The founder of Fairfax Financial Prem Watsa, oftentimes called the “Warren Buffett of Canada,” maintained a rather quiet second quarter, posting three small new buys. Over the past quarter, Prem Watsa increased his positions in four companies.
The Canadian favorite now boasts a portfolio of 41 stocks valued at nearly $2.5 billion.
Prem Watsa’s Q2 Increases
Merck & Co. (MRK)
Watsa increased his holdings in Merck by 50% over the past quarter, purchasing a total 4,000 shares of the company’s stock. Watsa purchased these shares in the second quarter price range of $44.35 to $49.44, with an estimated average price of $46.81. Since then the price per share has increased approximately 2.5%.
Watsa now holds on to 12,000 shares of Merck & Co., representing 0.022% of his total portfolio. This is the first change Watsa has made to his position in Merck since he bought into the company in 2009. Watsa’s holding history as of the second quarter:
Merck & Co. is a global research-driven pharmaceutical company that discovers, develops, manufactures and markets a range of innovative products to improve human and animal health.
Merck’s historical revenue and net income:
The Peter Lynch Chart suggests that the company is currently overvalued:
Merck & Co. has a market cap of $140.38 billion. Its shares are currently trading at around $47.97 with a P/E ratio of 28.60, a P/S ratio of 3.30 and a P/B ratio of 3.10. The company had an annual average earnings growth of 7.5% over the past five years.
New York Times Company (NYT)
During the second quarter Watsa upped his stake in the New York Times by 40%. The guru purchased a total of 20,000 shares in the second quarter price range of $8.73 to $11.06, with an estimated average price of $9.83. The share price has since then increased approximately 18.1%.
As of the second quarter Watsa held 70,000 shares of the New York Times, representing 0.05% of the company’s shares outstanding and 0.031% of his total portfolio.
Watsa’s holding history as of the second quarter:
The company is a global, multimedia news and information company that currently includes newspapers, digital businesses, investments in paper mills and other investments.
New York Times’ historical revenue and net income:
The Peter Lynch Chart suggests that the company is currently undervalued:
The New York Times has a market cap of $1.73 billion. Its shares are currently trading at around $11.56 with a P/E ratio of 13.20, a P/S ratio of 0.90 and a P/B ratio of 2.60. The company had an annual average earnings growth of 12% over the past five years.
Resolute Forest Products (RFP)
Watsa also made an increase in his third largest position, Resolute Forest Products. The guru increased his holdings 16.87% by purchasing 4,180,808 shares of the company’s stock. He bought these shares in the second quarter price range of $12.70 to $16.49, with an estimated average price of $14.88. The price per share has since then dropped approximately 12%.
Watsa held a total of 28,957,327 shares of Resolute Forest Products as of the close of the second quarter, representing 30.56% of the company’s shares outstanding and 15.3% of his total portfolio.
Watsa’s holding history as of the second quarter:
Resolute Forest Products provides a diverse range of products, including newsprint, commercial printing papers, market pulp and wood products.
Resolute Forest Products’ historical revenue and net income:
Resolute Forest Products has a market cap of $1.24 billion. Its shares are currently trading at around $13.04 with a P/E ratio of 46.00, a P/S ratio of 0.30 and a P/B ratio of 0.50.
Berkshire Hathaway (BRK.B)
Watsa made his smallest increase of the quarter in Berkshire Hathaway. The guru increased his holdings 4.98% by adding 1,000 shares to his stake. Watsa bought these shares in the second quarter price range of $103 to $115.31, with an estimated average price of $110.02. The price per share has increased approximately 4.5% since then.
Watsa held 21,100 shares of BRK.B as of the end of the second quarter, representing a minor 0.095% of his total portfolio.
Watsa’s holding history as of the second quarter:
The company is a holding company owning subsidiaries engaged in a number of diverse business activities, including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, service and retailing.
Berkshire Hathaway’s historical revenue and net income:
The Peter Lynch Chart suggests that Berkshire Hathaway is currently overvalued:
Berkshire Hathaway has a market cap of $268.31 billion. Its shares are currently trading at around $114.80 with a P/E ratio of 15.10, a P/S ratio of 1.50 and a P/B ratio of 1.30. The company had an annual average earnings growth of 7.8% over the past 10 years.
