Massive Stakes - Prem Watsa Resolute on BlackBerry and Others

Author's Avatar
Jul 21, 2013
Prem Watsa, founder of Fairfax Financial Holdings, makes massive commitments and takes the long view. Watsa’s BlackBerry (BBRY, Financial) stake is one example of that. While many surmise that the smart phone boom has reached its zenith, BlackBerry, the smallest player, is vastly outsold by Apple Inc. (AAPL, Financial) and Samsung Electronics, but BBRY is still the “apple” of Prem Watsa’s portfolio. Though BBRY is down 23% year to date, it’s up 31% over 12 months, and way up, 157% over 10 years, demonstrating the value of the long view.

The portfolio of Fairfax Financial Holdings currently lists 42 stocks, one of them new, and a total value of $2.67 billion with a quarter-over-quarter turnover of 0%. Here are the details on a few of the massive stakes held by Guru Prem Watsa.

Up 31% over 12 Months

BlackBerry Ltd. (BBRY)

Weightings: 28%

Shares Owned: 51,854,700

Share Price: $8.97

While many billionaire Gurus reduced their BBRY position in the first quarter of 2013, the top Guru shareholder of BlackBerry Ltd. (BBRY), Prem Watsa still owns a massive stake in the company, 28% of shares outstanding. His trading history shows a 10% loss on more than 51.8 million shares bought at an average price of $9.94.

Blackberry Ltd. has a market cap of $4.7 billion; its shares were traded at around $8.97 with a P/B ratio of 0.50 and P/S ratio of 0.41. Blackberry Ltd. has had an annual average earnings growth of 43.3% over the past 10 years.


Up 52% over 12 Months

Resolute Forest Products Inc. (RFP, Financial)

Weighting: 15%

Shares Owned: 24,776,519 (28,156,819 as of April 30, 2013)

Share Price: $15.28

The top Guru shareholder of Resolute Forest Products Inc. (RFP), Prem Watsa owns another massive stake of 29.72% shares outstanding in this paper company, a global leader in the forest products industry.

A relatively new holding first bought in the second quarter of 2012, RFP gained 26.6% for Watsa on over 18.4 million shares bought at an average price of $12.07.

His average gain on more than 24.7 million shares bought is 26%.

A Canadian company, Resolute Forest Products Inc. (RFP) has a market cap of $1.44 billion; its shares were traded at around $15.28 with a P/B ratio of 0.47 and P/S ratio of 0.33.


Up 35% over 12 Months

Johnson & Johnson (JNJ, Financial)

Weighting: 18.1%

Shares Owned: 5,941,600

Share Price: $92.23

Top sixth Guru shareholder, Prem Watsa owns 18.1% of Johnson & Johnson (JNJ) shares outstanding. His five-year trading history shows consistent gains in all quarters traded since the fourth quarter of 2008. His average gain on shares bought and sold is 51% and 57%, respectively.

Johnson & Johnson has a market cap of $253.28 billion; its shares were traded at around $92.23 with a P/E ratio of 20.50 and P/S ratio of 3.76. The dividend yield of Johnson & Johnson stocks is 2.70%. Johnson & Johnson has had an annual average earnings growth of 6.2% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 2.5-star.


Check out the complete portfolio of Prem Watsa.

1. Prem Watsa's Undervalued Stocks

2. Prem Watsa's Top Growth Companies

3. Prem Watsa's High Yield stocks

4. Stocks that Prem Watsa keeps buying

If you are not yet a Premium Member, we invite you for a 7-day Free Trial.

Use the GuruFocus Value Screen to find 52-Week Lows and discover potentially deep value stocks held by billionaire Guru investors.

GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

The GuruFocus Score Board of Gurus shows which investors produced the largest average returns in the past 6 and 12 months, as well as on a historical basis.