Fairfax 2024

[SafetyinNumbers]

19 minutes ago, giulio said:

I am of the opposite view. Given how hard they worked to set it up, the difficult regulatory environment and their long term view of India, I believe they will hold on to shares for a long time.

They might sell some if valuation gets truly outrageous but they'll keep a majority.

Possibly they will increase their stake if allowed to.

 

Best,

G

I think they will also hold Digit for a long time. I also think they will hold the TRS for a long time.

[TwoCitiesCapital]

28 minutes ago, giulio said:

I am of the opposite view. Given how hard they worked to set it up, the difficult regulatory environment and their long term view of India, I believe they will hold on to shares for a long time.

They might sell some if valuation gets truly outrageous but they'll keep a majority.

Possibly they will increase their stake if allowed to.

 

Best,

G

 

My hope would be similar to my hope for Exor and their Ferrari position. I don't necessarily want Exor to sell Ferrari when Ferrari's valuation is stupidly high. I want Exor to exert its majority control to compel Ferrari to issue shares/capital at those levels.

 

It's not as clean as a share sale and probably doesn't lock in as much of the upside, but it avoids taxes, maintains a control position (assuming you don't get diluted too much), and puts in a higher-floor for the Ferrari shares while giving them balance sheet flexibility. 

 

I would hope the same for Fairfax/Digit until the market is more mature. 

[Xerxes]

1 hour ago, TwoCitiesCapital said:

 

My hope would be similar to my hope for Exor and their Ferrari position. I don't necessarily want Exor to sell Ferrari when Ferrari's valuation is stupidly high. I want Exor to exert its majority control to compel Ferrari to issue shares/capital at those levels.

 

It's not as clean as a share sale and probably doesn't lock in as much of the upside, but it avoids taxes, maintains a control position (assuming you don't get diluted too much), and puts in a higher-floor for the Ferrari shares while giving them balance sheet flexibility. 

 

I would hope the same for Fairfax/Digit until the market is more mature. 

On EXOR and Ferrari, isn’t Ferrari issuing shares anti-thesis to the scarcity of their formidable brand and their commanding position. 

[TwoCitiesCapital]

21 minutes ago, Xerxes said:

On EXOR and Ferrari, isn’t Ferrari issuing shares anti-thesis to the scarcity of their formidable brand and their commanding position. 

 

The value is in the scarcity of their cars. 

 

If people bid up the shares, issue shares to meet the demand. Buy them back opportunistically. 

 

Is a better solution than selling the shares, paying taxes, and losing control of irreplaceable asset. 

Edited 19 hours ago by TwoCitiesCapital