Today, Fairfax Financial Holdings (FRFHF) held annual shareholders' meeting. There are a few articles I found in the financial press, discussing Prem Watsa's latest thinking on investment opportunities:
1. Bloomberg: Fairfax's Watsa Recommends Wells Fargo, J&J, Kraft, US Bancorp Shares. Excerpt:
He recommended shares of Wells Fargo & Co. (WFC), Johnson & Johnson (JNJ), Kraft Foods Inc. (KFT) and US Bancorp. (USB) Fairfax owns a combined $1.9 billion in the four U.S. company shares.
“The underlying fundamentals are there for everyone to see, but it’s boring,” Watsa said. “No one wants to buy something that will take five, six years” to double in value.
2. Financial Post: Fairfox’s Watsa sees gloom, bets on deflation. Excerpt:
Where most economists see the green shoots of economic recovery, Mr. Watsa sees what could be a rather darker scenario akin to the malaise that hit Japan two decades ago, or North America during the Depression.
“Our worry is what happened in 2009 is a lot like what happened in the 30s,” he said.
3. canadianbusiness.com: Fairfax CEO wants to expand property insurance business in India when allowed.Excerpt:
The Canadian insurance and investment company currently has a 26 per cent stake in an Indian insurance business, which is in-line with the amount the government stipulates for foreign ownership.
However, Fairfax chief executive Prem Watsa said Wednesday that if India's government follows through with expectations that it will likely raise that cap to 49 per cent, Fairfax would jump at the opportunity.
If you have not done it yet, read Prem Watsa’s annual 2011 letter to shareholders here.