Fairfax 2026

[Txvestor]

3 hours ago, 73 Reds said:

Sure, we would expect Fairfax's equity investments to outperform the S&P 500.  Still do.  All of us here share the same expectation (otherwise, the index is easy to buy and hold).  But that doesn't really address the question.  We often like to compare Fairfax to Berkshire; Buffett didn't shy away from investments just because they were popular or widely held, some of which have made for excellent long term holdings.  Just don't see why some obvious (even to me) great companies from the last 20 or 30 years never crossed their radar screens.  

I don't know about you, but I am not invested in Fairfax because I have some great conviction that they will beat the index. In fact purely based on their equity investments over the last 17 years that I have been observing the company I would have to say my confidence is pretty measured in this regard. 50/50 at best. 
My reason for being invested is that I believe in the integrity of its leadership and love the way the company is structured. I believe the quality of their Insurance side is now underrated, I like the leverage that a float of that size gives them, I think their bond team is stellar, and I like their international exposure. As long as they don't completely suck on the equity side, we should do reasonably well. 
As you saw in one of the earlier posts by Viking about the lost decade, they still managed annual returns of 4% despite crappy equity investing and low interest rates. If that's the extent of the downside scenario, sign me up. 

Edited 1 hour ago by Txvestor

[Viking]

11 minutes ago, Txvestor said:

A good review of arguably the period I felt most pessimistic ever about Fairfax.
All while markets were ripping higher year after year. 
Perhaps it felt slightly outside of your time window, I don't recollect the exact dates but another peach was Sandridge energy which was built into an almost 60M share 10% position. I believe Prem even brought the since disgraced Tom Ward to one of the AGMs. Soon after he was fired by the board and eventually the company declared bankruptcy in 2016. 
 

One of the things that used to drive me a little crazy with Prem was his constant praising of every CEO - even the ones who were clearly terrible. It made him look like a dummy. 
 

Fast forward to today… he has toned it down. And his collection of CEO’s are much higher calibre. I love it.