopoly?  Or is everyone convinced it will work out well because they have the largest population and like half the people still don't have a bank account? I understand the Eurobank has workout out well, but why is everyone so confident that this will be a great investment? It seems like the general sentiment is that everyone is excited if they win the bid for the bank, but I haven't seen anyone say why the investment will work out well. I am not saying it won't, I simply want to know the consensus is that it would be a good investment. 

[Parsad]

9 minutes ago, yesman182 said:

I have seen this type of comment a lot on here. Why do we think Indian banking will be a good investment? I know nothing about Indian banking, so I have no opinion one way or the other. Is it like Canada where the few banks basically have a monopoly?  Or is everyone convinced it will work out well because they have the largest population and like half the people still don't have a bank account? I understand the Eurobank has workout out well, but why is everyone so confident that this will be a great investment? It seems like the general sentiment is that everyone is excited if they win the bid for the bank, but I haven't seen anyone say why the investment will work out well. I am not saying it won't, I simply want to know the consensus is that it would be a good investment. 

 

Banks, as long as they stick to banking, have produced fantastic results in virtually all emerging, developing and developed markets.  Indian banking is mostly state-controlled/managed and barriers to entry are high...that makes a good banking moat, especially when like you said, half the country is still learning about bank accounts, managing wealth and borrowing. 

 

The bet on banking is a bet on India...that it continues in the direction it is headed to become the 3rd largest economy in the world by GDP and the largest country in the world by population...including an increasing number of programmers, engineers and entrepreneurs.  

 

There is no certainty, but recent past history looks good, the trends look good, the direction of government looks good in terms of deregulation, and it is promising.  Personally, I don't own any FIH...my bet is directly through FFH's ownership in FIH/India.  That reduces my exposure to any risk there, while still benefiting if the bet is accurate!  Cheers!

[yesman182]

7 minutes ago, Parsad said:

Banks, as long as they stick to banking, have produced fantastic results in virtually all emerging, developing and developed markets.

What is your assessment of First Republic Bank? Did they stick to banking? It seems odd to me that the general sentiment is excitement for the hiring of Mrs. Erkan. She was on the board of directors and co-CEO shortly before the collapse of the 2nd largest bank in the US History. I had never heard of the lady till last weekend and maybe she left because she didn't like the asset/liability mismatch First Republic was doing, and if that is the case, what an amazing hire. I hope they aren't being fooled by a pretty face and impressive resume. 

[Parsad]

2 hours ago, yesman182 said:

What is your assessment of First Republic Bank? Did they stick to banking? It seems odd to me that the general sentiment is excitement for the hiring of Mrs. Erkan. She was on the board of directors and co-CEO shortly before the collapse of the 2nd largest bank in the US History. I had never heard of the lady till last weekend and maybe she left because she didn't like the asset/liability mismatch First Republic was doing, and if that is the case, what an amazing hire. I hope they aren't being fooled by a pretty face and impressive resume. 

 

You can't have huge correlated assets in banking that are susceptible to collapse...that's not traditional banking.  I wasn't speaking about Mrs. Erkan...I was speaking about banking in general.  It's a necessary business that when run properly produces excellent long-term results on equity.  Historically, Prem hasn't been fooled by pretty faces...he's been pretty good on assessing leadership if you look at his batting average.  Cheers!

[Duke In Shadows]

2 hours ago, yesman182 said:

What is your assessment of First Republic Bank? Did they stick to banking? It seems odd to me that the general sentiment is excitement for the hiring of Mrs. Erkan. She was on the board of directors and co-CEO shortly before the collapse of the 2nd largest bank in the US History. I had never heard of the lady till last weekend and maybe she left because she didn't like the asset/liability mismatch First Republic was doing, and if that is the case, what an amazing hire. I hope they aren't being fooled by a pretty face and impressive resume. 

Erkan has had a controversial recent history in the same way David Sokol did before his Fairfax tenure. Prem is willing to back talented, top notch people who have had a setback or two.

 

Though I will say she left 1.5 yrs before the eventual collapse before the rapid rate hikes and asset-liability mismatch that sunk the bank. she may have also left because she saw things she didn't like. either way its all speculation. 

 

The point is she's clearly won Prem over and his judgement of character is as high as anyone's. 

Edited March 10 by Duke In Shadows

[petec]

6 hours ago, nwoodman said:

The no sacred cows, is worth a lot IMHO

 

+1

 

This is the key takeaway.

[Viking]

Shareholders got out of bed this morning to discover that they had been given a $1.1B gift. Fairfax sold ~50% of their position in Poseidon/Seaspan.

• In Q2 $FFH.TO will book ~$866M gain.
• Excess of FV over CV will increase to ~$824M (from ~$600M at Dec 31).

Outstanding! Who says: "you can't have your cake and eat it (too)"?

 

There are so many important take-aways from this transaction...

 

What is the key take-away from this transaction for Fairfax shareholders? What says the mob at CofBF?

 

The best part? The reaction from Mr. Market - the news was largely ignored (the stock - already dirt cheap - finished up on the day ~1%). It kind of reminds me of when Fairfax sold their pet insurance business in 2022 for a $1.2B gain - and the stock promptly sold off). So I guess we should be thankful?

