Prem Watsa (Trades, Portfolio), founder and chairman of Fairfax Financial Holdings Ltd. (TSX:FFH, Financial), disclosed this week that his firm’s top trades during the third quarter included a new buy in International Seaways Inc. (INSW, Financial) and the closure of its position in Lumen Technologies (LUMN, Financial).
In 1985, Watsa met Francis Chou (Trades, Portfolio), who explained that Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) CEO Warren Buffett (Trades, Portfolio) made money using insurance float. Deciding to also utilize insurance float to build an investment portfolio, Fairfax seeks a high return on invested capital through a conservative value investment philosophy with emphasis on total returns.
As of Sept. 30, Fairfax’s $3.11 billion equity portfolio contains 59 stocks, with 11 new positions and a turnover ratio of 1%. The top four sectors in terms of weight are financial services, technology, materials and real estate, with weights of 49.85%, 20.78%, 12.06% and 8.65%, respectively.
Fairfax purchased 572,954 shares of International Seaways (INSW, Financial), giving the position 0.37% of the total equity portfolio space. Shares averaged $17.12 during the third quarter; the stock is fairly valued based on Monday’s price-to-GF-Value ratio of 1.11.
GuruFocus ranks the New York-based marine transportation company’s financial strength 3 out of 10 on several warning signs, which include a weak Altman Z-score of 0.71 and a cash-to-debt ratio that underperforms more than 60% of global competitors.
Shares of Lumen averaged $12.55 during the third quarter; the stock is modestly overvalued based on Monday’s price-to-GF-Value ratio of 1.25.
GuruFocus ranks the Monroe, Louisiana-based telecommunication carrier’s financial strength 3 out of 10 on several warning signs, which include a weak Altman Z-score of 0.52 and interest coverage and debt ratios underperforming more than 77% of global competitors.
- Warren Buffett Undervalued Stocks
- Warren Buffett Top Growth Companies
- Warren Buffett High Yield stocks, and
- Stocks that Warren Buffett keeps buying
- Prem Watsa Undervalued Stocks
- Prem Watsa Top Growth Companies
- Prem Watsa High Yield stocks, and
- Stocks that Prem Watsa keeps buying
- Azvalor Internacional FI Undervalued Stocks
- Azvalor Internacional FI Top Growth Companies
- Azvalor Internacional FI High Yield stocks, and
- Stocks that Azvalor Internacional FI keeps buying