Fairfax for the newbie

HumbleInvestor · January 25, 2013

Hello,

What do you think is the best "primer" to read in order to understand Fairfax?

I am referring to a summary \ Valuation model, before diving into the annual letters and reports.

Many Thanks!

Humble

giofranchi · January 25, 2013

Hello,

What do you think is the best "primer" to read in order to understand Fairfax?

I am referring to a summary \ Valuation model, before diving into the annual letters and reports.

Many Thanks!
Humble

I think you should download the 2012 AGM presentation from Fairfax website. Then, read all Mr. Watsa’s letters to shareholders: they are great, full of a lot of information both on Fairfax and on the insurance industry and the investment world in general. :)

giofranchi

January 25, 2013

Hello,

What do you think is the best "primer" to read in order to understand Fairfax?

I am referring to a summary \ Valuation model, before diving into the annual letters and reports.

Many Thanks!
Humble

I think you should download the 2012 AGM presentation from Fairfax website. Then, read all Mr. Watsas letters to shareholders: they are great, full of a lot of information both on Fairfax and on the insurance industry and the investment world in general. :)

giofranchi

Yes, the slide presentation @ the AGM from 2012 is as good a primer on FFH as any. If I had to tell the FFH story in a few words, the following "scream" from the presentation: Long term focus, Totally risk averse, Against-the-herd, International (emerging markets ie non-USA) insurance growth focus and investor friendliness(Like few others!).

One fact included in the presentation that blows me away is their bond portfolio performance (5 year- 13.3%; 10 year - 12.5%; 15 Years - 10.4%)! Shareholders need to appreciate the bond team lead by Brian Bradstreet for this, given the challenges faced by FFH especially during the last 10- and 15- year periods! IMO, this is unprecedented. Remember that >80% of the investment portfolio was invested in Fixed Income over this period, Equities have increased only since 2008. This defines the investment mindset @ FFH better than anything else.

A_Hamilton · January 25, 2013

Hello,

What do you think is the best "primer" to read in order to understand Fairfax?

I am referring to a summary \ Valuation model, before diving into the annual letters and reports.

Many Thanks!
Humble

I think you should download the 2012 AGM presentation from Fairfax website. Then, read all Mr. Watsa’s letters to shareholders: they are great, full of a lot of information both on Fairfax and on the insurance industry and the investment world in general. :)

giofranchi

Yes, the slide presentation @ the AGM from 2012 is as good a primer on FFH as any. If I had to tell the FFH story in a few words, the following "scream" from the presentation: Long term focus, Totally risk averse, Against-the-herd, International (emerging markets ie non-USA) insurance growth focus and investor friendliness(Like few others!).

One fact included in the presentation that blows me away is their bond portfolio performance (5 year- 13.3%; 10 year - 12.5%; 15 Years - 10.4%)! Shareholders need to appreciate the bond team lead by Brian Bradstreet for this, given the challenges faced by FFH especially during the last 10- and 15- year periods! IMO, this is unprecedented. Remember that >80% of the investment portfolio was invested in Fixed Income over this period, Equities have increased only since 2008. This defines the investment mindset @ FFH better than anything else.