ValueMaven Posted February 11 Share 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 Link to comment Share on other sites More sharing options...
StubbleJumper Posted February 11 Share 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 Link to comment Share on other sites More sharing options...
SafetyinNumbers Posted February 11 Share 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 Link to comment Share on other sites More sharing options...
Xerxes Posted February 12 Share Posted February 12 That is some monster buyback Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now