Is it a sign of running out of ideas? Fairfax Financials’ Prem Watsa is buying into merger arbitrage deals, and sold a lot long term positions. This is the Q1 portfolio update of Fairfax Financial Holdings, Inc.
Prem Watsa has been called “Warren Buffett of Canada”. He saw opportunities in the financial crisis of 2008, and made a killing with CDO investments. Now he is selling a lot more than buying.
Prem Watsa buys Idearc Inc., International Absorbents, sells Burlington Northern Santa Fe Corp., Sun Microsystems, Inc. during the 3-months ended 03/31/2010, according to the most recent filings of his investment company, Fairfax Financial Holdings, Inc.. Prem Watsa owns 39 stocks with a total value of $3.2 billion. These are the details of the buys and sells.
This is the sector weightings of his portfolio:
These are the top 5 holdings of Prem Watsa
Zenith National Insurance Corp. is a holding company. Zenith National Insurance Corp. has a market cap of $1.32 billion; its shares were traded at around $37.9 with a P/E ratio of 199.47 and P/S ratio of 2.26. The dividend yield of Zenith National Insurance Corp. stocks is 5.28%.
Berkshire Hathaway Inc. is a holding company owning subsidiaries engaged in a number of diverse business activities. Berkshire Hathaway Inc. has a market cap of $188 billion; its shares were traded at around $114150 with a P/E ratio of 22 and P/S ratio of 1.8. Berkshire Hathaway Inc. had an annual average earning growth of 13.2% over the past 10 years. GuruFocus rated Berkshire Hathaway Inc. the business predictability rank of 2-star.
SuperMedia Inc., based in Dallas, Texas, is an advertising agency for local small to medium sized businesses across the United States. Idearc Inc. has a market cap of $567.94 million; its shares were traded at around $37.87 with and P/S ratio of 0.23.
INTERNATIONAL ABSORBENTS develops, manufactures and markets proprietary, cost-effective consumer and commercial products derived from recycled, renewable materials. International Absorbents has a market cap of $30.19 million; its shares were traded at around $4.71 with a P/E ratio of 19.63 and P/S ratio of 0.87.
Magna International, Inc. is an independent supplier of original equipment components, assemblies, modules and systems and related tooling for cars and light trucks. Magna International Inc. has a market cap of $8.26 billion; its shares were traded at around $73.84 with a P/E ratio of 76.92 and P/S ratio of 0.48.
LEUCADIA NATL is a diversified financial services holding companyprincipally engaged in personal and commercial lines of property and casualty insurance, life insurance, banking and lending and manufacturing. Leucadia National Corp. has a market cap of $5.68 billion; its shares were traded at around $23.34 with a P/E ratio of 6.73 and P/S ratio of 5.07.
U.S. Bancorp is a financial services holding company. U.s. Bancorp has a market cap of $48.86 billion; its shares were traded at around $25.51 with a P/E ratio of 24.07 and P/S ratio of 2.51. The dividend yield of U.s. Bancorp stocks is 0.78%. U.s. Bancorp had an annual average earning growth of 2.1% over the past 10 years.
General Electric is one of the largest and most diversified industrial corporations in the world. General Electric Company has a market cap of $188.22 billion; its shares were traded at around $17.64 with a P/E ratio of 16.04 and P/S ratio of 1.2. The dividend yield of General Electric Company stocks is 2.27%. General Electric Company had an annual average earning growth of 14.1% over the past 10 years. GuruFocus rated General Electric Company the business predictability rank of 4-star.
Dell Inc. is a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures. Dell Inc. has a market cap of $29.66 billion; its shares were traded at around $15.15 with a P/E ratio of 15.3 and P/S ratio of 0.56. Dell Inc. had an annual average earning growth of 4.1% over the past 10 years.
Wells Fargo & Company is a diversified financial services company providing banking, insurance, investments, mortgage and consumer finance services through stores, its Internet site and other distribution channels across North America as well as internationally. Wells Fargo & Company has a market cap of $166.23 billion; its shares were traded at around $32.04 with a P/E ratio of 18.41 and P/S ratio of 1.69. The dividend yield of Wells Fargo & Company stocks is 0.62%. Wells Fargo & Company had an annual average earning growth of 5.1% over the past 10 years.
