Fairfax Financial (FFH.to) Message Board

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Gold/Mining/Energy : Fairfax Financial (FFH.to)

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To: re3 who wrote ()	5/10/1999 1:43:00 PM
From: FACTUAL	Read Replies (1) of 36

The stock is unusual in that its ( largely fixed income ) investments alone should bring in about $50/share. The insurance operations are a total disaster though with combined ratios well over 100, in some cases near 140! It would appear that they are trying to maximize float at any combined ratio and thus are issuing stock above book to purchase other insurance companies. Furthermore the company does gamble on the direction of the market by buying puts ( currently worthless ). Purchase of this stock is a gamble that their insurance operations will achieve a combined ratio of 105 ( some of their subsidiaries have done so ) and management will stop gambling in the direction of the US market which they do not seem to understand. I own a modest amount of these shares as a speculation not an investment.

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