Fairfax Financial Holdings Limited (USA) (NASDAQOTH:FRFHF.PK)
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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Good insurance underwriting and excellent investing come together to make this an excellent long run growth engine. The insurance market is hardening and future investment returns, although bumpy in the short term, should look very good. I expect book value per share growth of around 10-15% and a future price to book higher than current 0.90x.