The Fairfax Way: Inside Prem Watsa's Secret to Lasting Success - David Thomas

[John Hjorth]

33 minutes ago, dlr1493 said:

Hi everyone! Excited to read this. I had it on preordered on Amazon but cancelled as it won't arrive to me in time before I travel! However, I have seen it on Audible. From those that have read, am I best waiting to get my hands on a physical copy or do you think it'll still be good audio format? I live in UAE and can't find any physical copies here!

 

Hi @dlr1493!,

 

If you can't find a physical copy in UAE of the book, isen't it then about reordering the book at Amazon? - Combined with some patience? 

 

- - - o 0 o - - -

 

And a belated welcome to you here on CofB&F, by the the way & also! 

Edited November 25, 2025 by John Hjorth

[dlr1493]

Thanks! Well I have a month off soon and I'm travelling through December, so I have an opportune time to listen. I can get the audio book no problem but was wondering if it would be better to hold off and wait for the physical version. I have listened to some finance books before and find myslef rewinding a lot or needing to see charts. Basically asking if this is like that or would it be just as enjoyable to listen?

Edited November 25, 2025 by dlr1493

[John Hjorth]

Thank you for the elaboration, @dlr1493,

 

I'm sorry I can't be of help with that.

[wescobrk]

For those that don’t like the physical copy just order one for your kindle. 1) it arrives instantly; 2) one can adjust the font; 3)it’s easier to carry around if one has to travel a lot 

[SafetyinNumbers]

If anyone buys this workbook, please provide a review here. It ships next week. 

 

https://www.amazon.ca/Most-Real-Knowledge-Fairfax-Workbook/dp/B0G2SYVT53/ref=sr_1_3?crid=2I4Q794Z1F3MF&dib=eyJ2IjoiMSJ9.96I3NJ95OtEEi_BeosN3o0KrTamTmjEWm4Xr8oC92RIFdEwrUATHZzqsI4dO1uXgPqDcvEqWx2-B0hXNWFamprcmZ1HRuQoPnkwS6dBXH2Icph9yo_Zmnuoi62DDQ7KmF8g-nV2R3-ckptQ-L0X9sNVwSjoITkQ8T-xj_0oVoy6KvZzAKcCWaAopk1WQwWVJ.-ZWfH-gsOvhEtf0RTr3Dwbu3tfDtOrcMFoGQLpSwms4&dib_tag=se&keywords=the+fairfax+way&qid=1764511462&sprefix=The+Fairfax+way%2Caps%2C101&sr=8-3

[Crip1]

On 11/29/2025 at 7:10 PM, wescobrk said:

For those that don’t like the physical copy just order one for your kindle. 1) it arrives instantly; 2) one can adjust the font; 3)it’s easier to carry around if one has to travel a lot 

Adding that the Kindle is easy on the eyes, and easy to read in most any light (beach, dark room and everywhere in between.

 

-Crip

[Xerxes]

https://podcasts.apple.com/ca/podcast/yet-another-value-podcast/id1526149547

 

[SafetyinNumbers]

On 12/16/2025 at 12:52 PM, Xerxes said:

https://podcasts.apple.com/ca/podcast/yet-another-value-podcast/id1526149547

 

Feedback has been that generally people didn’t like this interview so what questions do you think could have made it a more interesting discussion?

[djokovic1]

4 hours ago, SafetyinNumbers said:

Feedback has been that generally people didn’t like this interview so what questions do you think could have made it a more interesting discussion?

@SafetyinNumbers As said by another poster, it was less the questions but the answers. Unfortunately, in my view David, didn't have the depth of knowledge to engage the audience and provide good insight.

[SafetyinNumbers]

Just now, djokovic1 said:

@SafetyinNumbers As said by another poster, it was less the questions but the answers. Unfortunately, in my view David, didn't have the depth of knowledge to engage the audience and provide good insight.

I think he was asked questions that an investor would know the answers to or have an opinion on but that a journalist would not which put him in a tough position. 

[Xerxes]

7 hours ago, SafetyinNumbers said:

Feedback has been that generally people didn’t like this interview so what questions do you think could have made it a more interesting discussion?

will get back on that. Still in the 1990

in the book. 
 

That said I did listen to the podcast; I thought it was ok. But I think the host lost credibility when he screwed up the book value FX thing … as other have pointed out 

[SafetyinNumbers]

2 hours ago, Xerxes said:

But I think the host lost credibility when he screwed up the book value FX thing … as other have pointed out 

It’s a pretty common mistake. Under appreciated reason the stock is cheap. It doesn’t screen well. 

[villainx]

10 hours ago, SafetyinNumbers said:

I think he was asked questions that an investor would know the answers to or have an opinion on but that a journalist would not which put him in a tough position. 

 

No pass from me, his beat was in finance, got to know your stuff.  Then again, I haven't read book yet, but most folks here say it's more about narrative, and not enough on numbers.  

