Fairfax 2026

[djokovic1]

50 minutes ago, Marco Van Basten said:

Where are you getting average annual fixed income return = 4.2% over the past 40 years?  That seems extraordinarily low.  Even AI claims it averaged 4.61% for a 5 year treasury.  Given that Fairfax seems to have bought corporate debt and mortgages, my guess is that the return on the fixed income portfolio was north of 6% per annum over the past 40 years.  

Do you have a more accurate number? Where does the 6% come from precisely? Even if 5 year bond yields average 4.5% over the last 40 years, Fairfax has always run much shorter duration than that. How do you factor that in to your analysis?

 

Btw, even with your 6% assumption the equity returns are 12%+ which beats the S&P over 40 years.....can't argue with that?

 

 

47 minutes ago, Marco Van Basten said:

f we assume that those returns are indeed correct, then why didn't Fairfax raised a twenty billion or forty billion hedge fund from endowments and ran it with the incentive and management fee going to the company?

 

Why didn't Buffett do this?

Edited 1 hour ago by djokovic1