Fairfax 2026

[KFS]

On 6/14/2026 at 5:54 PM, SafetyinNumbers said:

They also used their more fairly valued stock to buy Allied World which reduced the impact of the hedging strategy by issuing equity and dramatically increased the float ahead of what they expected to be an increase in interest rates. That ultimately took a lot longer to happen. They were already in talks with AW in September of that year but they did bump in December to help get the AW BOD on board. Another example of how Fairfax often expresses the same bet in a multitude of ways.

 

 

Not to be nitpicky here but just to clarify, I'm not sure I would have called the stock fairly valued during this transaction.  Fairfax issued 5.1 million shares at a P/B of only 1.06 to acquire Allied World.  Of course it has worked out great over the years, but I don't remember it being an obviously good move at the time.  

 

From the 2017 annual report: