Fairfax 2026

[yesman182]

9 hours ago, djokovic1 said:

This was the presentation that I used last week that has my thoughts on valuation, book value, ROE amongst other stuff. I find ROE and P/E most useful (especially as Fairfax earnings power has become much more stable).

 

Book value is an additional data point and quick way to compare insurers. However an insurer trading at 1x book earning 8% ROE is much more expensive than an insurer trading at 1x book earning 20% ROE. Which will be captured in the PE multiple (i.e the second business will be trading at a much lower PE).



 

Fairfax_Pitch_final_P&R_VIS.pdf 3.48 MB · 80 downloads

Is the valuation framework you laid out on page 14 the framework Markel laid out in last years annual report? 
 

i hope your investors do well! 

[djokovic1]

3 hours ago, yesman182 said:

Is the valuation framework you laid out on page 14 the framework Markel laid out in last years annual report? 
 

i hope your investors do well! 

thanks! Yes it is. It also uses 2025 YE numbers for all companies so the discount for Fairfax and Markel today will be larger than what’s shown there and Berkshire is likely also at a small discount. Because income statement and balance sheet for all is larger than at YE 25.

Edited 6 hours ago by djokovic1

[TG]

3 hours ago, djokovic1 said:

thanks! Yes it is. It also uses 2025 YE numbers for all companies so the discount for Fairfax and Markel today will be larger than what’s shown there and Berkshire is likely also at a small discount. Because income statement and balance sheet for all is larger than at YE 25.

Insightful report, thank you! Recently read a quite exenstive report doing a deep dive and breakdown of Markel - coming out at more or less the same discount. Next to BRK and FFH, MKL is quite the weight in my portfolio so I genuinely hope management ups the ante with the buybacks at these valuations. I don't expect them to be as opportunistic as FFH, but still. I like the general set up of these three names over time, with FFH probably being the powerhouse whereas MKL and BRK I'd say still about 10+%-ish returns (hopefully MKL a bit more though).