Prem Watsa

Prem Watsa

Last Update: 12-22-2015

Number of Stocks: 40
Number of New Stocks: 3

Total Value: $1,082 Mil
Q/Q Turnover: 1%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Prem Watsa' s Profile & Performance

Profile

Prem Watsa was born on Aug. 5, 1950. His parents were originally from the small Christian community in southern city of Mangalore.

Studied at the Indian Institute of Technology, major in chemical engineering.

On Sept. 11, 1972, Prem Watsa arrived in London, Ontario, with $8 in his pocket and a $600 draft toward the first year's tuition.

Attend the MBA program at what later became the Ivey Business School at the Univesrity of Western Ontario.

Arrived at his first job Confederation Life in 1974. John Watson, the director of research handed him a book "Security Analysis". "

1985: met Francis Chou, then working as a telephone technician at Bell Canada. One day, Francis asked Prem almost casually, "Do you know how Warren Buffett made his money?" Prem thought he knew the answer, but Francis pointed to something he hadn't noticed: insurance float.

Met Steve Markel and set down the terms to buy Markel Financial for $5 million.

1986: Markel Financial was renamed Fairfax Financial. It means "fair, friendly acquisitions".

Book value per share grew from $1.52 in 1985 to $10.5 in 1989, which then grew to $38.89 in 1995.

Made series acquisitions, asset reaches billions.

Fairfax was listed on NYSE in 2002.

Attacked by hedge fund shorts including Jim Chanos, Whitney Tilson etc. Stock price down 40% to Cdn$57.

Regarding to shorts, Prem said, "Our one major worry, was that people would no longer deal with us. It never used to be that way, but now everybody looks at the stock price to get a sense in confidence in a company."

Filed lawsuit against shorts in 2006.

Buy CDS. "We bought our first (CDS) contract in 2003 and our last ones in December 2007. We just keep buying more and more, first five-year, then sever-year, because they were so cheap..." At one investment committee meeting where pre asked, "What's the best idea we've got?" Francis Chou, who's a pretty shy guy, piped up, "buy more credit default insurance." In the fall of 2008, Fairfax started to sell its CDS. The company made about $2 billion from those sales.

Removed its hedge in 2009.

90% hedged as September, 2011.

Prem Watsa Quotes:

"Being an immigrant, you develop qualities you never thought you had, you do things you never thought you'd do. You work harder, because you're at the bottom and the only way is up. I consider my kids less fortunate for not having had the immigrant experience."

"Warren Buffett attributes his success to Ben Graham's work, and in a smaller way, it is the same for me and hundreds of people who've made it as investors. You read that book and wither you get what it's saying in a smap or you never get it. For me it was so simple and made so much sense, I thought I had died and gone to heaven. It was my 'road to Damascus' moment."

This is by Tony Hamblin, Prem Watsa's partner in starting his investment firm: "It doesn't take a lot of money to start up an investment conselling company. The cost of entry is qualitative. You need to have a track record, contacts and credibility, and fortunately Prem and I had all three.

"Our long-term view has also meant that we have a commitment not to sell our core companies, no matter how attractive the price."

"Anything in the world is possible," as Ronald Regan used to say, "If you don't care who gets the credit."

Having shaken hands on an acquisition, we've never walked away from a commitment or gone back to change the deal.

"Work as hard as you can, as though everything depended on you"

Web Page:http://fairfax.ca/

Total Holding History

Performance of Fairfax Per Share Book Value

YearReturn (%)S&P500 (%)Excess Gain (%)
201419.513.695.8
2013-7.832.39-40.2
20126.516-9.5
3-Year Cumulative17.3 (5.5%/year)74.6 (20.4%/year)-57.3 (-14.9%/year)
201102.11-2.1
2010515.06-10.1
5-Year Cumulative23.2 (4.3%/year)105.1 (15.5%/year)-81.9 (-11.2%/year)
20093526.468.5
200821-3758.0
200748.75.4943.2
20069.215.79-6.6
2005-184.91-22.9
10-Year Cumulative168 (10.4%/year)109.4 (7.7%/year)58.6 (2.7%/year)
2004-4.110.88-15.0
200329.128.680.4
200211.2-22.133.3
2001-12.2-11.89-0.3
20005-9.114.1
15-Year Cumulative240.1 (8.5%/year)86.4 (4.2%/year)153.7 (4.3%/year)
19993821.0417.0
19983028.581.4
19973633.362.6
19966322.9640.0
19952537.58-12.6
20-Year Cumulative1590.8 (15.2%/year)554.6 (9.8%/year)1036.2 (5.4%/year)
1994181.3216.7
19934210.0831.9
199217.62-6.6
19912430.47-6.5
199041-3.144.1
25-Year Cumulative4903 (16.9%/year)893.3 (9.6%/year)4009.7 (7.3%/year)
19892731.69-4.7
19883116.6114.4
1987485.142.9
198618018.6161.4

