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Holly LaFon
Holly LaFon
Articles (10163)  | Author's Website |

Prem Watsa's Stock Buys and Sells of Q4

February 16, 2015 | About:

“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.

Watsa’s common stock investments at his insurance conglomerate Fairfax Financial Holdings (TSX:FFH) were worth $4.85 billion at year-end, compared to $3.8 billion at the previous year-end. He also reported in his fourth quarter financials that he retained his long-standing hedges on his equity positions at 86.6% of his portfolio, a decrease from 89.6% from a year ago due to appreciation and net purchase in equity and equity-related holdings.

At fourth quarter-end, Watsa’s portfolio contained 43 stocks, with two new additions. Over 47% of the stocks in the portfolio reside in the Technology sector, followed by 33% in the Basic Materials and 8.6% in Energy.

In the fourth quarter, Watsa’s two new stock picks were: Colfax Corp (NYSE:CFX) and Cubist Pharmaceuticals (CBST). He also sold out of one position: Bally Technologies (BYI).

Colfax Corp (NYSE:CFX)

Watsa purchased 6,300 shares of Colfax Corp, a 0.0021% portfolio weighting. The stock’s share price averaged $53 in the fourth quarter.

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Colfax Corp was organized as a Delaware corporation in 1998. Colfax Corp has a market cap of $6.43 billion; its shares were traded at around $52.02 with a P/E ratio of 19.6 and P/S ratio of 1.30. Colfax Corp had an annual average earnings growth of 48.60% over the past five years.

Cubist Pharmaceuticals (CBST)

Watsa purchased 20,200 shares of Cubist Pharmaceuticals, a 0.13% portfolio holding.

03May20171149091493830149.png

Cubist Pharmaceuticals, Inc., was incorporated as a Delaware corporation in 1992. Cubist Pharmaceuticals Inc has a market cap of $7.68 billion; its shares were traded at around $101.94 with a P/E ratio of 126.00 and P/S ratio of 7.23.

Bally Technologies Inc. (BYI)

Watsa also sold out of his holding of 21,400 shares of Bally Technologies.

03May20171149101493830150.png

Bally Technologies Inc. was incorporated in Nevada on Sept. 30, 1968, under the name Advanced Patent Technologies. Bally Technologies Inc. has a market cap of $3.2 billion; its shares were traded at around $83.27 with a P/E ratio of 36.20 and P/S ratio of 2.52. Bally Technologies Inc. had an annual average earnings growth of 31.0% over the past 10 years. GuruFocus rated Bally Technologies Inc. the business predictability rank of 3.5-star.

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About the author:

Holly LaFon
I'm a financial journalist with a Master of Science in journalism from Medill at Northwestern University.

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