Fairfax 2024

[Junior R]

1 minute ago, gfp said:

Carson Block question!

 

 

he seems worried on his short position 

[gfp]

Disclosure regarding associates that have been on the balance sheet since Jan. 1 2020.  Cash in / cash out / profits booked / contingent liabilities question.

 

Will you be disclosing these transactions?

 

Jen Allen taking the question.

 

"disclosed under IFRS in our annual report"

 

Block, "Rather than going for the bare minimum that IFRS requires, why not go for enhanced disclosure.  Why leave it there?"

 

Next question please

[Parsad]

12 minutes ago, Gamecock-YT said:

CFO really leaning on their auditors to carry a lot of these answers

 

When you look at adjustments, discounts, calculating fair value, taxation related issues, attributed income classifications, etc...it's the auditors that make these calculations or at the very least review them and confirm them.  Cheers!

[Parsad]

Just now, gfp said:

Disclosure regarding associates that have been on the balance sheet since Jan. 1 2020.  Cash in / cash out / profits booked / contingent liabilities question.

 

Will you be disclosing these transactions?

 

Jen Allen taking the question.

 

"disclosed under IFRS in our annual report"

 

Block, "Rather than going for the bare minimum that IFRS requires, why not go for enhanced disclosure.  Why leave it there?"

 

Next question please

 

Is this guy a moron or what?  Now he's not disputing accurate disclosure, but why doesn't Fairfax provide enhanced disclosure above and beyond what is required!  Cheers!

[gary17]

1 minute ago, gfp said:

Disclosure regarding associates that have been on the balance sheet since Jan. 1 2020.  Cash in / cash out / profits booked / contingent liabilities question.

 

Will you be disclosing these transactions?

 

Jen Allen taking the question.

 

"disclosed under IFRS in our annual report"

 

Block, "Rather than going for the bare minimum that IFRS requires, why not go for enhanced disclosure.  Why leave it there?"

 

Next question please

 

It's too early for popcorn.  

 

[Daphne]

1 minute ago, gfp said:

Disclosure regarding associates that have been on the balance sheet since Jan. 1 2020.  Cash in / cash out / profits booked / contingent liabilities question.

 

Will you be disclosing these transactions?

 

Jen Allen taking the question.

 

"disclosed under IFRS in our annual report"

 

Block, "Rather than going for the bare minimum that IFRS requires, why not go for enhanced disclosure.  Why leave it there?"

 

Next question please

Asked and answered dirtbag..next!

[Parsad]

I'm not sure the fireworks are going to happen...they kind of fizzled from MW's perspective.  Cheers!

[gfp]

Interest & Dividend income "locked" at approx. $2 Billion annually for approx. 4 years.

 

If soft landing, we can renew at these rates.

 

If hard landing, interest rates can go down, but the spread on corporate bonds can increase.  

 

Atlas forecast - $300 million going to $600 million by 2025 and Fairfax still sees that forecast as appropriate.

[Gamecock-YT]

4 minutes ago, Parsad said:

 

When you look at adjustments, discounts, calculating fair value, taxation related issues, attributed income classifications, etc...it's the auditors that make these calculations or at the very least review them and confirm them.  Cheers!

 

it's just an observation, i'm intimately familiar with what an auditor does

Edited February 16, 2024 by Gamecock-YT

[Parsad]

Stock is up $4.40 so far in Toronto.  Cheers!

[gfp]

Long history of reserve redundancies.  Question was about reserve releases.  Over time our reserve releases could well be significant.

 

4th quarter gets more "full" reviews for reserve releases / adjustments.

 

2016 and 2018 years at Allied and Crum & Forstner have had some unfavorable development similar to the industry experience at large.  That effect is overwhelmed by positive adjustments elsewhere and for other years.

[gfp]

Call over

 

[Junior R]

2 minutes ago, Parsad said:

Stock is up $4.40 so far in Toronto.  Cheers!

no volume interesting again 

[Gregmal]

I love when they mouth off and short first and then ask questions later…ultimately ending up begging for better disclosure because they didn’t do the appropriate work in the first place and got it wrong. 

[StubbleJumper]

8 minutes ago, gfp said:

Disclosure regarding associates that have been on the balance sheet since Jan. 1 2020.  Cash in / cash out / profits booked / contingent liabilities question.

 

Will you be disclosing these transactions?

 

Jen Allen taking the question.

 

"disclosed under IFRS in our annual report"

 

Block, "Rather than going for the bare minimum that IFRS requires, why not go for enhanced disclosure.  Why leave it there?"

 

Next question please

 

Yep.  Go pound sand!

[MMM20]

8 minutes ago, juniorr said:

he seems worried on his short position 

wait, did I imagine him saying “goddammit” before they cut off his mic?

[Junior R]

1 minute ago, MMM20 said:

wait, did I imagine him saying “goddammit” before they cut off his mic?

Didn't hear that need to wait for replay lol

[Luke]

I was in the call at last, what a shitshow for MW, desperate question and especially ugly when he pushed for "further" details above what is required to insinuate any problems...sleezy guy...

[Luke]

I didnt hear any goddammit. 

 

I think they where right to stop giving him any space. He is a fool and the reaction from watsa was good. Get lost MW!

[gfp]

2 minutes ago, MMM20 said:

wait, did I imagine him saying “goddammit” before they cut off his mic?

 

I think that was Prem hollering something on a hot mic - not sure what he said but it might have just been a greeting to the next analyst.

[Smile]

This might be of some use!

 

FFH conf call notes.txt

Edited February 16, 2024 by Smile

[Thrifty3000]

In what universe are you given ONE make-or break-question on a company’s conference call - where everyone knows your intent is to take down said company - and your ONE question is WHY DON’T YOU DISCLOSE MORE INFORMATION??

 

Oh brother, that was really pathetic.

 

FFH is worth $1500 to $1800 USD per share. Kudos to Prem & Co. for a job very well done!

[jbwent63]

I thought Jen was a superstar on the call. I am an accountant so what she says isn't gobbledegook like it could be for non-accountants. I loved it when she stuck the knife in "IFRS is not USGAAP". That was an FU to Mr. Block. Then he asks for more disclosure of immaterial items. Sorry, that's not how it works. In my opinion Fairfax's disclosures are quite comprehensive, especially when compared to MRK or BH (Markel lumps all its non-insurance Ventures investments into one bucket with little further detail other than a breakdown into categories). It will be interesting to see if FFH increases any of its disclosures in the 2023 AR. I thought Prem sounded strong (pissed off maybe) and Mr. Clarke was nervous...although that may be par for the course with him (I don't recall thinking this on earlier calls). So now, what does everyone think about the AGM? Does Mr. Block show his face?

[gfp]

I assume Mr. Block will be long gone by the AGM.  I think Fairfax does have a more "accurate" or "up-to-date" book value than, say, Berkshire and should trade at a lower price to book ratio than Berkshire all else being equal (they are not equal, Fairfax has higher growth, more float leverage and generally lower quality earnings vs. BRK).  Berkshire's carrying values rarely get re-marked higher by transactions.  Marmon and Pilot are two recent examples of required Fairfax-style write-ups but we will probably never see BNSF or GEICO marked up on Berkshire's balance sheet.

[TwoCitiesCapital]

Going to be honest - the share price reaction to an a amazing earnings report is a bit disappointing

 

Makes me wonder if 1) the market had it "right" and the earnings rally was what we saw in January or 2) if we're back to the days of the getting the earnings look for free and the stock responds 2-3 days later

 

Either way - I am somewhat shocked we didn't get a pop of 5-10% from market participants who haven't been following this as closely as we have.