I think Fairfax will continue to be an outstanding compounding machine over a long period.They have planted so many seeds for growth of their float, and one continues to benefit from the implicit leverage from it. Given this leverage, the absolute returns on investments don't have to be that stellar to obtain 15%+ growth in BVPS. Having said that, I wish the management would stop making big bets on markets, inflation, etc. I do understand that they must preserve capital to preserve rating, and I further understand that their success betting against credit spreads was highly successful. My issue is that it clouds the question of what an investment in Fairfax represents. I love this company and its management, but I have avoided the stock for the last four years or so because I have been bullish, and I didn't like the net short equity position. Furthermore, I was concerned about deflation, but I figured that central banks would just print money to assure that it didn't happen. Even the ECB opened the spigot. If Prem and team could just buy great companies at reasonable prices, continue to invest and grow their insurance businesses, and continue their excellent underwriting results, I think the investment would be a no brainer. Despite these wishes, I bought the stock again in the last week because it's cheap, and its potential seems vast.
wow wrong all the time. Soo much for buffet. Also buffet never shorts. This guy is just building an empire so he can get rich by diluting the shares
Looks like we 'suck less' today
Watsa needs to stop diluting his shareholders. Buffet is scrupulous about protecting the interests of shareholders.