Fairfax 2025

[gfp]

Fairfax owns 49.9% of The Sixty Two Investment Company Limited, purchased in 1992.

 

 

(https://www.fairfax.ca/wp-content/uploads/1992-Letter.pdf)

Edited November 4, 2025 by gfp

[dartmonkey]

28 minutes ago, gfp said:

Fairfax owns 49.9% of The Sixty Two Investment Company Limited, purchased in 1992.

 

 

(https://www.fairfax.ca/wp-content/uploads/1992-Letter.pdf)

Here's what Grok has to say - is it incorrect?

 

My question:

Can you provide an explanation of the ownership Fairfax by Sixty Two Investment company and how much of Sixty Two Investment company is owned by Prem Watsa and his family?

 

Grok's answer:

 

Ownership Structure of Fairfax via The Sixty Two Investment Company Limited1. Fairfax’s Multiple Voting Shares (MVS)

• Total outstanding MVS: 1,548,000 (each with 10 votes per share)
• All 1,548,000 MVS are owned directly by The Sixty Two Investment Company Limited (“Sixty Two”)
• This gives Sixty Two ~41.8% of total voting power in Fairfax (despite holding only ~10% of economic equity)

---

2. Ownership of The Sixty Two Investment Company Limited

Owner	% Ownership	Notes
1109519 Ontario Limited (“1109 Holdco”)	100%	Private holding company
V. Prem Watsa	100% control and beneficial ownership of 1109 Holdco	Confirmed in SEC Schedule 13G, Fairfax proxy circulars, and CRTC filings

Conclusion:
Prem Watsa and his family own 100% of The Sixty Two Investment Company Limited — indirectly through 1109 Holdco, which he fully controls.

---

3. Historical Context (No Ongoing Fairfax Ownership)

• 1992: Fairfax acquired a 49.9% stake in Sixty Two from original 1985 investors (who had backed Watsa’s turnaround of Markel)
• Over time: Through internal restructurings (for estate planning, tax, and succession), Fairfax’s 49.9% was effectively retired or transferred, leaving 100% ownership with Watsa via 1109 Holdco
• Today: Fairfax owns 0% of Sixty Two — it is 100% privately held by Prem Watsa

[SafetyinNumbers]

20 minutes ago, dartmonkey said:

Here's what Grok has to say - is it incorrect?

 

 

My question:

Can you provide an explanation of the ownership Fairfax by Sixty Two Investment company and how much of Sixty Two Investment company is owned by Prem Watsa and his family?

 

Grok's answer:

 

Ownership Structure of Fairfax via The Sixty Two Investment Company Limited1. Fairfax’s Multiple Voting Shares (MVS)

• Total outstanding MVS: 1,548,000 (each with 10 votes per share)
• All 1,548,000 MVS are owned directly by The Sixty Two Investment Company Limited (“Sixty Two”)
• This gives Sixty Two ~41.8% of total voting power in Fairfax (despite holding only ~10% of economic equity)

---

2. Ownership of The Sixty Two Investment Company Limited

Owner	% Ownership	Notes
1109519 Ontario Limited (“1109 Holdco”)	100%	Private holding company
V. Prem Watsa	100% control and beneficial ownership of 1109 Holdco	Confirmed in SEC Schedule 13G, Fairfax proxy circulars, and CRTC filings

Conclusion:
Prem Watsa and his family own 100% of The Sixty Two Investment Company Limited — indirectly through 1109 Holdco, which he fully controls.

---

3. Historical Context (No Ongoing Fairfax Ownership)

• 1992: Fairfax acquired a 49.9% stake in Sixty Two from original 1985 investors (who had backed Watsa’s turnaround of Markel)
• Over time: Through internal restructurings (for estate planning, tax, and succession), Fairfax’s 49.9% was effectively retired or transferred, leaving 100% ownership with Watsa via 1109 Holdco
• Today: Fairfax owns 0% of Sixty Two — it is 100% privately held by Prem Watsa

Yes, AI got it wrong.

 

This disclosure is in the 2024 AR:

 

[Crip1]

4 hours ago, Junior R said:

heads up sale right now $2200 went down to $2175

My apologies to everyone for not disclosing that I bought yesterday morning at US$1,615. True to my anti-Midas touch, it's down 3.5% in the 24 hours since I bought in. I should have mentioned this so that anyone who was looking to buy would have waited a day or two for "anti-Midas" to click in. 

 

-Crip

[Junior R]

1 minute ago, Crip1 said:

My apologies to everyone for not disclosing that I bought yesterday morning at US$1,615. True to my anti-Midas touch, it's down 3.5% in the 24 hours since I bought in. I should have mentioned this so that anyone who was looking to buy would have waited a day or two for "anti-Midas" to click in. 