Top Ranked Articles

Prem Watsa Sells Polypore, Advent Software Canadian guru's largest divestitures in 3rd quarter
Fairfax was founded in 1985 by the present chairman and CEO Prem Watsa (Trades, Portfolio), and is headquartered in Toronto, Canada. The following are Watsa’s most heavily weighted trades during the third quarter. Read more...
Are Tech Stocks Prem Watsa Called ‘Speculative’ Worse at Close of Year? A look at where the companies stand at close of year
Prem Watsa (Trades, Portfolio) has a top holding in cell phone maker BlackBerry Ltd. (NASDAQ:BBRY), but early in 2015 he said many major companies of the high tech industry were in speculation territory. Read more...
Prem Watsa Buys Stock Buffett Sold, 2 Other Holdings Canada-based investor releases recent quarter portfolio update
Prem Watsa (Trades, Portfolio)’s Fairfax Financial Holdings, a Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B)-style insurance conglomerate with a stock portfolio, purchased three new stocks in the recent quarter, one of which is a former Warren Buffett (Trades, Portfolio) holding, he reported Friday. Read more...
IBM: A Stalwart With a 2% Yield and Strong Potential Why this tech stalwart owned by Warren Buffett is compelling at today's valuation
IBM (NYSE:IBM) offers system hardware, infrastructure software, outsourcing and systems integration services, all within the IT industry. The company operates a global network that stretches across 150-plus countries and generates over half of sales outside North America. Read more...
Prem Watsa's Best Performing Holdings Geeknet tops the list with a 141.30% return year to date
Prem Watsa (Trades, Portfolio), through his hedge fund Fairfax Financial Holdings, manages a portfolio composed of 49 stocks with a value of $1,364 million. Read more...
» More Prem Watsa Articles

Commentaries and Stories

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Prem Watsa Sells Polypore, Advent Software Canadian guru's largest divestitures in 3rd quarter Prem Watsa - Prem Watsa Sells Polypore, Advent Software
Fairfax was founded in 1985 by the present chairman and CEO Prem Watsa (Trades, Portfolio), and is headquartered in Toronto, Canada. The following are Watsa’s most heavily weighted trades during the third quarter. More...

  • Currently 4.00/5

Rating: 4.0/5 (3 votes)

Are Tech Stocks Prem Watsa Called ‘Speculative’ Worse at Close of Year? A look at where the companies stand at close of year Prem Watsa - Are Tech Stocks Prem Watsa Called ‘Speculative’ Worse At Close Of Year?
Prem Watsa (Trades, Portfolio) has a top holding in cell phone maker BlackBerry Ltd. (NASDAQ:BBRY), but early in 2015 he said many major companies of the high tech industry were in speculation territory. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Prem Watsa Buys Stock Buffett Sold, 2 Other Holdings Canada-based investor releases recent quarter portfolio update Prem Watsa - Prem Watsa Buys Stock Buffett Sold, 2 Other Holdings
Prem Watsa (Trades, Portfolio)’s Fairfax Financial Holdings, a Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B)-style insurance conglomerate with a stock portfolio, purchased three new stocks in the recent quarter, one of which is a former Warren Buffett (Trades, Portfolio) holding, he reported Friday. More...

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Rating: 2.0/5 (2 votes)

IBM: A Stalwart With a 2% Yield and Strong Potential Why this tech stalwart owned by Warren Buffett is compelling at today's valuation Warren Buffett, Prem Watsa - IBM: A Stalwart With A 2% Yield And Strong Potential
IBM (NYSE:IBM) offers system hardware, infrastructure software, outsourcing and systems integration services, all within the IT industry. The company operates a global network that stretches across 150-plus countries and generates over half of sales outside North America. More...

LONG, TECH,


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Prem Watsa's Best Performing Holdings Geeknet tops the list with a 141.30% return year to date Prem Watsa - Prem Watsa's Best Performing Holdings
Prem Watsa (Trades, Portfolio), through his hedge fund Fairfax Financial Holdings, manages a portfolio composed of 49 stocks with a value of $1,364 million. More...

  • Currently 4.00/5

Rating: 4.0/5 (1 vote)

Prem Watsa Bought Kennedy-Wilson, Cut Dresser-Rand in Second Quarter During second quarter he focused on buys rather than sales Prem Watsa,Ron Baron,Chuck Royce,David Abrams,Murr - Prem Watsa Bought Kennedy-Wilson, Cut Dresser-Rand In Second Quarter
Fairfax Financial Holdings Limited was founded in 1985 by the present chairman and chief executive officer, Prem Watsa (Trades, Portfolio). Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management. More...

Prem Watsa,portfolio


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Prem Watsa’s Key Portfolio Holdings On Sale for the Brave Prem Watsa - Prem Watsa’s Key Portfolio Holdings On Sale For The Brave
With this week’s pummeling of Eurobank Ergasias (OTCPK:EGFEY), the stock joins several other big positions in Prem Watsa (Trades, Portfolio)’s portfolio that have faced setbacks and are trading at half his purchase price or more. More...

