Prem Watsa's Ownership in Fairfax

[kyleholmes]

Watsa's Ownership in Fairfax

 

I have seen numerous different estimates of Prem's net worth and ownership in Fairfax and wanted to see if anyone else had an different estimate than mine. The confusing thing for most I believe is just how much of The Sixty Two Company does he own. When shares are beneficially listed it can provide amounts that are misleading as we all know.

 

Not that it really matters much as Prem has more than enough money on the line in any of the various different estimates and has went above the call of duty for shareholders throughtout his whole tenure.

 

Just out of interests sake I tried coming up with a number. Here is my estimate.

 

On page 849 of "Fairfax Discovery" it gives an organizational chart as of September 30, 2001 of Prem's ownership directly and indirectly in Fairfax.

 

It lists that he has:

 

129,735 shares through number company 810679

12,589 shares held personally

and a 50.01% ownership in The Sixty Two Investment Company Limited which would result in another (1,598,620 * 50.01%) 799,470 shares

 

which equals a total of 941,794 shares

 

This being said though, these numbers are of September 30, 2001... which as we know from his annual reports he has added more shares since then. Looking at Sedi it looks like he has added an additional 119,246 shares directly and through his kids account.

 

All added up it looks like, plus or minus some, that he has an ownership stake of 1,061,040 shares.

 

Is this correct or am I missing something?

 

 

Other interesting subjects if anyone else knew would be 1) What percentage of ESL Investments is Lampert's 2) What percentage of the Lion Fund is Biglari's. While I understand that it is their fund so they have an incentive to treat all of it like their own, just out of interests sake knowing actually ownership percentages would be interesting.

 

 

 

[Parsad]

Hi Kyle,

 

I believe you are mostly correct.  I think Prem bought some shares personally after 2001, especially through 2003-2005.  You would have to check the filings.  But for the most part that seems correct.  Cheers!

[StubbleJumper]

I seem to recall that Prem's original shares and the shares held by Sixty-two are multiple voting shares.  On the other hand, the shares that he bought in recent years would be the same subordinate voting shares that anyone can buy on the TSX.  While the economic interest may be the same, the voting element is an important distinction.

[Grenville]

http://www.sec.gov/Archives/edgar/data/915191/000095012310011704/o59521csc13gza.htm

 

Prem Watsa's ownership info in Fairfax.