 

-Crip

lol Thursday after hours this will stop...After earnings ...I think right now quite period and with a big drawdown in FFH people are worried when they don't realize earnings will be good 

[TwoCitiesCapital]

18 minutes ago, Junior R said:

lol Thursday after hours this will stop...After earnings ...I think right now quite period and with a big drawdown in FFH people are worried when they don't realize earnings will be good 

 

 

+1 

 

I repurchased the small portion of the position I sold earlier this year today at $1,565 to get in before earnings which I expect will still be strong. 

 

Saved $50-150/SH on the lots sold. Not a home run by any means, but always nice when a roundtrip works out. 

 

Always nice to know Fairfax is likely still in the market with this NCIB sopping up the liquidity from weak hands during these types of markets. Hopefully price recovers some before YE when Fairfax will have a few truckloads of cash to be delivering to TRS counterparties otherwise. ~$330-$350 million at todays count. 

 

Edited November 4, 2025 by TwoCitiesCapital

[gfp]

Everyone can agree that when Sardar Biglari uses shareholders' capital to buy personal control of the public company for himself through a private vehicle he controls it is just disgusting and abhorrent corporate governance.  When Prem does it we shrug and say, "we like Prem, we want him to have control."

 

And I agree.  I like Prem and I trust Prem and I want him to have control, despite that also meaning there will never be a change of control premium for Fairfax investors.

[Munger_Disciple]

56 minutes ago, gfp said:

Everyone can agree that when Sardar Biglari uses shareholders' capital to buy personal control of the public company for himself through a private vehicle he controls it is just disgusting and abhorrent corporate governance.  When Prem does it we shrug and say, "we like Prem, we want him to have control."

 

And I agree.  I like Prem and I trust Prem and I want him to have control, despite that also meaning there will never be a change of control premium for Fairfax investors.

 

While I am not thrilled and am quite unhappy with the manner in which Prem obtained control of FFH, I would argue that Prem is an order of magnitude  better for shareholders than Biglari. He takes a modest salary, no option grants and most importantly doesn't have a ridiculous "carry" over book value that Biglari has which truly screws his BH shareholders constantly & repeatedly. 

 

Edited November 4, 2025 by Munger_Disciple

[gfp]

12 minutes ago, Munger_Disciple said:

 

While I am not thrilled and am quite unhappy with the manner in which Prem obtained control of FFH, I would argue that Prem is an order of magnitude  better for shareholders than Biglari. He takes a modest salary, no option grants and most importantly doesn't have a ridiculous "carry" over book value that Biglari has which truly screws his BH shareholders constantly & repeatedly. 

 

 

Oh yeah - I agree.  Prem is good.  And Prem didn't obtain control that way - he already had control.  He just didn't lose half his super votes when his early partners wanted liquidity.  Fairfax bought the interest in Sixty Two at a discount of something like 15% to the market price of the stock.  They tried to do it in a fair way.

 

But they still aren't going to cancel those voting shares and THAT part is just like Sardar.

 

Ironically, Prem / Fairfax participated in the tender offer arbitrage that gave Sardar control of BH.  1200 shares bought and tendered at $420 pre split in 2015...

Edited November 4, 2025 by gfp

[Munger_Disciple]

32 minutes ago, gfp said:

 

Oh yeah - I agree.  Prem is good.  And Prem didn't obtain control that way - he already had control.  He just didn't lose half his super votes when his early partners wanted liquidity.  Fairfax bought the interest in Sixty Two at a discount of something like 15% to the market price of the stock.  They tried to do it in a fair way.

 

But they still aren't going to cancel those voting shares and THAT part is just like Sardar.

 

 

[Santayana]

It’s hard for me to fault him for doing what’s necessary to make sure someone else can’t change the culture of the company.

[Marco Van Basten]

Fairfax to take KW private

[Parsad]

7 hours ago, dartmonkey said:

 

Although obviously no one has to justify what they do, count me confused as well. If it's too expensive to start a new position of any size, because of a hurdle rate of 15-20% that you're aiming for, then I could see the sense in holdiing a small position at the current if it's to avoid capital gains, but if it's just a matter of a hurdle rate, how to justify holding a position, especially if it's a huge position like 30%? In other words, apart from taxes, is there any reason to treat an existing position differently from a new position?

 

 

 

No, there isn't.  Unless you want to retain a position because you have exposure to that idea, but are waiting for a fatter pitch (same idea or otherwise) to maintain your rate of return on your total portfolio.  The hurdle rate isn't solely for one idea...it's to try and retain that annual rate for the entire portfolio.  It has to surpass what the other ideas, including cash, may lag on in hitting that total return.  Cheers!

[Redskin212]

Details?

I see KW is up 27% in AH

 

[Redskin212]

I see it 

$10.25 all cash deal 36% premium to closing price 

KW setting up special committee to evaluate

looks like FFH taking advantage of the depressed commercial real estate market

they know the company - Interesting

 

[Redskin212]

Kennedy-Wilson receives buyout proposal from CEO and Fairfax Financial

https://www.investing.com/news/sec-filings/kennedywilson-receives-buyout-proposal-from-ceo-and-fairfax-financial-93CH-4332254

 

[Parsad]

2 hours ago, gfp said:

Everyone can agree that when Sardar Biglari uses shareholders' capital to buy personal control of the public company for himself through a private vehicle he controls it is just disgusting and abhorrent corporate governance.  When Prem does it we shrug and say, "we like Prem, we want him to have control."

