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
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Newcomer Investor on X: https://twitter.com/NewcomerInvest
Newcomer Investor Email: iamthenewcomerinvestor@gmail.com
Asheef on X:
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