GuruFocus rated Berkshire Hathaway the business predictability rank of 3-star.
Check out Prem Watsa’s second quarter portfolio here.
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The Canadian favorite now boasts a portfolio of 41 stocks valued at nearly $2.5 billion.
Prem Watsa’s Q2 Increases
Merck & Co. (MRK)
Watsa increased his holdings in Merck by 50% over the past quarter, purchasing a total 4,000 shares of the company’s stock. Watsa purchased these shares in the second quarter price range of $44.35 to $49.44, with an estimated average price of $46.81. Since then the price per share has increased approximately 2.5%.
Watsa now holds on to 12,000 shares of Merck & Co., representing 0.022% of his total portfolio. This is the first change Watsa has made to his position in Merck since he bought into the company in 2009. Watsa’s holding history as of the second quarter:
Merck & Co. is a global research-driven pharmaceutical company that discovers, develops, manufactures and markets a range of innovative products to improve human and animal health.
Merck’s historical revenue and net income:
The Peter Lynch Chart suggests that the company is currently overvalued:
Merck & Co. has a market cap of $140.38 billion. Its shares are currently trading at around $47.97 with a P/E ratio of 28.60, a P/S ratio of 3.30 and a P/B ratio of 3.10. The company had an annual average earnings growth of 7.5% over the past five years.
New York Times Company (NYT)
During the second quarter Watsa upped his stake in the New York Times by 40%. The guru purchased a total of 20,000 shares in the second quarter price range of $8.73 to $11.06, with an estimated average price of $9.83. The share price has since then increased approximately 18.1%.
As of the second quarter Watsa held 70,000 shares of the New York Times, representing 0.05% of the company’s shares outstanding and 0.031% of his total portfolio.
Watsa’s holding history as of the second quarter:
The company is a global, multimedia news and information company that currently includes newspapers, digital businesses, investments in paper mills and other investments.
New York Times’ historical revenue and net income:
The Peter Lynch Chart suggests that the company is currently undervalued:
The New York Times has a market cap of $1.73 billion. Its shares are currently trading at around $11.56 with a P/E ratio of 13.20, a P/S ratio of 0.90 and a P/B ratio of 2.60. The company had an annual average earnings growth of 12% over the past five years.
Resolute Forest Products (RFP)
Watsa also made an increase in his third largest position, Resolute Forest Products. The guru increased his holdings 16.87% by purchasing 4,180,808 shares of the company’s stock. He bought these shares in the second quarter price range of $12.70 to $16.49, with an estimated average price of $14.88. The price per share has since then dropped approximately 12%.
Watsa held a total of 28,957,327 shares of Resolute Forest Products as of the close of the second quarter, representing 30.56% of the company’s shares outstanding and 15.3% of his total portfolio.
Watsa’s holding history as of the second quarter:
Resolute Forest Products provides a diverse range of products, including newsprint, commercial printing papers, market pulp and wood products.
Resolute Forest Products’ historical revenue and net income:
Resolute Forest Products has a market cap of $1.24 billion. Its shares are currently trading at around $13.04 with a P/E ratio of 46.00, a P/S ratio of 0.30 and a P/B ratio of 0.50.
Berkshire Hathaway (BRK.B)
Watsa made his smallest increase of the quarter in Berkshire Hathaway. The guru increased his holdings 4.98% by adding 1,000 shares to his stake. Watsa bought these shares in the second quarter price range of $103 to $115.31, with an estimated average price of $110.02. The price per share has increased approximately 4.5% since then.
Watsa held 21,100 shares of BRK.B as of the end of the second quarter, representing a minor 0.095% of his total portfolio.
Watsa’s holding history as of the second quarter:
The company is a holding company owning subsidiaries engaged in a number of diverse business activities, including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, service and retailing.
Berkshire Hathaway’s historical revenue and net income:
The Peter Lynch Chart suggests that Berkshire Hathaway is currently overvalued:
Berkshire Hathaway has a market cap of $268.31 billion. Its shares are currently trading at around $114.80 with a P/E ratio of 15.10, a P/S ratio of 1.50 and a P/B ratio of 1.30. The company had an annual average earnings growth of 7.8% over the past 10 years.
GuruFocus rated Berkshire Hathaway the business predictability rank of 3-star.
Check out Prem Watsa’s second quarter portfolio here.
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