Prem Watsa has been called “Warren Buffett of Canada”. He saw opportunities in the financial crisis of 2008, and made a killing with CDO investments. Now he is selling a lot more than buying.
Prem Watsa buys Idearc Inc., International Absorbents, sells Burlington Northern Santa Fe Corp., Sun Microsystems, Inc. during the 3-months ended 03/31/2010, according to the most recent filings of his investment company, Fairfax Financial Holdings, Inc.. Prem Watsa owns 39 stocks with a total value of $3.2 billion. These are the details of the buys and sells.
- New Purchases: IAX, SPMD,
- Added Positions: BRK.A, ZNT,
- Reduced Positions: DELL, GE, LUK, MGA, USB, WFC,
- Sold Out:
This is the sector weightings of his portfolio:
| Financials | 27.3% |
| Health Care | 14.2% |
| Industrials | 14.1% |
| Telecommunications | 11.6% |
| Technology | 11% |
| Consumer Goods | 10.3% |
| Basic Materials | 6.5% |
| Consumer Services | 3.1% |
| Oil & Gas | 1.6% |
These are the top 5 holdings of Prem Watsa
- Johnson & Johnson (JNJ) - 6,884,300 shares, 14.01% of the total portfolio.
- Wells Fargo & Company (WFC) - 14,074,100 shares, 13.65% of the total portfolio. Shares reduced by 29.78%
- Dell Inc. (DELL) - 23,117,389 shares, 10.83% of the total portfolio. Shares reduced by 33.5%
- General Electric Company (GE) - 17,387,770 shares, 9.87% of the total portfolio. Shares reduced by 34.63%
- Kraft Foods Inc. (KFT) - 9,949,871 shares, 9.39% of the total portfolio.
Added: Zenith National Insurance Corp. (ZNT, Financial)
Prem Watsa added to his holdings in Zenith National Insurance Corp. by 42.32%. His purchase prices were between $27.22 and $38.38, with an estimated average price of $33.26. The impact to his portfolio due to this purchase was 1.11%. His holdings were 3,118,441 shares as of 03/31/2010.Zenith National Insurance Corp. is a holding company. Zenith National Insurance Corp. has a market cap of $1.32 billion; its shares were traded at around $37.9 with a P/E ratio of 199.47 and P/S ratio of 2.26. The dividend yield of Zenith National Insurance Corp. stocks is 5.28%.
Added: Berkshire Hathaway Inc. (BRK.A, Financial)
Prem Watsa added to his holdings in Berkshire Hathaway Inc. by 50%. His purchase prices were between $97500 and $125000, with an estimated average price of $113488. The impact to his portfolio due to this purchase was 0.01%. His holdings were 6 shares as of 03/31/2010.Berkshire Hathaway Inc. is a holding company owning subsidiaries engaged in a number of diverse business activities. Berkshire Hathaway Inc. has a market cap of $188 billion; its shares were traded at around $114150 with a P/E ratio of 22 and P/S ratio of 1.8. Berkshire Hathaway Inc. had an annual average earning growth of 13.2% over the past 10 years. GuruFocus rated Berkshire Hathaway Inc. the business predictability rank of 2-star.
New Purchase: Idearc Inc. (SPMD, Financial)
Prem Watsa initiated holdings in Idearc Inc.. His purchase prices were between $34.04 and $100, with an estimated average price of $39.97. The impact to his portfolio due to this purchase was 0.46%. His holdings were 362,974 shares as of 03/31/2010.SuperMedia Inc., based in Dallas, Texas, is an advertising agency for local small to medium sized businesses across the United States. Idearc Inc. has a market cap of $567.94 million; its shares were traded at around $37.87 with and P/S ratio of 0.23.
New Purchase: International Absorbents (IAX, Financial)
Prem Watsa initiated holdings in International Absorbents. His purchase prices were between $4.5 and $4.7, with an estimated average price of $4.6. The impact to his portfolio due to this purchase was 0.01%. His holdings were 43,555 shares as of 03/31/2010.INTERNATIONAL ABSORBENTS develops, manufactures and markets proprietary, cost-effective consumer and commercial products derived from recycled, renewable materials. International Absorbents has a market cap of $30.19 million; its shares were traded at around $4.71 with a P/E ratio of 19.63 and P/S ratio of 0.87.