[SafetyinNumbers]

10 minutes ago, villainx said:

 

No pass from me, his beat was in finance, got to know your stuff.  Then again, I haven't read book yet, but most folks here say it's more about narrative, and not enough on numbers.  

Big difference between reporting and investing. Otherwise most financial journalists would be great investors instead as the jobs aren’t that different except for the probabilistic analysis part and the latter pays a lot better. 

[wondering]

I just finished reading the book. Here is my take-aways.

 

It's the book you need, but don't want. 

 

The need: Even though I have been a shareholder for 20+ years and been a member of this board for 15+ years or so, I still learned a few new things about the company.  After reading the book, I have a better appreciation of why Fairfax puts so much emphasis on corporate culture.  This is something that don't appear in a stock screener but they are so important to the firm, and a key ingredient to the long term success of the company.  It's no wonder that Morningstar hates the stock so much.

 

The book is honest in that it freely admits the mistake Prem has made in the past (re early insurance co purchases, index shorts).  But it also shows how he has learned from past mistakes.  The company recently purchased a French insurance company.  Given their experiences, I fairly confident that this purchase will work out in the long run.

 

The want: I would have like to see a greater biography sketch of Prem, but there wasn't much new stated in the book.  I have to admit this is only my curiosity, not actually important for me as shareholder.  Also, I would have like to see perhaps a case study of their analysis of a past investment (how did they arrive at IV etc).

 

Overall, the book is well worth the cost for any FFH shareholder or anyone thinking of investing in FFH.  The company is a bit of an oddball compared to most public companies, and this book does an excellent job why the company is odd and how management wants to keep it that way.

 

[Xerxes]

I am more than half way through the book. And I really like it. 

I would highly recommend. Sure a lot of people are familiar with the story. But nothing works like a book that goes back to the 1990s and takes you to the present, and lays the foundation. 

For those of you seeing perhaps a glass half full, think of it as research, the next book (by whoever) will build on this book and explore other avenues of the story. There is the opportunity for those interested to take the pen. At one point the hypothetical 10th book can even do some Sun Zsu Art of War Kang-Fu stuff. 
 

 

[Crip1]

Finished the book and definitely liked it. Odd thoughts:

 

* When reading it, I remember thinking that the first 2/3rds was mostly chronological, but not completely. This was a little confusing at times. I see what the author was doing and can't say he was wrong for doing it...just that it caused a little frustration.

 

* I lived through the short attack but really did not realize how close the company came to really being killed, and did not realize how the lawsuit (which I thought at the time was taking management time/effort away from running the business) was really what saved them.

 

* The two major errors made by the company was buying sub-standard insurers in the earlier years which caused huge problems, and the hedging strategy of 2010's. The author provided some good detail on the former, but I would have liked to have heard more about the latter.

 

* Culture...it really is as close to a moat as a company can get. They've talked about it for eons, but it really is a huge key to not only their success, but the ongoing investment thesis. 

 

Definitely recommend it as it's a good business "story", and especially recommend it if one is a shareholder...it's key to knowing what we own.

 

-Crip

 

P. S. If anyone purchases the workbook, please post your thoughts. Part of me sees it as a money-grab for the author (not critical...I am a capitalist) so I am disinclined to purchase. On the flipside, if the workbook takes the thought process of investing in this company and puts them into a framework, than it may be well worthwhile.

 

-Crip

 

[SafetyinNumbers]

1 hour ago, Crip1 said:

P. S. If anyone purchases the workbook, please post your thoughts. Part of me sees it as a money-grab for the author (not critical...I am a capitalist) so I am disinclined to purchase. On the flipside, if the workbook takes the thought process of investing in this company and puts them into a framework, than it may be well worthwhile.

 

The workbook is AI. Not affiliated with the author. 

[SafetyinNumbers]

1 hour ago, Crip1 said:

The two major errors made by the company was buying sub-standard insurers in the earlier years which caused huge problems, and the hedging strategy of 2010's.

I think it was an intentional bet. Issuing equity well above book value to buy float at a discount to book knowing that there going to be plenty of losses in the portfolio. I haven’t worked out what the actual economic returns were but my guess is they were pretty good. 

[Crip1]

44 minutes ago, SafetyinNumbers said:

The workbook is AI. Not affiliated with the author. 

I did not even notice that...ugh. Thanks for the knowledge.

 

-Crip

[steph]

I am a shareholder since 2005 and I really like this book.  I still learned interesting things, especially about the first decade. It reads almost as a thriller.  Lot's of emphasis on the bad moments, the hard part, things that went wrong.  Which often gives the impression that it is a shitty company, but in the end the growth of book value is extraordinary.  But it is a wonderful tribute to Prem, for whom you can only have an enormous amount of respect.  

[Pellom]

Listened to the audiobook and it felt very similar to Hagstrom's "The Warren Buffett Way."

 

It's clear there was not much in the way of hard investigative journalism here -- just talking to insiders and getting their story of the company. Still very interesting, nonetheless.