Fairfax 2026

[villainx]

6 minutes ago, SafetyinNumbers said:

I assume they have less shares to buy for employees than they did 5 years ago because the stock has moved up faster than total comp. 

 

They repurchased a million shares! 

 

Plus it was a joke!

 

[SafetyinNumbers]

5 minutes ago, villainx said:

 

They repurchased a million shares! 

 

Plus it was a joke!

 

I know but I think it’s relevant. 

[Hoodlum]

3 hours ago, gfp said:

 

In past years they have tended to purchase the shares for this purpose (treasury shares to be issued later for compensation) at the beginning of the year and the shares purchased later in the year - like these recent purchases - have gone towards cancellation.

 

During all of 2025 they purchased 118k shares for Treasury.  In Q1 this year they purchased 52k shares for Treasury.  I believe we may see additional purchases for Treasury this year.

 

(corrected number of shares)
 

Edited 3 hours ago by Hoodlum

[Hoodlum]

14 minutes ago, Hoodlum said:

 

During all of 2025 they purchased 118k shares for Treasury.  In Q1 this year they purchased 52k shares for Treasury.  I believe we may see additional purchases for Treasury this year.

 

(corrected number of shares)
 

 

I noticed that total dollar value of Shares Purchased for Treasury dropped from $240M in 2024 to $189M in 2025.  I am not sure of the reason for this drop as I would expect the total dollar amount to gradually grow over time as the number of employees increase.  So the total dollar amount that is purchased for treasury in 2026 could vary as well.

[MMM20]

6 minutes ago, Hoodlum said:

 

I noticed that total dollar value of Shares Purchased for Treasury dropped from $240M in 2024 to $189M in 2025.  I am not sure of the reason for this drop as I would expect the total dollar amount to gradually grow over time as the number of employees increase.  So the total dollar amount that is purchased for treasury in 2026 could vary as well.

I believe they’re opportunistic with even the shares purchased for comp so it has some lumpiness 

[Hoodlum]

14 hours ago, gokou3 said:

Updated 2025–2026 NCIB Running Ledger

• TSX Approved Program Maximum: 2,187,316 shares

• Absorbed in Q4 2025 (Corrected): 464,742 shares

• Absorbed in Q1 2026: 374,883 shares

• Absorbed in April 2026: 17,100 shares

• Absorbed in May 2026 (via SEDI): 170,000 shares

• Absorbed in June 2026 (via SEDI): 499,413 shares

• Total Program Shares Cancelled to Date: 1,526,138 shares

Remaining NCIB Runway

• Remaining Purchase Capacity: 661,178 shares (valid through September 29, 2026)

 

For the remaining purchase capacity I believe you would also need to include the shares purchased for Treasury.  There were 25k shares purchased in Q4 and 52k shares purchased in Q1.  I am not sure what was purchased for Treasury in Q2.  

 

Edited 3 hours ago by Hoodlum

[Viking]

It appears Fairfax has been very busy on the share buyback front over the past 9 months (Q4-2025 + Q1 + EQ2-2026). We will get confirmation on Q2 amounts when Fairfax reports results.    

• Shares repurchased: 1.5M, for $2.48B, or ~$1,637/share
• Diluted share count reduced: 6.6%
• Total capital returned to shareholders (including dividend): $2.81B

Clearly, Fairfax feels their shares are trading at a very attractive valuation. And they are acting with conviction. 

 

 

----------

 

Shareholder Friendly Management

 

It is counterintuitive, but for long-term shareholders a low share price can actually be a gift — if the company is aggressively repurchasing shares. This is especially true when the discount persists for years.

 

Buffett highlighted two major benefits.

 

1. Higher Per-Share Intrinsic Value

 

This is straightforward arithmetic. When a company repurchases undervalued shares, the ownership stake of remaining shareholders increases. Intrinsic value per share rises immediately.

 

2. A Signal of Shareholder-Friendly Management

 

This second benefit is more subtle — and often underappreciated.

 

When management consistently repurchases stock below intrinsic value, it signals disciplined, shareholder-oriented capital allocation rather than empire building. Over time, investors reward this behavior with a higher valuation multiple.

 

Buffett explained it this way in Berkshire Hathaway’s 1984 Annual Report:

 

 

“The companies in which we have our largest investments have all engaged in significant stock repurchases at times when wide discrepancies existed between price and value. As shareholders, we find this encouraging and rewarding for two important reasons - one that is obvious, and one that is subtle and not always understood. The obvious point involves basic arithmetic: major repurchases at prices well below per-share intrinsic business value immediately increase, in a highly significant way, that value. When companies purchase their own stock, they often find it easy to get $2 of present value for $1. Corporate acquisition programs almost never do as well and, in a discouragingly large number of cases, fail to get anything close to $1 of value for each $1 expended.

 

“The other benefit of repurchases is less subject to precise measurement but can be fully as important over time. By making repurchases when a company’s market value is well below its business value, management clearly demonstrates that it is given to actions that enhance the wealth of shareholders, rather than to actions that expand management’s domain but that do nothing for (or even harm) shareholders. Seeing this, shareholders and potential shareholders increase their estimates of future returns from the business. 

 

“This upward revision, in turn, produces market prices more in line with intrinsic business value. These prices are entirely rational. Investors should pay more for a business that is lodged in the hands of a manager with demonstrated pro-shareholder leanings than for one in the hands of a self-interested manager marching to a different drummer...”  

 

Warren Buffett – Berkshire Hathaway 1984AR

 

 

Edited 2 hours ago by Viking

[Marco Van Basten]

2 hours ago, jbwent63 said:

The huge buybacks in June give us a strong hint at their analysis of capital allocation. They spent about $800 million USD on those buybacks that could have been used for other purposes, investments in bonds, equities, minority buybacks etc. Gives you a sense of how overvalued the markets are in their (and many other people's) minds. I'm interested to see if they sold BB to fund any of this. Secondly, I think we have an option to purchase minority interest in Allied World this summer/fall. I wonder if this buyback is instead of that, or in addition to that investment.

