Prem Watsa (Trades, Portfolio), founder of the Canadian insurance conglomerate, Fairfax Financial (TSX:FFH), which models itself after Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway (BRK.A)(BRK.B), likes out-of-favor stocks. For instance, he took a stake in the reeling smartphone maker BlackBerry (BBRY) through 2011 and 2012 when the price tumbled to one-seventh of its average price in third quarter 2010. Watsa has also acknowledged that in 2012 he became interested in Greek banks, and in this 2015 annual letter, he outlined the extent of the positions in the struggling country.
The stocks were below Watsa’s cost as of early March when he released the letter, but "we expect them to do well over the long term,” he said. Continue Reading »