 

Edited March 10 by Viking

[Txvestor]

11 hours ago, Parsad said:

 

Banks, as long as they stick to banking, have produced fantastic results in virtually all emerging, developing and developed markets.  Indian banking is mostly state-controlled/managed and barriers to entry are high...that makes a good banking moat, especially when like you said, half the country is still learning about bank accounts, managing wealth and borrowing. 

 

The bet on banking is a bet on India...that it continues in the direction it is headed to become the 3rd largest economy in the world by GDP and the largest country in the world by population...including an increasing number of programmers, engineers and entrepreneurs.  

 

There is no certainty, but recent past history looks good, the trends look good, the direction of government looks good in terms of deregulation, and it is promising.  Personally, I don't own any FIH...my bet is directly through FFH's ownership in FIH/India.  That reduces my exposure to any risk there, while still benefiting if the bet is accurate!  Cheers!

If the economy particularly a consumer driven one grows at 8% then a banking investment should turn out well. 
it's not just EuroBank, Fairfax did quite well investing in Bank of Ireland a few years earlier as well. They also own a significant stake in CSB which is a lot smaller, so they're not completely unfamiliar with Indian banking. 
They also founded ICICI Lombard in the early days post liberalization even before the Modi gov't came into office. 

They're also involving themselves into financial services via Fairfax India. They own a significant state in IIFL Wealth management as well as Finance gold loans, etc.

Also, my understanding is that IDBI is one of the few banks with a banking license for the whole country. Many other banks only have regional licenses including CSB.
This therefore gives them a great platform for digital banking services as well. An area where through godigit they have special expertise. 
Finally, I think the PE is around 10 times next year's earnings. A very reasonable multiple in a growth market.
Finally, the bank has been through a cleanup process and its balance sheet is pretty good. It's percentage of non-performing loans is very low. 

 

[UK]

13 hours ago, yesman182 said:

I have seen this type of comment a lot on here. Why do we think Indian banking will be a good investment? I know nothing about Indian banking, so I have no opinion one way or the other. Is it like Canada where the few banks basically have a monopoly?  Or is everyone convinced it will work out well because they have the largest population and like half the people still don't have a bank account? I understand the Eurobank has workout out well, but why is everyone so confident that this will be a great investment? It seems like the general sentiment is that everyone is excited if they win the bid for the bank, but I haven't seen anyone say why the investment will work out well. I am not saying it won't, I simply want to know the consensus is that it would be a good investment. 

 

[SafetyinNumbers]

Strathcona shareholder letter is out. I think it’s really thoughtful and educational if anyone is interested in oil stocks. Greenfire is expected to report tomorrow. Both stocks are very cheap and meaningful positions for Fairfax. Overtime the Adam Waterous lore will grow and the stocks will trade at big premiums vs peers as opposed to the current big discounts.
 

https://www.strathconaresources.com/wp-content/uploads/2026/03/2025-Shareholder-Letter_vFINAL.pdf

[glider3834]

4 hours ago, SafetyinNumbers said:

Strathcona shareholder letter is out. I think it’s really thoughtful and educational if anyone is interested in oil stocks. Greenfire is expected to report tomorrow. Both stocks are very cheap and meaningful positions for Fairfax. Overtime the Adam Waterous lore will grow and the stocks will trade at big premiums vs peers as opposed to the current big discounts.
 

https://www.strathconaresources.com/wp-content/uploads/2026/03/2025-Shareholder-Letter_vFINAL.pdf

thanks for posting - agree this is a must read   

[nwoodman]

5 hours ago, SafetyinNumbers said:

Strathcona shareholder letter is out. I think it’s really thoughtful and educational if anyone is interested in oil stocks. Greenfire is expected to report tomorrow. Both stocks are very cheap and meaningful positions for Fairfax. Overtime the Adam Waterous lore will grow and the stocks will trade at big premiums vs peers as opposed to the current big discounts.
 

https://www.strathconaresources.com/wp-content/uploads/2026/03/2025-Shareholder-Letter_vFINAL.pdf

Cheers, when one of the greats declares this, you have to take notice:

 

“With the valuations of our peers implying an approximately $50 Strathcona share price, we are reminded of legendary oilman T. Boone Pickens’ line that sometimes it is “cheaper to drill for oil on the floor of the New York Stock Exchange than in the ground.” Setting aside relative valuation and focusing on absolute value, buying more of a business we

know and understand well (our own) at a large discount to a reserves value predicated on WTI prices in the mid US$60s appears attractive to us.

 

While in the past we have been unable to take advantage of the relative discount we have traded at due to our small float and low average daily trading volumes – which both limited the size of the opportunity and made a buyback self- defeating – this has improved in recent months, with Strathcona’s daily trading volumes recently averaging more than $30 million per day (up from a meager $1 to $2 million per day when we first went public). With volumes up, our shackles are now off and we have a new tool in our capital allocation tool kit.

 

We intend to initiate our first normal course issuer bid (NCIB) in coming weeks, for up to 5% of shares outstanding. In allocating capital to the NCIB, our intent is to do so sporadically and opportunistically, rather than following a formula as a percent of free cash flow like has become popular (the best time to buy our shares will be when we have no free cash flow…). In all cases, we will seek to make repurchases when we view our stock as discounted to our intrinsic value, conservatively determined and then applying a margin of safety.”

 

Wonderful news for SCR  and FFH shareholders.  The returns here if SCR can retire 5% per year at current prices or lower will bump this up FFH’s investment already impressive IRR league table.  I hope Adam can make it to Toronto next month.