Prem Watsa

Prem Watsa

Last Update: 11-10-2016

Number of Stocks: 29
Number of New Stocks: 2

Total Value: $1,110 Mil
Q/Q Turnover: 0%

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 Boosts Money-Losing Hedges on Continued Worry About Market Crash Watsa sees problems around the world and price-value disconnect on many stocks
Canada’s best Warren Buffett (Trades, Portfolio) analog, Prem Watsa (Trades, Portfolio), spoke this week on his “concern about the financial markets” that caused him to increase his hedges on his common stocks even as he posted millions in losses in the portfolio for the first half of 2016. Read more...
Prem Watsa Increases Portfolio Hedges to Protect Against Market Drop Watsa fully hedges portfolio on concerns of financial markets and economic outlook
Investor Prem Watsa (Trades, Portfolio) has increased his portfolio hedges up to 100% of his equity investment portfolio since the start of the year to protect against volatility, he said Thursday. Read more...
Prem Watsa, Who Fears Once-in-a-Century Financial Storm, Buys 7 New Stocks 'Warren Buffett of Canada' releases portfolio update
Prem Watsa (Trades, Portfolio) has hedged his portfolio for several years, which has muted his returns but protected his investors from the possibility of a once-in-a-century economic disaster. Read more...
Warren Buffett's Ratio Shows Market Is Overvalued High yield prices are falling, and the S&P 500 might follow its path
Many investors would love to predict the market to know whether the market is on the uptrend or downtrend. It’s really hard to do, and I personally think it’s impossible to predict the market, especially in a short-term. However, it is possible and useful to have a general idea of whether the overall market is overvalued, fairly valued or undervalued. We don’t need to know the absolute number to determine the state of the market, but we can have the feel for it. Benjamin Graham, the father of value investing, has said: “You don’t have to know a man’s exact weight to know that he’s fat.” Read more...
This Company Was Prepared for the Brexit Prem Watsa successfully hedged his company for the financial crisis and now has hedges in place for another stock market crash and deflation
As the Dow Jones Industrial Average fell 610 points (3.39%) after the Brexit announcement, Fairfax Financial (FFH) was up 1.64% in the U.S. market and 3.55% in the Canadian market. If the market continues its turbulence, I would expect more of the same from the company led by value investing guru Prem Watsa. Read more...
» More Prem Watsa Articles

Commentaries and Stories

  • Currently 4.00/5

Rating: 4.0/5 (1 vote)

Prem Watsa Reduces Defensive Equity Hedges on Trump Election Watsa sees possible rally ahead Prem Watsa - Prem Watsa Reduces Defensive Equity Hedges On Trump Election
Prem Watsa (Trades, Portfolio) announced today that the results of the U.S. election had mitigated his concerns about the economy that prompted his decision to fully hedge his equity portfolio for years. In a press release, the Fairfax Financial Holdings founder said he reduced the hedges and that "there is the potential for a longer term rally in U.S equity markets that reduces the need for the capital preservation protection of equity hedging." More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Canadian Warren Buffett Prem Watsa Bought 2 Stocks Watsa was hedged and cautious and made only two portfolio changes in Q3 but has since become more optimistic Prem Watsa - Canadian Warren Buffett Prem Watsa Bought 2 Stocks
Frequently dubbed the “Warren Buffett (Trades, Portfolio) of Canada,” Prem Watsa (Trades, Portfolio) executed two trades in the third quarter, his exclusive portfolio changes. More...

  • Currently 4.50/5

Rating: 4.5/5 (2 votes)

Watsa's Fairfax Sees Profits Wilt on Investment Losses Holding company affected by price fluctuations in 3rd quarter Prem Watsa - Watsa's Fairfax Sees Profits Wilt On Investment Losses
Prem Watsa (Trades, Portfolio)’s Fairfax Financial Holdings (TSX:FFH)(FRFHF) hosted a conference call to discuss its third-quarter results Friday morning. The results were released at market close Thursday. More...