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Prem Watsa Buys 8 Diverse New Holdings in Second Quarter Prem Watsa - Prem Watsa Buys 8 Diverse New Holdings In Second Quarter
Frequently dubbed “the Canadian Warren Buffett (Trades, Portfolio),” Prem Watsa (Trades, Portfolio), founder and CEO of Fairfax Financial Holdings (TSX:FFH), reported eight new stock purchases from a variety of industries for the second quarter. More...

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Prem Watsa's Worst Performing Stocks
Fairfax Financial Holdings Limited is a holding company whose corporate objective is to achieve a high rate of return on invested capital and build long term shareholder value. The company has been under Prem Watsa (Trades, Portfolio)'s management since September 1985. More...

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Hoisington Investment Management's Lacy Hunt On The Six Characteristics Of Over-Indebted Economies
Lacy Hunt manages $6 billion through Hoisington Investment Management. More...

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Prem Watsa Tells His Horatio Alger Story Prem Watsa - Prem Watsa Tells His Horatio Alger Story
Horatio Alger, the 19th century American author, was famous for his novels for children — Ragged Dick, Tattered Tom, Luck and Pluck, and Strive and Succeed — that shared a theme: with hard work and the right attitude comes prosperity. More...

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Prem Watsa Sells 2 Education Loan Companies Warren Buffett,Prem Watsa - Prem Watsa Sells 2 Education Loan Companies
During the first quarter, the “Canadian Warren Buffett (Trades, Portfolio)” Prem Watsa (Trades, Portfolio) sold off three of his holdings, two of which are in the education loan industry. More...

PREM WATSA, EDUCATION, NAVIENT, SLM


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Prem Watsa Buys All Oil and Gas Stocks in Q1 Prem Watsa - Prem Watsa Buys All Oil And Gas Stocks In Q1
Prem Watsa (Trades, Portfolio), known as the “Warren Buffett (Trades, Portfolio) of Canada” because he invests the float of his growing insurance conglomerate, Fairfax Financial (TSX:FFH), with similar principles, has released his first-quarter investing information. More...

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Rating: 4.0/5 (4 votes)

Prem Watsa Reports Major Positions in Greek Companies Prem Watsa - Prem Watsa Reports Major Positions In Greek Companies
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. More...

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Prem Watsa's Stock Buys and Sells of Q4 Prem Watsa - Prem Watsa's Stock Buys And Sells Of Q4
“Canadian Warren Buffett (Trades, Portfolio)” Prem Watsa (Trades, Portfolio) bought sparingly in the fourth quarter, as he saw “a disconnect between the financial markets and the underlying economic fundamentals,” he said in his third-quarter conference call. More...

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Prem Watsa Takes Activist Stake in Real Estate Company Prem Watsa - Prem Watsa Takes Activist Stake In Real Estate Company
Prem Watsa (Trades, Portfolio), considered the “Canadian Warren Buffett (Trades, Portfolio),” made a large increase in a small holding he has not touched in three years, according to GuruFocus Real Time Picks. More...

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Guru Stocks at 52-Week Lows: IBM, BBL, DCM, EC, MFG
According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows. More...

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Guru Stocks at 52-Week Lows: IBM, BBL, SAN, ABEV, RIO
According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows. More...

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Prem Watsa Buys IBM, Bally Technologies, Rayonier Advanced Materials, Sells Idenix Pharmaceuticals, Questcor Pharmaceuticals, Susser Holdings Prem Watsa - Prem Watsa Buys IBM, Bally Technologies, Rayonier Advanced Materials, Sells Idenix Pharmaceuticals, Questcor Pharmaceuticals, Susser Holdings
Prem Watsa (Trades, Portfolio) Buys IBM, Bally Technologies, Rayonier Advanced Materials, Sells Idenix Pharmaceuticals, Questcor Pharmaceuticals, Susser Holdings More...

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Rating: 5.0/5 (1 vote)

Fairfax Financial Earning Call Opening Statements Prem Watsa - Fairfax Financial Earning Call Opening Statements
Fairfax Financial (FRFHF) Had its third quarter earnings call on Oct. 31, 2014. More...

PREM WATSA,VALUE INVESTING,FAIRFAX FINANCIAL,WARREN BUFFETT OF CANADA,


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User Comments

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Heisenman
ReplyHeisenman - 4 months ago
Does anyone know if there is an ETF, mutual fund or closed end fund that is made up of publicly traded "investment holding companies"?
Mocheng
ReplyMocheng - 1 year ago
From his performance table, I see that he doesn't even outperform S&P 500. How can we call him the Warren Buffett (Trades, Portfolio) of Canada?
Pensaman
ReplyPensaman - 2 years ago
FF owns BBRY about 10.06% of outstanding shares
Communication Equipment BBRY
51,854,700 541,486 21.8%
Charles.wilton
ReplyCharles.wilton - 2 years ago
WHEN I CLICK BLACKBERRY IT DOESNT SHOW PREM WATSA AND WHEN I CLICK ON WATSA PORTFOLIO BLACBERRY IS ON THE SECOND PAGE AND THE HISTORY CLICK DOESNT WORK. ALSO THE FORMAT IS DIFFERENT AFTER FIRST PAGE?S

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