Parsad Posted July 8, 2010 Posted July 8, 2010 Here are a couple of very good slides showing Fairfax's "return on investment" and the "relationship between growth in book value and stock price". The slides were produced by Dowling & Partners. Cheers!
Dorsia1 Posted July 8, 2010 Posted July 8, 2010 Thanks for this Sanjeev. It's always great to see anything that has to do with FFH. Very much appreciated.
beerbaron Posted July 9, 2010 Posted July 9, 2010 Would be happy to see AIG pre-crisis in that chart... BeerBaron
twacowfca Posted July 9, 2010 Posted July 9, 2010 Thanks, Sanjeev, for the graphs. Please note that the second graph displays growth in TBV, not TBV/SH. FFH's growth in TBV/SH for 25 years was 17%+, not 26% as shown on the graph. :). Do they also have a graph for growth in TBV/SH for the same cos?
Parsad Posted July 9, 2010 Author Posted July 9, 2010 FFH's growth in TBV/SH for 25 years was 17%+, not 26% as shown on the graph. According to the 2009 Shareholder's Letter, Prem said: In 1985, we began with $30 million in assets and $7.6 million in common equity.We ended 2009, 24 years later, with $28 billion in assets and $7.4 billion in common equity – almost 1,000 times higher than when we began. More importantly, since inception, book value per share has compounded by 26% per year, while our common stock price has followed at 22% per year. Not sure where you got the 17% from? Are you including the shares issued for ORH? Cheers!
twacowfca Posted July 10, 2010 Posted July 10, 2010 FFH's growth in TBV/SH for 25 years was 17%+, not 26% as shown on the graph. According to the 2009 Shareholder's Letter, Prem said: In 1985, we began with $30 million in assets and $7.6 million in common equity.We ended 2009, 24 years later, with $28 billion in assets and $7.4 billion in common equity – almost 1,000 times higher than when we began. More importantly, since inception, book value per share has compounded by 26% per year, while our common stock price has followed at 22% per year. Not sure where you got the 17% from? Are you including the shares issued for ORH? Cheers! My bad. I was thinking about the 15 year growth rate in BV/SH which is actually closer to 18% than 17%.
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