Fairfax Financial CEO: BlackBerry Is The 'Only' Phone To Use
Fairfax Financial Holdings CEO Prem Watsa said in a Financial Post interview that BlackBerry Ltd (NASDAQ: BBRY) is the "only" smartphone "you should use for heaven's sake." Fairfax Financial holds more than 9 percent of BlackBerry stock at an average price in 2012 of $17.
The stock recently traded at $9.92, down 1 percent.
Watsa also said that BlackBerry's smartphone was "beautiful."
"This is safer, it's got a 24-hour battery, and a beautiful screen," Watsa said. Fairfax Financial led a bid for BlackBerry back in 2013, bidding $4.7 billion. However, the letter of intent did not have a financing component, and Fairfax was unable to make a deal. At current prices, BlackBerry's market capitalization is $5.3 billion.
Watsa was asked why his firm, known for value-oriented strategies, put money into BlackBerry. He said, "These things go in cycles," adding that "BlackBerry used to be $140 (a share). Every stock analyst loved it. Today it's $10. Few stock analysts like it." Conversely, Watsa pointed to Apple Inc. (NASDAQ: AAPL) as a point in how companies can move in the opposite direction.
"You have to remember that the business flows up and down," he said.
BlackBerry, International Business Machines Corp. (NYSE: IBM) and Resolute Forest Products Inc (NYSE: RFP) account for 76 percent of Fairfax Financial's U.S. equity exposure, according to a recent regulatory filing.
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