Reduced: Magna International Inc. (MGA, Financial)
Prem Watsa reduced to his holdings in Magna International Inc. by 99.9%. His sale prices were between $50.53 and $62.43, with an estimated average price of $57.75. The impact to his portfolio due to this sale was -0.01%. Prem Watsa still held 5,000 shares as of 03/31/2010.Magna International, Inc. is an independent supplier of original equipment components, assemblies, modules and systems and related tooling for cars and light trucks. Magna International Inc. has a market cap of $8.26 billion; its shares were traded at around $73.84 with a P/E ratio of 76.92 and P/S ratio of 0.48.
Reduced: Leucadia National Corp. (LUK, Financial)
Prem Watsa reduced to his holdings in Leucadia National Corp. by 93.04%. His sale prices were between $21.72 and $25.92, with an estimated average price of $24.18. The impact to his portfolio due to this sale was -0.02%. Prem Watsa still held 27,950 shares as of 03/31/2010.LEUCADIA NATL is a diversified financial services holding companyprincipally engaged in personal and commercial lines of property and casualty insurance, life insurance, banking and lending and manufacturing. Leucadia National Corp. has a market cap of $5.68 billion; its shares were traded at around $23.34 with a P/E ratio of 6.73 and P/S ratio of 5.07.
Reduced: U.s. Bancorp (USB, Financial)
Prem Watsa reduced to his holdings in U.s. Bancorp by 28.7%. His sale prices were between $22.45 and $26.25, with an estimated average price of $24.69. The impact to his portfolio due to this sale was -2.62%. Prem Watsa still held 11,306,800 shares as of 03/31/2010.U.S. Bancorp is a financial services holding company. U.s. Bancorp has a market cap of $48.86 billion; its shares were traded at around $25.51 with a P/E ratio of 24.07 and P/S ratio of 2.51. The dividend yield of U.s. Bancorp stocks is 0.78%. U.s. Bancorp had an annual average earning growth of 2.1% over the past 10 years.
Reduced: General Electric Company (GE, Financial)
Prem Watsa reduced to his holdings in General Electric Company by 34.63%. His sale prices were between $15.13 and $18.45, with an estimated average price of $16.54. The impact to his portfolio due to this sale was -3.42%. Prem Watsa still held 17,387,770 shares as of 03/31/2010.General Electric is one of the largest and most diversified industrial corporations in the world. General Electric Company has a market cap of $188.22 billion; its shares were traded at around $17.64 with a P/E ratio of 16.04 and P/S ratio of 1.2. The dividend yield of General Electric Company stocks is 2.27%. General Electric Company had an annual average earning growth of 14.1% over the past 10 years. GuruFocus rated General Electric Company the business predictability rank of 4-star.
Reduced: Dell Inc. (DELL, Financial)
Prem Watsa reduced to his holdings in Dell Inc. by 33.5%. His sale prices were between $12.9 and $15.22, with an estimated average price of $14.11. The impact to his portfolio due to this sale was -3.63%. Prem Watsa still held 23,117,389 shares as of 03/31/2010.Dell Inc. is a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures. Dell Inc. has a market cap of $29.66 billion; its shares were traded at around $15.15 with a P/E ratio of 15.3 and P/S ratio of 0.56. Dell Inc. had an annual average earning growth of 4.1% over the past 10 years.
Reduced: Wells Fargo & Company (WFC, Financial)
Prem Watsa reduced to his holdings in Wells Fargo & Company by 29.78%. His sale prices were between $26.43 and $31.22, with an estimated average price of $28.49. The impact to his portfolio due to this sale was -4.06%. Prem Watsa still held 14,074,100 shares as of 03/31/2010.Wells Fargo & Company is a diversified financial services company providing banking, insurance, investments, mortgage and consumer finance services through stores, its Internet site and other distribution channels across North America as well as internationally. Wells Fargo & Company has a market cap of $166.23 billion; its shares were traded at around $32.04 with a P/E ratio of 18.41 and P/S ratio of 1.69. The dividend yield of Wells Fargo & Company stocks is 0.62%. Wells Fargo & Company had an annual average earning growth of 5.1% over the past 10 years.
