$354.45
-0.35 (-0.10%)
Fairfax Financial Holdings Limited (USA) (FFH)
CAPS Rating:
A financial services holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance, investment management and insurance claims management.
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Extremely cheap at these levels. Unlike the other BRK wanna-be's (BAM, LUK, and others). FFH actually has shareholder VALUE. With share buybacks, 3+% rising dividend (6% payout ratio), below book value, 1/2 price to sales, and trades for less than 5 times trailing earnings. This is a Buffet play for sure. This Toronto insurance company is a great asset allocator and has a fantastic CEO, Prem Watsa. Some refer to him as the Canadian Warren Buffet. He was one of the few investors that bet against the housing bubble. He made billions by buying credit default swaps that would rise in value as other companies creditworthiness deteriorated. FFH continues operations expanding globally, with subsidiaries in Asia and central Europe. With a 23% average return over the last few years (yes, even in 2008!!), this is definitely a buy and hold stock at these levels.
Fairfax is a big boy stock for big boy investors. Investors that understand that it can be worth trading short term volatility for long term profits, a bumpy 15% is far better than a steady 12.