ValueMaven Posted February 11 Posted February 11 Does anyone know how or why shares outstanding declined by 25% in 1991? '25% decrease in the average number of shares outstanding' -- from the 1991 report
StubbleJumper Posted February 11 Posted February 11 41 minutes ago, ValueMaven said: Does anyone know how or why shares outstanding declined by 25% in 1991? '25% decrease in the average number of shares outstanding' -- from the 1991 report One year around that time, FFH's valuation was bat-shit crazy and FFH issued a boat load of shares. Then the price tumbled a year or two later and they bought back a boat load at a much lower price. I don't recall the specific years that occurred, but your mentioning a large drop in shares outstanding does not come as a surprise. One of the complaints about FFH in late-90s and early-00s was that a large chunk of the shareholders' equity was created by issuing an repurchasing rather than simply making money the old fashioned way. I never really viewed that criticism very favourably as you make money however you can.... SJ
SafetyinNumbers Posted February 11 Posted February 11 It was in 1990 as a result of Markel and Fairfax separating. You can read all about it in the annual report. https://www.fairfax.ca/wp-content/uploads/AR1990.pdf
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