Prem Watsa, the Investment Guru of 2008, made money while others lose. Over the past 12 months, he has seen tremendous growth in the book value of his company, Fairfax Financial Holdings. This is the Q3 portfolio update for Fairfax’s equity portfolio.
In a conference on Novermber 12, 2009, Prem Watsa made the following assessment to the current stock market level:
(Read more detailed excerpt of Prem Watsa's speech here).
Prem Watsa sells Methanex Corp., King Pharmaceuticals Inc., Alcoa Inc. during the 3-months ended 09/30/2009, according to the most recent filings of his investment company, Fairfax Financial Holdings, Inc.. Prem Watsa owns 42 stocks with a total value of $6.6 billion. These are the details of the buys and sells.
For the details of Prem Watsa's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Prem+Watsa
This is the sector weightings of his portfolio:
These are the top 5 holdings of Prem Watsa
General Electric Company has a market cap of $167.37 billion; its shares were traded at around $15.75 with a P/E ratio of 12.9 and P/S ratio of 0.9. The dividend yield of General Electric Company stocks is 2.5%. General Electric Company had an annual average earning growth of 12.7% over the past 10 years. GuruFocus rated General Electric Company the business predictability rank of 3.5-star.
Zenith National Insurance Corp. is a holding company. Zenith is engaged through its wholly-owned insurance subsidiaries, Zenith Insurance Company, CalFarm Insurance Company, ZNAT Insurance Company and Zenith Star Insurance Company, in the property-casualty insurance business. Zenith and its subsidiaries conduct business principally in the property and casualty insurance industry. Zenith National Insurance Corp. has a market cap of $1.04 billion; its shares were traded at around $27.93 with a P/E ratio of 9.8 and P/S ratio of 1.5. The dividend yield of Zenith National Insurance Corp. stocks is 7.2%. Zenith National Insurance Corp. had an annual average earning growth of 30.4% over the past 5 years.
SandRidge Energy, Inc. is an oil and natural gas company headquartered in Oklahoma City with its principal focus on exploration and production. It has a market cap of $1.75 billion; its shares were traded at around $9.54 with a P/E ratio of 13.7 and P/S ratio of 1.5.
Leucadia National Corp. has a market cap of $5.52 billion; its shares were traded at around $22.66 with and P/S ratio of 5.1.
BCE, Inc. is Canada's largest communications company. Through their operations in communications services, they provide residence and business customers in Canada with wireline and wireless communications products and applications, satellite communications and direct-to-home television services, systems integration expertise, electronic commerce solutions, Internet access and high-speed data services, and directories. Their shares are listed in Canada, the United States and Europe. B C E Inc has a market cap of $19.73 billion; its shares were traded at around $25.72 with a P/E ratio of 11.3 and P/S ratio of 1.3. The dividend yield of B C E Inc stocks is 5.7%. B C E Inc had an annual average earning growth of 9.4% over the past 10 years.
Methanex Corp. is a Vancouver based company engaged in the worldwide production and marketing of methanol. Methanol, made from natural gas, is a basic chemical building block used to manufacture products such as formaldehyde, MTBE, acetic acid and others. The Company operates production facilities in Canada, the United States, New Zealand and Chile. The Company also markets additional methanol from plants in the US, Trinidad and Europe. Methanex Corp. has a market cap of $1.66 billion; its shares were traded at around $17.98 with and P/S ratio of 0.7. The dividend yield of Methanex Corp. stocks is 3.4%. Methanex Corp. had an annual average earning growth of 23.9% over the past 5 years.
King Pharmaceuticals, Inc. is a vertically integrated pharmaceutical company that manufactures, markets and sells primarily branded prescription pharmaceutical products. King Pharmaceuticals Inc. had an annual average earning growth of 10.9% over the past 10 years. GuruFocus rated King Pharmaceuticals Inc. the business predictability rank of 4-star.
Alcoa Inc. is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, and is active in all major aspects of the industry. Alcoa Inc. has a market cap of $12.86 billion; its shares were traded at around $13.2 with and P/S ratio of 0.5. The dividend yield of Alcoa Inc. stocks is 0.9%. Alcoa Inc. had an annual average earning growth of 3.5% over the past 10 years.
In a conference on Novermber 12, 2009, Prem Watsa made the following assessment to the current stock market level:
In 2008 the stock market dropped 50 per cent. When something drops 50 per cent you have a ton ... of stocks selling at good values.... Now it's gone up 50, 60 per cent from March, and so it's a little more tricky.... A year ago there were many, many opportunities.... There's many less today.
(Read more detailed excerpt of Prem Watsa's speech here).
Prem Watsa sells Methanex Corp., King Pharmaceuticals Inc., Alcoa Inc. during the 3-months ended 09/30/2009, according to the most recent filings of his investment company, Fairfax Financial Holdings, Inc.. Prem Watsa owns 42 stocks with a total value of $6.6 billion. These are the details of the buys and sells.
For the details of Prem Watsa's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Prem+Watsa
This is the sector weightings of his portfolio:
| Financials | 56.2% |
| Industrials | 11.1% |
| Technology | 9.7% |
| Consumer Goods | 7.7% |
| Health Care | 6.4% |
| Telecommunications | 4.8% |
| Basic Materials | 2.2% |
| Consumer Services | 1.8% |
| Oil & Gas | 0.2% |
These are the top 5 holdings of Prem Watsa
- Odyssey Re Holdings Corp. (ORH) - 42,399,400 shares, 41.42% of the total portfolio
- Wells Fargo & Company (WFC) - 20,028,700 shares, 8.48% of the total portfolio
- Dell Inc. (DELL) - 34,763,489 shares, 7.98% of the total portfolio
- General Electric Company (GE) - 26,597,770 shares, 6.57% of the total portfolio
- Johnson & Johnson (JNJ) - 6,884,300 shares, 6.31% of the total portfolio
Added: General Electric Company (GE, Financial)
Prem Watsa added to his holdings in General Electric Company by 45.24%. His purchase prices were between $10.71 and $17.01, with an estimated average price of $13.68. The impact to his portfolio due to this purchase was 2.05%. His holdings were 26,597,770 shares as of 09/30/2009.General Electric Company has a market cap of $167.37 billion; its shares were traded at around $15.75 with a P/E ratio of 12.9 and P/S ratio of 0.9. The dividend yield of General Electric Company stocks is 2.5%. General Electric Company had an annual average earning growth of 12.7% over the past 10 years. GuruFocus rated General Electric Company the business predictability rank of 3.5-star.