 

And I agree.  I like Prem and I trust Prem and I want him to have control, despite that also meaning there will never be a change of control premium for Fairfax investors.

 

Prem didn't acquire control of the company the same way as Sardar.  I think I can speak for both, because I was there for both and know both of them well.  

 

Prem always had indirect control through his own position and the stakes of his associates.  They were always 100% behind him.

 

Sardar instituted multiple voting shares to get control after he realized he would have nothing if SNS had gone under and there was dissent amongst shareholders, including those close to him. 

 

Cheers!

[gfp]

21 minutes ago, Parsad said:

Sardar instituted multiple voting shares to get control after he realized he would have nothing if SNS had gone under and there was dissent amongst shareholders, including those close to him. 

 

Cheers!

 

 

Sardar got control in a tender offer before there were two classes of shares.  He used company capital to fund the hedge fund that offered $420/share for the stock (pre-split price), which was a premium and an arbitrage spread persisted into the tender.  There was an attractive spread to be earned in a matter of days and many people participated - which helped him get voting control.

 

Fairfax itself bought and tendered 1200 Biglari shares to capture the spread.

 

That was 2015.

 

The dual class structure was put in place in 2017 or early 2018 when he already had voting control.

Edited November 4, 2025 by gfp

[gfp]

26 minutes ago, Redskin212 said:

Kennedy-Wilson receives buyout proposal from CEO and Fairfax Financial

https://www.investing.com/news/sec-filings/kennedywilson-receives-buyout-proposal-from-ceo-and-fairfax-financial-93CH-4332254

 

 

Good deal for everyone.  Maybe results in some messy consolidated accounting taking KW's entire balance sheet onto Fairfax's

 

Didn't someone on this message board ask recently why Prem and Bill hadn't taken this thing private?

 

https://www.sec.gov/ix?doc=/Archives/edgar/data/1408100/000119312525264971/d58472d8k.htm

Edited November 4, 2025 by gfp

[Junior R]

2 minutes ago, gfp said:

 

Good deal for everyone.  Maybe results in some messy consolidated accounting taking KW's entire balance sheet onto Fairfax's

 

https://www.sec.gov/ix?doc=/Archives/edgar/data/1408100/000119312525264971/d58472d8k.htm

I had feeling this was going happen ...was going buy KW but let it slip...ultimately good value 

[Junior R]

44 minutes ago, Parsad said:

 

No, there isn't.  Unless you want to retain a position because you have exposure to that idea, but are waiting for a fatter pitch (same idea or otherwise) to maintain your rate of return on your total portfolio.  The hurdle rate isn't solely for one idea...it's to try and retain that annual rate for the entire portfolio.  It has to surpass what the other ideas, including cash, may lag on in hitting that total return.  Cheers!

I think awhile back you stated you didn't need the fat pitches any more and wanted to move more towards S&P ...Maybe someone else lol if that was you is that not the case? 20% cagr will be a really good rate of return

[TwoCitiesCapital]

9 minutes ago, gfp said:

 

Good deal for everyone.  Maybe results in some messy consolidated accounting taking KW's entire balance sheet onto Fairfax's

 

Didn't someone on this message board ask recently why Prem and Bill hadn't taken this thing private?

 

https://www.sec.gov/ix?doc=/Archives/edgar/data/1408100/000119312525264971/d58472d8k.htm

 

Overall probably turns into a good deal sourcing for fixed income and saves them on fees. I like it. 

 

Not to mention it'll bump up their equity holdings in KW to YTD highs marking BV up YTD. 

[Junior R]

Just now, TwoCitiesCapital said:

 

Overall probably turns into a good deal sourcing for fixed income and saves them on fees. I like it. 

 

Not to mention it'll bump up their equity holdings in KW to YTD highs marking BV up YTD. 

Also if they sold CLF during the rare earth hype the funding for this would probably come out of that

[gfp]

3 minutes ago, Junior R said:

Also if they sold CLF during the rare earth hype the funding for this would probably come out of that

 

I've seen you mention it a few times - it is wishful thinking to hope that they blew out their entire position in one day on a brief spike in the CLF share price.  They haven't been very nimble with their equity positions on one-day moves historically 

[Junior R]

7 minutes ago, gfp said:

 

I've seen you mention it a few times - it is wishful thinking to hope that they blew out their entire position in one day on a brief spike in the CLF share price.  They haven't been very nimble with their equity positions on one-day moves historically 

but remember on the earnings call when asked about Blackberry during the hype ..Prem said they where in blackout period if they wheren't they would of sold it....They got CLF from STLC sale so its not something they bought based on their analyst 

 

but it is wishful thinking lol

Edited November 4, 2025 by Junior R