Prem Watsa of Fairfax Financial Holdings took the advantages of the financial crisis, and double his company’s book value. He is a great investor. This is the Q4 portfolio update of Fairfax Financial Holdings, Inc.

Prem Watsa owns 38 stocks with a total value of $3.7 billion. These are the details of the buys and sells.

• Added Positions: FTR, ICO, SD, ZNT,
• Reduced Positions: BNI, LUK,
• Sold Out: GCI, INTC, ODP, VIA-B,

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

1. Wells Fargo & Company (WFC) - 20,043,700 shares, 14.67% of the total portfolio
2. Dell Inc. (DELL) - 34,763,489 shares, 13.55% of the total portfolio
3. Johnson & Johnson (JNJ) - 6,884,300 shares, 12.04% of the total portfolio
4. General Electric Company (GE) - 26,597,770 shares, 10.94% of the total portfolio
5. U.S. Bancorp (USB) - 15,857,400 shares, 9.69% of the total portfolio

Added: Sandridge Energy Inc (SD, Financial)

Prem Watsa added to his holdings in Sandridge Energy Inc by 640.31%. His purchase prices were between $8.21 and $13.84, with an estimated average price of $10.35. The impact to his portfolio due to this purchase was 1.44%. His holdings were 6,526,600 shares as of 12/31/2009.


SandRidge Energy, Inc. is an oil and natural gas company headquartered in Oklahoma City with its principal focus on exploration and production. Sandridge Energy Inc has a market cap of $1.74 billion; its shares were traded at around $8.45 with a P/E ratio of 12.2 and P/S ratio of 1.5.

Added: Zenith National Insurance Corp. (ZNT, Financial)

Prem Watsa added to his holdings in Zenith National Insurance Corp. by 121.08%. His purchase prices were between $27.62 and $32, with an estimated average price of $29.61. The impact to his portfolio due to this purchase was 0.97%. His holdings were 2,191,100 shares as of 12/31/2009.


Zenith National Insurance Corp. is a holding company. Zenith National Insurance Corp. has a market cap of $1.05 billion; its shares were traded at around $28.05 with a P/E ratio of 9.9 and P/S ratio of 1.7. The dividend yield of Zenith National Insurance Corp. stocks is 7.3%. Zenith National Insurance Corp. had an annual average earning growth of 30.4% over the past 5 years.

Added: International Coal Group Inc. (ICO, Financial)

Prem Watsa added to his holdings in International Coal Group Inc. by 23.58%. His purchase prices were between $3.59 and $5.08, with an estimated average price of $4.29. The impact to his portfolio due to this purchase was 0.9%. His holdings were 45,155,588 shares as of 12/31/2009.


ICG is a producer of coal in Northern and Central Appalachia and the Illinois Basin. International Coal Group Inc. has a market cap of $568.8 million; its shares were traded at around $3.69 with a P/E ratio of 16.8 and P/S ratio of 0.5.

Added: Frontier Commun Cp (FTR, Financial)

Prem Watsa added to his holdings in Frontier Commun Cp by 19.41%. His purchase prices were between $7.12 and $8.46, with an estimated average price of $7.59. The impact to his portfolio due to this purchase was 0.64%. His holdings were 18,620,000 shares as of 12/31/2009.


FRONTIER COMMUNICATIONS CORPORATION, formerly Citizens Communications Company, is a full-service communications provider and one of the largest rural local exchange telephone companies in the country. Frontier Commun Cp has a market cap of $2.37 billion; its shares were traded at around $7.6 with a P/E ratio of 14.7 and P/S ratio of 1.1. The dividend yield of Frontier Commun Cp stocks is 13.1%.

Reduced: Burlington Northern Santa Fe Corp. (BNI, Financial)

Prem Watsa reduced to his holdings in Burlington Northern Santa Fe Corp. by 99.81%. His sale prices were between $75.32 and $98.95, with an estimated average price of $92.79. The impact to his portfolio due to this sale was -0.01%. Prem Watsa still held 4,000 shares as of 12/31/2009.


Burlington North/Santa Fe, through its subsidiary The Burlington Northern and Santa Fe Railway Company, operates one of the largest railroad networks in North America. Burlington Northern Santa Fe Corp. has a market cap of $34.14 billion; its shares were traded at around $100.23 with a P/E ratio of 21.3 and P/S ratio of 2.4. The dividend yield of Burlington Northern Santa Fe Corp. stocks is 1.6%. Burlington Northern Santa Fe Corp. had an annual average earning growth of 8.1% over the past 10 years. GuruFocus rated Burlington Northern Santa Fe Corp. the business predictability rank of 2-star.

Reduced: Leucadia National Corp. (LUK, Financial)

Prem Watsa reduced to his holdings in Leucadia National Corp. by 40.56%. His sale prices were between $21.36 and $24.94, with an estimated average price of $23.17. The impact to his portfolio due to this sale was -0.11%. Prem Watsa still held 401,800 shares as of 12/31/2009.


LEUCADIA NATL is a diversified financial services holding companyprincipally engaged in personal and commercial lines of property and casualty insurance, life insurance, banking and lending and manufacturing. Leucadia National Corp. has a market cap of $5.37 billion; its shares were traded at around $22.08 with and P/S ratio of 5.1.

Sold Out: Intel Corp. (INTC, Financial)

Prem Watsa sold out his holdings in Intel Corp.. His sale prices were between $18.5 and $20.59, with an estimated average price of $19.69.


Intel Corporation, one of the world's largest semiconductor chip maker, supplies the computing and communications industries with chips, boards, and systems building blocks that are integral to computers, servers, and networking and communications products. Intel Corp. has a market cap of $110.77 billion; its shares were traded at around $20.06 with a P/E ratio of 19.7 and P/S ratio of 3.1. The dividend yield of Intel Corp. stocks is 3.1%. Intel Corp. had an annual average earning growth of 0.4% over the past 10 years.

Sold Out: Office Depot Inc. (ODP, Financial)

Prem Watsa sold out his holdings in Office Depot Inc.. His sale prices were between $5.75 and $7.52, with an estimated average price of $6.61.


Office Depot, Inc., together with its subsidiaries, is the one of the largest suppliers of office products and services in the world. Office Depot Inc. has a market cap of $1.6 billion; its shares were traded at around $5.82 with and P/S ratio of 0.1. Office Depot Inc. had an annual average earning growth of 5.5% over the past 10 years.

Sold Out: Gannett Co. Inc. (GCI, Financial)

Prem Watsa sold out his holdings in Gannett Co. Inc.. His sale prices were between $9.76 and $15.63, with an estimated average price of $12.12.


Gannett Co., Inc. is an international news and information company that publishes daily newspapers in the USA, including USA TODAY, the nation'slargest-selling daily newspaper. Gannett Co. Inc. has a market cap of $3.36 billion; its shares were traded at around $14.21 with a P/E ratio of 7.7 and P/S ratio of 0.6. The dividend yield of Gannett Co. Inc. stocks is 1.2%. Gannett Co. Inc. had an annual average earning growth of 4.9% over the past 10 years.

Sold Out: Viacom Inc. (VIA-B)

Prem Watsa sold out his holdings in Viacom Inc.. His sale prices were between $27.42 and $31.39, with an estimated average price of $29.65.


Viacom is a global entertainment content company whose family of prominent and respected brands includes the multiplatform properties of MTV Networks, BET Networks, Paramount Pictures, Paramount Home Entertainment and DreamWorks. Viacom Inc. has a market cap of $15.71 billion; its shares were traded at around $28.33 with a P/E ratio of 11.8 and P/S ratio of 1.1.