Added: Zenith National Insurance Corp. (ZNT, Financial)
Prem Watsa added to his holdings in Zenith National Insurance Corp. by 78.32%. His purchase prices were between $20.7 and $31.74, with an estimated average price of $25.49. The impact to his portfolio due to this purchase was 0.2%. His holdings were 991,100 shares as of 09/30/2009.Zenith National Insurance Corp. is a holding company. Zenith is engaged through its wholly-owned insurance subsidiaries, Zenith Insurance Company, CalFarm Insurance Company, ZNAT Insurance Company and Zenith Star Insurance Company, in the property-casualty insurance business. Zenith and its subsidiaries conduct business principally in the property and casualty insurance industry. Zenith National Insurance Corp. has a market cap of $1.04 billion; its shares were traded at around $27.93 with a P/E ratio of 9.8 and P/S ratio of 1.5. The dividend yield of Zenith National Insurance Corp. stocks is 7.2%. Zenith National Insurance Corp. had an annual average earning growth of 30.4% over the past 5 years.
Reduced: Sandridge Energy Inc (SD, Financial)
Prem Watsa reduced to his holdings in Sandridge Energy Inc by 28.95%. His sale prices were between $7.96 and $13.72, with an estimated average price of $11.02. The impact to his portfolio due to this sale was -0.05%. Prem Watsa still held 881,600 shares as of 09/30/2009.SandRidge Energy, Inc. is an oil and natural gas company headquartered in Oklahoma City with its principal focus on exploration and production. It has a market cap of $1.75 billion; its shares were traded at around $9.54 with a P/E ratio of 13.7 and P/S ratio of 1.5.
Reduced: Leucadia National Corp. (LUK, Financial)
Prem Watsa reduced to his holdings in Leucadia National Corp. by 32.4%. His sale prices were between $18.25 and $26.33, with an estimated average price of $23.71. The impact to his portfolio due to this sale was -0.08%. Prem Watsa still held 676,000 shares as of 09/30/2009.Leucadia National Corp. has a market cap of $5.52 billion; its shares were traded at around $22.66 with and P/S ratio of 5.1.
Reduced: B C E Inc (BCE, Financial)
Prem Watsa reduced to his holdings in B C E Inc by 91.55%. His sale prices were between $20.09 and $25.33, with an estimated average price of $23.31. The impact to his portfolio due to this sale was -0.09%. Prem Watsa still held 268,300 shares as of 09/30/2009.BCE, Inc. is Canada's largest communications company. Through their operations in communications services, they provide residence and business customers in Canada with wireline and wireless communications products and applications, satellite communications and direct-to-home television services, systems integration expertise, electronic commerce solutions, Internet access and high-speed data services, and directories. Their shares are listed in Canada, the United States and Europe. B C E Inc has a market cap of $19.73 billion; its shares were traded at around $25.72 with a P/E ratio of 11.3 and P/S ratio of 1.3. The dividend yield of B C E Inc stocks is 5.7%. B C E Inc had an annual average earning growth of 9.4% over the past 10 years.
Sold Out: Methanex Corp. (MEOH, Financial)
Prem Watsa sold out his holdings in Methanex Corp.. His sale prices were between $11.89 and $20.2, with an estimated average price of $16.38.Methanex Corp. is a Vancouver based company engaged in the worldwide production and marketing of methanol. Methanol, made from natural gas, is a basic chemical building block used to manufacture products such as formaldehyde, MTBE, acetic acid and others. The Company operates production facilities in Canada, the United States, New Zealand and Chile. The Company also markets additional methanol from plants in the US, Trinidad and Europe. Methanex Corp. has a market cap of $1.66 billion; its shares were traded at around $17.98 with and P/S ratio of 0.7. The dividend yield of Methanex Corp. stocks is 3.4%. Methanex Corp. had an annual average earning growth of 23.9% over the past 5 years.
Sold Out: King Pharmaceuticals Inc. (KG, Financial)
Prem Watsa sold out his holdings in King Pharmaceuticals Inc.. His sale prices were between $9.02 and $10.95, with an estimated average price of $9.95.King Pharmaceuticals, Inc. is a vertically integrated pharmaceutical company that manufactures, markets and sells primarily branded prescription pharmaceutical products. King Pharmaceuticals Inc. had an annual average earning growth of 10.9% over the past 10 years. GuruFocus rated King Pharmaceuticals Inc. the business predictability rank of 4-star.
Sold Out: Alcoa Inc. (AA, Financial)
Prem Watsa sold out his holdings in Alcoa Inc.. His sale prices were between $9.23 and $14.26, with an estimated average price of $11.97.Alcoa Inc. is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, and is active in all major aspects of the industry. Alcoa Inc. has a market cap of $12.86 billion; its shares were traded at around $13.2 with and P/S ratio of 0.5. The dividend yield of Alcoa Inc. stocks is 0.9%. Alcoa Inc. had an annual average earning growth of 3.5% over the past 10 years.