FAIRFAX, CANADA, 3Q, EARNINGS, INSURANCE


  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

17 Questions With Scott Philips 'We believe the international markets are more discounted, and therefore offer more opportunity' Charlie Munger,Prem Watsa - 17 Questions With Scott Philips
How did you get started investing? More...

  • Currently 1.00/5

Rating: 1.0/5 (1 vote)

Interview With George Athanassakos Insight from a value investor and director of the Ben Graham Center for Value Investing Prem Watsa - Interview With George Athanassakos
I had the pleasure of having a brief conversation with George Athanassakos, value investor and director of the Ben Graham Center for Value Investing, as he was overseas on business. We talked about his favorite companies, what he looks for in a company and his favorite books, as well as his disciplined appropach. More...

CANADA, IVEY, UNIVERSITY, VALUE, BUFFETT, MARGIN OF SAFETY


  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

Prem Watsa Increases Stake in Canadian Media Company to 27% Watsa is buying as the price drops Prem Watsa - Prem Watsa Increases Stake In Canadian Media Company To 27%
Investor Prem Watsa (Trades, Portfolio) bought a large chunk of Canada-based media company and owner of Canada’s largest daily newspaper Torstar Corp. (TSX:TS.B) that increased his ownership to 27.4% of the company, he reported Thursday. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Prem Watsa Picks 4 Tiny New Positions in 2nd Quarter Fairfax Financial is conservative Prem Watsa - Prem Watsa Picks 4 Tiny New Positions In 2nd Quarter
Prem Watsa (Trades, Portfolio) who runs the insurance conglomerate Fairfax Financial added four very small positions to his portfolio in the second quarter, he disclosed Friday. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

  • Currently 5.00/5

Rating: 5.0/5 (5 votes)

Prem Watsa Boosts Money-Losing Hedges on Continued Worry About Market Crash Watsa sees problems around the world and price-value disconnect on many stocks Prem Watsa - Prem Watsa Boosts Money-Losing Hedges On Continued Worry About Market Crash
Canada’s best Warren Buffett (Trades, Portfolio) analog, Prem Watsa (Trades, Portfolio), spoke this week on his “concern about the financial markets” that caused him to increase his hedges on his common stocks even as he posted millions in losses in the portfolio for the first half of 2016. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Prem Watsa Buys ICICI Bank, Leucadia National Guru's largest trades of the 1st quarter Prem Watsa,Ken Fisher,Jim Simons,Sarah Ketterer,Ho - Prem Watsa Buys ICICI Bank, Leucadia National
Prem Watsa (Trades, Portfolio) manages a portfolio of 29 stocks with total value of $1.126 billion. The following are his most heavily weighted trades of the first quarter: More...

  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

This Company Was Prepared for the Brexit Prem Watsa successfully hedged his company for the financial crisis and now has hedges in place for another stock market crash and deflation Prem Watsa,Warren Buffett - This Company Was Prepared For The Brexit
As the Dow Jones Industrial Average fell 610 points (3.39%) after the Brexit announcement, Fairfax Financial (FFH) was up 1.64% in the U.S. market and 3.55% in the Canadian market. If the market continues its turbulence, I would expect more of the same from the company led by value investing guru Prem Watsa. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

BlackBerry May Have Finally Turned the Corner Improvement in TTM operating cash flow indicates Blackberry is on the mend PRIMECAP Management,Prem Watsa,Jim Simons,Kahn Bro - BlackBerry May Have Finally Turned The Corner
I start this note with a quote from the English economist A.C. Pigou: "The error of optimism dies in the crisis, but in dying it gives birth to an error of pessimism. This new error is born, not an infant, but a giant." More...

