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Thanks


merkhet
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I spent the last week reading every post under Fairfax.

 

Like many investors, I'd previously had an aversion to insurance companies due to a lack of knowledge of the business, and the feeling that the balance sheet was a bit too opaque for me.  After reading all the associated posts under Fairfax, I feel like I've gotten stellar education in the business, and it's provided me with a great starting point to begin assessing insurance companies.

 

Just wanted to say thanks to all the posters on the board.

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Agree with above.

 

A good quote that I have saved on why to invest in FFH (which I don t know if it was in any of the posts you read):

 

 

"a hedge fund manager makes money by taking 20% of the profits on the money he invests for his clients. An insurance business is almost the same model with two small differences:

- an insurance company takes 100% of the profits on the money they invest

- the customers of an insurance company never want to get their money back (as opposed to a hedge fund where ultimately you have to return the money to your investors). People hand their money over every month and pray they never get sick enough to warrant getting that money back. The insurance company gets to hold onto the money as long as possible and take all the profits it makes by investing that money.

Insurance companies are enormous regulated hedge funds with much greater potential for immense profits."

 

+ Prem & Co have great track record with capital allocation/investment

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I want to add my thanks too. I am usually a lurker on this board and have posted occasionally.

 

I would have never looked at FFH, but for this board. Ofcourse i am cursing myself for taking so long to do that, although i have been around since for sometime now.

 

the more i read about the company, the more i am impressed by prem watsa and his company.

 

the only downside is that once you invest with an FFH or BRK, your expectations from a CEO are raised high and the irritation  goes up when you see other CEO's falling way short

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