Fairfax Financial: Canada's Hidden Gem
Welcome to the Newcomer Investor Channel, where we uncover the story behind great businesses and make investing accessible and fun for everyone! In this episode, I am joined by Asheef Lalani for an in-depth analysis of Fairfax! Please note, this conversation was recorded on November 4th. As a result, any references to specific future dates/events in the episode may refer to a time that has already passed. And remember that nothing here is financial advice Connect: Newcomer Investor on X: https://twitter.com/NewcomerInvest Newcomer Investor Email: iamthenewcomerinvestor@gmail.com Asheef on X: https://x.com/BrownMarubozu Episode Highlights: (0:00) - Intro (1:45) - Asheef’s career in finance (5:00) - Asheef’s investing style (7:50) - The evolution of markets (18:45) - Fairfax - what do they do? what is a p&c business? Who is Prem Watsa? What is the Fairfax culture? (27:20) - Fairfax’ largest stock: Eurobank (29:45) - Understanding Fairfax’ valuation and some of its “hidden” components (36:45) - Breaking down Fairfax’ insurance business (41:55) - Downside protection (47:27) - The float!!! (49:20) - Global diversification (53:25) - Fairfax India (1:05:20) - Book value - comparison with Intact (1:08:00) - genius move: Fairfax’ Total Return Swaps (1:12:50) - catalyst: Fairfax’ potential inclusion into the TSX 60 (1:19:00) - How all Fairfax segments come together (1:20:30) - Brookfield & Fairfax similarities (1:22:00) - Fairfax vs Fairfax India (1:26:00) - Fairfax Stock: Strathcona Resources (1:43:00) - Mako Mining and execution risks (1:47:00) - Fairfax recent acquisitions: Sleep Country Canada and Peak Achievement (1:58:45) - Fairfax stock’s exceptional return (2:00:00) - Stock splits (2:08:45) - Why some people choose to avoid Fairfax (and Brookfield!) (2:12:30) - How Prem treats people (2:17:00) - Asheef’s advice to investors