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Interview with Sanjeev and Prem Watsa


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"famous and talented investors such as Prem Watsa (CEO of Fairfax Financials, "The Warren Buffett of the North") and Sanjeev Parsad (Founder of Corner Market Capital) to invest in the"

 

Balla. 8)

 

Sanjeev needs a nom de guerre.

 

"famous and talented investors such as Prem Watsa (CEO of Fairfax Financials, "The Warren Buffett of the North") and Sanjeev Parsad (Founder of Corner Market Capital, "The Hoover of Vancouver") to invest in the"

 

 

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Thanks.

 

Maybe BB's security was a moat a few years ago, now it probably only attracts CIO's etc who don't have a clue about securing their androids and iphones. As far as I've read, securing those last two is no problem these days. Or is the extra cost involved that high?

 

If BB has anything going for it, it's the keyboard on the Q10 and other future phones. Plenty of people just prefer a real keyboard.

 

I also don't get Prem's argument on the future growth of the smartphones market. Isn't this something like the growth in airlines etc in the past? While the growth has been huge, most of the industry has suffered a great deal. He might be right in the shorter term, but won't most players get crushed by the fierce competition over the long term? Why will BB be a winner with only 5% of the market in it's hands? What will be the moat that keeps margins high enough in a few years? Or is Prem just convinced of the turnaround, likely followed by it's ultimate decline in xx years?

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"famous and talented investors such as Prem Watsa (CEO of Fairfax Financials, "The Warren Buffett of the North") and Sanjeev Parsad (Founder of Corner Market Capital) to invest in the"

 

Balla. 8)

 

Sanjeev needs a nom de guerre.

 

"famous and talented investors such as Prem Watsa (CEO of Fairfax Financials, "The Warren Buffett of the North") and Sanjeev Parsad (Founder of Corner Market Capital, "The Hoover of Vancouver") to invest in the"

 

In time, Eric. In time. ;)  :D

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The disconnect between where the market is pricing SD and Sanjeev/Watsa's forecast that SD will be sold is quite fascinating - usually the market is rather efficient with pricing potential takeouts as such. SD is being priced like the dogshat independent E&P it is. It originally ran up in anticipation of exactly this scenario of TPG taking over the BOD, and now that it is happened the market has no interest.

 

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I am skeptical that Prem actually put a number on his estimate of intrinsic value.  I have never heard him be so precise about an assessment - it is usually statements like "may be much higher", "could be worth 2 to 3 times more"....  He always prefaces his estimate with a may be or could be and in fact flat out answered a question at the annual meeting with " you have to calculate that yourself"

 

 

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Am I mistaken or did wellmont post a reply on my post concerning BBRY? Or was it valueinv? Anyway, it's gone now and am wondering what happened to it.

 

 

On another note, can someone explain me Prem's opinion on commodities versus his holdings like SD? He posted a commodities list again this year in his annual letter; oil was included. How does this compare to his position in SD? Is it a hedge of his hedge (best value in oil/NG coupled with hedged production)? Or does he see significant value in NG despite his expectation of lower oil prices when the sh*t hits the fan? TIA.

 

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Am I mistaken or did wellmont post a reply on my post concerning BBRY? Or was it valueinv? Anyway, it's gone now and am wondering what happened to it.

 

 

On another note, can someone explain me Prem's opinion on commodities versus his holdings like SD? He posted a commodities list again this year in his annual letter; oil was included. How does this compare to his position in SD? Is it a hedge of his hedge (best value in oil/NG coupled with hedged production)? Or does he see significant value in NG despite his expectation of lower oil prices when the sh*t hits the fan? TIA.

 

From his comments on TW, I'm guessing it was a bet on Tom, as well as the fact that there is a discrepancy in thermal unit value of North American gas relative to all other forms of energy.  Cheers!

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