Parsad Posted April 11 Posted April 11 Here we go boys and girls! The meeting should start any moment. I'll try and put up stuff of interest...please contribute if you are listening as well! Cheers!
Parsad Posted April 11 Author Posted April 11 Prem looks great! Greatest year in Fairfax's 39 year history must help! Started off the meeting with a terrific joke. Introduced Ukraine subsidiary Presidents. Cheers!
Parsad Posted April 11 Author Posted April 11 Talked about how their success since 1985 puts them in the top 1%. Expects the next five years to be very good for Fairfax shareholders! "Made in India" by Amitabh Kant...a book recommendation. Thanked the Fairfax directors. Talked about the passing of Tony Hamblin. Rick Salsberg is missing his first AGM in 38 years due to some health issues. Brad Martin is retiring after 26 years. Cheers!
Parsad Posted April 11 Author Posted April 11 Peter Clarke finished 2nd year as President...will join Prem in the Q&A...Peter will run all quarterly calls with Jen and Wade going forward. Prem is not retiring, just wants the "youngsters" to get more opportunities. Cheers!
Parsad Posted April 11 Author Posted April 11 New investment...will help thousands of autistic children...Thrive Guide...has helped 5 kids from Fairfax with excellent results! Next Fairfax India trip...January 2025...highly recommend, as Prem says, it was a trip of a lifetime! Thanked the managers at Fairfax. Last year, Prem and Nalini celebrated 50 years of marriage! Congratulations! Donations program is 2% of pre-tax profits...compounded at 17% annualized. Cheers!
MMM20 Posted April 11 Posted April 11 6 minutes ago, Parsad said: Peter Clarke finished 2nd year as President...will join Prem in the Q&A...Peter will run all quarterly calls with Jen and Wade going forward. Prem is not retiring, just wants the "youngsters" to get more opportunities. Cheers! Very good news IMHO. Wish BRK would do the same.
Parsad Posted April 11 Author Posted April 11 Annual Operating income is expected to be around $4B+ for the next few years: Interest & Dividend Income $2B+ Underwriting Profit $1.25B Share of Profit from Associates $0.75B+ Potential earnings...$125 per share before investment gains! Cheers!
Parsad Posted April 11 Author Posted April 11 21,233 employees now in over 100 countries! Prem believes inflation will be a slight problem going forward...costs are rising everywhere. Bought 5-7 year treasuries in Q4 2023...locked in $2B+ in income...4.6% yield on fixed income portfolio. Close to $7B invested in India now...expect growth over decades! Cheers!
Parsad Posted April 11 Author Posted April 11 On Greece: Continues to think that Greece is the best European country to invest in. On Inflation...claims inflation...how to keep CR's down: Peter: Still good margins...single digit increases...keeping up with claims inflation. Make sure we reserve well as well. Andy: Dynamics are changing. Growth in the last decade is not likely to be repeated...more competition...some lines significant rates deterioration...some areas things are good. Overall, markets are still pretty good. Cheers!
Parsad Posted April 11 Author Posted April 11 On moving to corporates in the fixed income portfolio: Prem: We have government bonds that will take us to the next 4 years...somewhere in there, we believe rates will cause a recession. When corporate rates widen, we would then look at that possibility. We react pretty fast with Brian and the team! On Kennedy Wilson: Prem: Investments have done well with KW. Pacific Western Bank Construction Loans are interesting. Bill: Dislocation in 2023 caused liquidity to dry up at a couple of banks...which allowed KW to buy the construction loans at a discount, plus brought over the team from there which has grown the business for KW. On Poseidon: Prem: Hugely successful investment! David: Ships we are delivering this year would cost 30% more...some built in margins as ships delivered. Ships go on to charter immediately...we do not take fuel risks. Fairfax's investment should go up 50% in value this year simply based on increased cash flows! $18B of contracted leases out years! Cheers!
Parsad Posted April 11 Author Posted April 11 Prem's grand-daughter asked the question: How many women are in leadership roles? 2 so far...more to come! On Charlie Munger: Prem: Early on, Berkshire depended on bond gains. Later on, they generated operating income. Charlie reiterated patience when seeking opportunity. Buying good businesses at fair prices...Fairfax is trying to focus on that now. One shareholder continues to use his Blackberry! Feels that BB could have a second coming. Prem: I've been hoping for a second coming for 10 years! Praised John Chen's efforts, but company could not grow. Prem stepped off the board when John left, since he backed John. Wishes BB nothing but the best. Cheers!
Parsad Posted April 11 Author Posted April 11 On Eurobank: Prem: Eurobank remains very cheap! Fokion: Will start paying first dividend with about a 5% yield. We expect interest rates to start dropping in Europe later this year. We expect to continue to hit 15% ROE. On Orla Mining: Prem: Terrific sponsorship...Pierre Lassonde...one of the lowest cost producers...bet on Pierre and his team. Cheers!
Parsad Posted April 11 Author Posted April 11 On Fairfax exposure to China: Prem: Exposure to China is very minimal. Interest is not expanding in China. Preference is for democratic countries like India. On the TRS...could counterparty say "no mas!" Prem: We have terms with counterparty...can extend the terms. They have a hedging mechanism. We like our company and believe it is extremely inexpensive. Hilarious question and comments by boardmember Alan Chan! He's happy with the outcome, but cannot withstand another 26 years of the journey as in the past. Prem: We've never been in a position like this...transformational. You're pain will be minimal! Cheers!
Parsad Posted April 11 Author Posted April 11 I have to say, we're 3.5 hours in and this AGM has been fantastic so far! One of the best ones I've seen...probably the most comparable to Berkshire AGM's. Prem was on it, looked great and you can see how deep the team is. If FFH has seen the light on their transformation...we may finally see the potential this company has! I've been a shareholder for 22 years...I'm more optimistic than ever! Cheers! 1
Junior R Posted April 11 Posted April 11 did anyone find out how to sign up for the 2025 fairfax india trip
This2ShallPass Posted April 11 Posted April 11 56 minutes ago, Parsad said: Prem: Early on, Berkshire depended on bond gains. Later on, they generated operating income. Charlie reiterated patience when seeking opportunity. Buying good businesses at fair prices...Fairfax is trying to focus on that now. Thanks for the running commentary @Parsad! Much appreciated. Great to see Prem commenting on buying at a fair price, that's the only practical way to invest all the money coming in next few years.
Xerxes Posted April 11 Posted April 11 Thanks Parsad for the flow of goodies. I ll just add that Prem emphasized a lot “transformational”, “operating businesses and less so trading”, “bigger size” etc that allows it to be less “wild” that was my takeaway
vakilkp Posted April 11 Posted April 11 1 hour ago, Parsad said: On the TRS...could counterparty say "no mas!" Prem: We have terms with counterparty...can extend the terms. They have a hedging mechanism. We like our company and believe it is extremely inexpensive. Is this in terms of current price of FFH or the mechanics of the TRS? Thanks for the running commentary
Parsad Posted April 11 Author Posted April 11 1 minute ago, vakilkp said: Is this in terms of current price of FFH or the mechanics of the TRS? Thanks for the running commentary Both. Essentially, because FFH's price remains cheap, they will continue to extend the TRS. Cheers!
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