Mega Brands is Back From The Brink

[Parsad]

Article about Fairfax investment "Mega Brands" and their comeback.  CEO, Marc Bertrand, was one of the guests Prem brought to our dinner in April.

 

http://www.theglobeandmail.com/globe-investor/investment-ideas/mega-brands-is-back-from-the-brink-but-few-are-noticing/article2155389/

 

Interestingly enough, the article is written by Fabrice Taylor, who wrote several negative and poorly researched articles about Fairfax between 2003 and 2006.  Perhaps, he still hasn't noticed that Fairfax is also back from the brink!  Cheers!

 

[Ben Graham]

 

    Is Fairfax Financial a better value than Berkshire?

 

Fairfax Financial is the best stealth dividend stock in the world

 

Using the Tilson method Fairfax’s intrinsic value would be just the book value of their per share investments. As of the end of 2010, that number is $1,139 in investments per share. With Fairfax trading at $385 that would make the company a screaming value and a better one than Berkshire.

 

This entry was posted on Friday, June 24th, 2011

http://investingforaliving.wordpress.com/2011/06/24/is-fairfax-financial-a-better-value-than-berkhsire/

 

 

In summary, both Berkshire and Fairfax are compelling values today. Both companies trade at significant discounts to history and to intrinsic value calculations. However, in a head to head comparison Fairfax Financial is a better value.

[Shane]

Ben - Fairfax has much more long-term debt than berkshire.  Wouldn't you have to factor that into your calculation of intrinsic value?