BLACKBERRY, LONG, TECHNOLOGY, MOBILE, SOFTWARE


  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

Prem Watsa, Who Fears Once-in-a-Century Financial Storm, Buys 7 New Stocks 'Warren Buffett of Canada' releases portfolio update Prem Watsa - Prem Watsa, Who Fears Once-in-a-Century Financial Storm, Buys 7 New Stocks
Prem Watsa (Trades, Portfolio) has hedged his portfolio for several years, which has muted his returns but protected his investors from the possibility of a once-in-a-century economic disaster. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Helmerich & Payne, MasterCard Have Growing Dividend Yields Companies with strong, steady profitability and growing yield Prem Watsa, Chuck Royce, Warren Buffett - Helmerich & Payne, MasterCard Have Growing Dividend Yields
Thanks to GuruFocus’ All-in-One Screener, I want to highlight stocks that have a growing dividend yield with sustainable payout ratio. This sustainability is confirmed by long-term company profitability and a very strong financial situation. More...

  • Currently 4.00/5

Rating: 4.0/5 (1 vote)

Prem Watsa Buys 8 Million Shares of Exco Resources Guru continues to add Exco to his portfolio Prem Watsa,Warren Buffett - Prem Watsa Buys 8 Million Shares Of Exco Resources
Guru Prem Watsa (Trades, Portfolio) added 8 million shares of Exco Resources Inc. (NYSE:XCO) to his portfolio in the fourth quarter. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Prem Watsa's Fairfax Financial 2015 Annual Report Book value per share increased by 4.5% to $403 per share Prem Watsa - Prem Watsa's Fairfax Financial 2015 Annual Report
To Our Shareholders: More...

FAIRFAX FINANCIAL,2016,ANNUAL REPORT,GROWTH BOOK VALUE,VALUE INVESTING,LONG-TERM,


  • Currently 4.00/5

Rating: 4.0/5 (1 vote)

Both Insiders and Gurus Are Buying These 3 Companies Interesting stock ideas on the GuruFocus Double Buy screen Prem Watsa, Jim Simons, Steven Cohen, Ray Dalio - Both Insiders And Gurus Are Buying These 3 Companies
GuruFocus has various tools and screeners available to make the quest for your next great investment a little bit more efficient. A tool that I am fond is the Double Buy screen. By employing it you can easily screen a list of stocks that have been tapped by both gurus and insiders. Both types of events tend to trigger my interest, but when they occur simultaneously, it is time to pay close attention. I regularly review the list, and today I want to highlight three stocks from the top 10 that really stand out to me because of the combined buying data. More...

LONG, ENERGY, COMMODITIES, RESOURCES


  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

Warren Buffett's Ratio Shows Market Is Overvalued High yield prices are falling, and the S&P 500 might follow its path Warren Buffett, Prem Watsa - Warren Buffett's Ratio Shows Market Is Overvalued
Many investors would love to predict the market to know whether the market is on the uptrend or downtrend. It’s really hard to do, and I personally think it’s impossible to predict the market, especially in a short-term. However, it is possible and useful to have a general idea of whether the overall market is overvalued, fairly valued or undervalued. We don’t need to know the absolute number to determine the state of the market, but we can have the feel for it. Benjamin Graham, the father of value investing, has said: “You don’t have to know a man’s exact weight to know that he’s fat.” More...

  • Currently 4.67/5

Rating: 4.7/5 (3 votes)

Prem Watsa Increases Portfolio Hedges to Protect Against Market Drop Watsa fully hedges portfolio on concerns of financial markets and economic outlook Prem Watsa - Prem Watsa Increases Portfolio Hedges To Protect Against Market Drop
Investor Prem Watsa (Trades, Portfolio) has increased his portfolio hedges up to 100% of his equity investment portfolio since the start of the year to protect against volatility, he said Thursday. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Prem Watsa's 5 Largest New Buys 'Canada's Warren Buffett' releases updated portfolio Prem Watsa - Prem Watsa's 5 Largest New Buys
Prem Watsa (Trades, Portfolio), whose investing of the float of his Canadian insurance conglomerate has drawn comparisons to Warren Buffett (Trades, Portfolio) and Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), revealed the new fourth-quarter investments he made on Friday. More...

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