FFXDF. Finally looking at this one a little closer after your several mentions:
At June 30, 2018 common shareholders' equity was $2,056.2 million, or $13.26 per share, compared to $2,132.5 million, or $14.46 per share, at December 31, 2017, a decrease of 8.3% primarily related to unrealized foreign currency translation losses as a result of the weakening of the Indian rupee relative to the U.S. dollar.
The stock of this holding company is about $16.50 this morning. It's traded above $14.46 for almost all of this year. That's down somewhat from prior year due to market decline in one of the publicly held companies coupled with decline in rupee vs $. (Per FFXDF: "Please note that Fairfax India’s book value is based on publicly traded market value only for the three of its eight investments which are publicly traded (the rest are based on appraised values not too different from their cost".)
Maybe the high (imo) price over stated bv is a reflection of investors belief in Fairfax being able to successfully invest in Indian companies, and maybe Fairfax's assumed conservative valuation of the private companies it holds. (In 3/18 letter to shareholders, management notes: "...Book value per share, our key performance measure...")
I'll take a few starter shares here. Stockholder gets Fairfax's good management, presumed good managers in India running those few Indian companies that Fairfax has taken substantial positions in, and of course the assumed very good continuing growth of the Indian economy. I intend to add more shares as I become more comfortable with the bet here.
fairfax.ca |
