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Dowling & Partner's Slides On Fairfax


Parsad
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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!

 

 

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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?

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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!

 

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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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