 

Always interesting times at Fairfax.

If they think that markets are overvalued, then they are not looking hard enough.  Plenty of great businesses at very attractive valuations 

[Whensthepaintdry?]

I’m eyeing quite a few companies, but Fairfax keeps winning my money. I’m not sure if it’s the constant influx of Fairfax news that’s making me more convinced than I should be. The setup just seems too good to pass up. 

[Viking]

2 hours ago, Viking said:

It appears Fairfax has been very busy on the share buyback front over the past 9 months (Q4-2025 + Q1 + EQ2-2026). We will get confirmation on Q2 amounts when Fairfax reports results.    

• Shares repurchased: 1.5M, for $2.48B, or ~$1,637/share
• Diluted share count reduced: 6.6%
• Total capital returned to shareholders (including dividend): $2.81B

Clearly, Fairfax feels their shares are trading at a very attractive valuation. And they are acting with conviction. 

 

 

----------

 

 

Shareholder Friendly Management

 

It is counterintuitive, but for long-term shareholders a low share price can actually be a gift — if the company is aggressively repurchasing shares. This is especially true when the discount persists for years.

 

Buffett highlighted two major benefits.

 

1. Higher Per-Share Intrinsic Value

 

This is straightforward arithmetic. When a company repurchases undervalued shares, the ownership stake of remaining shareholders increases. Intrinsic value per share rises immediately.

 

2. A Signal of Shareholder-Friendly Management

 

This second benefit is more subtle — and often underappreciated.

 

When management consistently repurchases stock below intrinsic value, it signals disciplined, shareholder-oriented capital allocation rather than empire building. Over time, investors reward this behavior with a higher valuation multiple.

 

Buffett explained it this way in Berkshire Hathaway’s 1984 Annual Report:

 

 

“The companies in which we have our largest investments have all engaged in significant stock repurchases at times when wide discrepancies existed between price and value. As shareholders, we find this encouraging and rewarding for two important reasons - one that is obvious, and one that is subtle and not always understood. The obvious point involves basic arithmetic: major repurchases at prices well below per-share intrinsic business value immediately increase, in a highly significant way, that value. When companies purchase their own stock, they often find it easy to get $2 of present value for $1. Corporate acquisition programs almost never do as well and, in a discouragingly large number of cases, fail to get anything close to $1 of value for each $1 expended.

 

“The other benefit of repurchases is less subject to precise measurement but can be fully as important over time. By making repurchases when a company’s market value is well below its business value, management clearly demonstrates that it is given to actions that enhance the wealth of shareholders, rather than to actions that expand management’s domain but that do nothing for (or even harm) shareholders. Seeing this, shareholders and potential shareholders increase their estimates of future returns from the business. 

 

“This upward revision, in turn, produces market prices more in line with intrinsic business value. These prices are entirely rational. Investors should pay more for a business that is lodged in the hands of a manager with demonstrated pro-shareholder leanings than for one in the hands of a self-interested manager marching to a different drummer...”  

 

Warren Buffett – Berkshire Hathaway 1984AR

 

 

 

Share buybacks are clearly the dominant use of capital for Fairfax. At 0.9% yield, the dividend is small. But when combined with the buybacks, the total of $2.8 billion over nine months is significant.

 

The interesting thing is this is not the only thing Fairfax is doing on the capital allocation front. Here are a few things from 2026:

• AGT Foods: converted sponsor notes to equity ($249M) + add to position ($146M)
• Under Armour: add to position ~$265M?
• Exit Occidental for proceeds of ~$303M?
• Foran was taken out by Eldorado Gold
• Sale of ~50% of Poseidon for proceeds of $1.9B
• Purchase of Kennedy Wilson for $1.6B
• Purchase of Peller Estates for $279M

Pending:

• Orla Gold takeout by Equinox Gold: set to close in Q3?
• Sale of Eurolife's life insurance business: set to close Q3?

Fairfax has also been very active with debt issuance (and some cancellation).

 

Of note, the insurance business continues to grow modestly.

 

Bottom line, there is a lot going on under the hood in addition to meaningful stock buybacks.

Edited 42 minutes ago by Viking

[dartmonkey]

On 7/9/2026 at 1:14 PM, Crip1 said:

Wow...early June is right about when the share price hit rock bottom. Openly wondering where the share price would be now if these purchases had not happened. Clearly, not too many buyers out there...except for the investors who know more about the company than anyone.

 

-Crip

 

BTW, in that table, what does vol mean? It doesn’t seem to mean volume, here, or at least, if it does, it would just be the volume of shares purchased by Fairfax. For instance, in the first line, $944,698,824 is clearly the amount paid (in $C), +416,600 vol seems to be the number of shares purchased, $2267.6400 is the price paid per share (in $C, surely as a block trade), and 500,140 seems to be the cumulative number of shares repurchased within some period of time - is it 30 days? Or quarter to date? Where is this table coming from?

 

The 416,600 shares represent about 2% of shares outstanding, and the cumulative total of 500,140 is clearly higher than 2%.  I think they can exceed the 2% 30-day limit, not because they are buying them on another exchange (these are in $C so I presume they are on the TSX) but rather because that 2% clause only applies to investment funds, not insurance companies or conglomerates. The 2 limits that apply to Fairfax are the 5% of all outstanding shares in a year and the 25% of average daily volume, but with the latter rule not applying to block trades like the 416,600 shares purchased in the week before June 30 and filed on July 9.