GAM: FFH Not Hunting For Aquisitions

[Viking]

Globe & Mail: www.theglobeandmail.com/globe-investor/fairfax-not-hunting-for-acquisitions-watsa/article1543428/

[Uccmal]

A few things really struck me this time:

 

FFHs record on bond investment:  ~11% over 20 years; bond index ~6%; mind blowing.  This group are about the best bond investors in existence.  5 billion in tax exempt partially insured munis.  They even got California to agree to a no-call feature on their government bonds.  

 

The conviction of Prem that they are going to keep cash levels very high forever.

 

The conviction of the CEO's to wait out the soft market rather than price competing.

 

The worldwide expansion.  I am particularly interested in the wholly owned Brazilian, and Polish companies, and also the sheer size of the available market in India.

 

Interesting meeting.

 

 

[Munger_Disciple]

Any notes of the meeting?

[FFHWatcher]

Keep in the mind that the $2B gains from CDS's and the money made from hedging are not counted anywhere in their equity or bond performance numbers (I believe).  I am guessing that $2B here and there would really pop the long term numbers!!  They aren't sure where to put them so they leave them un-categorized.

[Guest longinvestor]

A few things really struck me this time:

 

FFHs record on bond investment:  ~11% over 20 years; bond index ~6%; mind blowing.  This group are about the best bond investors in existence.  5 billion in tax exempt partially insured munis.  They even got California to agree to a no-call feature on their government bonds.  

Interesting meeting.

 

The bond desk is Brian Bradstreet and Enza LaSilva....two person team. Best bond investors in existence indeed!