Is Fairfax Financial Holdings (FFH.TO or FFXVF) another Berkshire?
I just read about this, potentially Berkshire-like, company on TSC:
thestreet.com
For those on this thread who knows Fairfax and Mr. Watsa well, please give us you opinion and experience.
The new thread on SI to discuss Fairfax is at:
Subject 27454
The web site for the company is at:
fairfax.ca
If you don't have access to TSC, here is part of that article:
5/5/99 6:07 PM ET
The Buffett North of the Border
by Jeff Bronchick
This is clearly Berkshire Hathaway (BRK.A:NYSE) week; witness TheStreet.com's own Chris Edmonds' excellent on-the-spot coverage. Since I have problems getting a decent table at Gorat's in Omaha, I have had to look elsewhere to invest my dollars, and in the process, may have stumbled upon a Buffett-like legend in the making.
It was while doing a little apres-skiing at the Post Hotel in Lake Louise, Canada, that I came across an article regarding the overflowing crowd at the annual meeting of Fairfax Financial Holdings (FFH:Toronto), based in Toronto.
Yes, Canadians love a free donut, just like we do south of the border, but food alone couldn't explain the unusual turnout for a mere annual meeting. The story also used the phrase "the Warren Buffett of Canada." That's a sure hook line, and I put a call into Fairfax asking for a financial packet the very next day. Within a week, I had received and consumed 13 years worth of annual reports.
What I found was unbelievable -- Mr. V. Prem Watsa, the founder and resident genius behind Fairfax, has put together a 13-year record that is so good, I am embarrassed as an investment professional not to have been aware of it. (Not to mention crying over not owning the stock!)
It turns out that, for the 13 years ended in December 1998, Mr. Watsa compounded his company's book value per share at a 41% annual rate. Putting that in perspective, Buffett and Munger have grown Berkshire's book value at 27.3% a year (true, they never sell, so book value reflects the portfolio's historical cost). And Fairfax stock has compounded at 48% annually, while the company's been earning an average return on equity of 20.4%. In fact, there are just one Canadian and two U.S. companies whose stock prices have compounded faster over these 13 years. Do I have your attention now?
....
again, see: thestreet.com
for the full article. |
