Prem Watsa

Prem Watsa

Last Update: 06-09-2017

Number of Stocks: 31
Number of New Stocks: 5

Total Value: $1,239 Mil
Q/Q Turnover: 5%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Prem Watsa' s Profile & Performance

Profile

Prem Watsa was born on Aug. 5, 1950. His parents were originally from the small Christian community in southern city of Mangalore.

Studied at the Indian Institute of Technology, major in chemical engineering.

On Sept. 11, 1972, Prem Watsa arrived in London, Ontario, with $8 in his pocket and a $600 draft toward the first year's tuition.

Attend the MBA program at what later became the Ivey Business School at the Univesrity of Western Ontario.

Arrived at his first job Confederation Life in 1974. John Watson, the director of research handed him a book "Security Analysis". "

1985: met Francis Chou, then working as a telephone technician at Bell Canada. One day, Francis asked Prem almost casually, "Do you know how Warren Buffett made his money?" Prem thought he knew the answer, but Francis pointed to something he hadn't noticed: insurance float.

Met Steve Markel and set down the terms to buy Markel Financial for $5 million.

1986: Markel Financial was renamed Fairfax Financial. It means "fair, friendly acquisitions".

Book value per share grew from $1.52 in 1985 to $10.5 in 1989, which then grew to $38.89 in 1995.

Made series acquisitions, asset reaches billions.

Fairfax was listed on NYSE in 2002.

Attacked by hedge fund shorts including Jim Chanos, Whitney Tilson etc. Stock price down 40% to Cdn$57.

Regarding to shorts, Prem said, "Our one major worry, was that people would no longer deal with us. It never used to be that way, but now everybody looks at the stock price to get a sense in confidence in a company."

Filed lawsuit against shorts in 2006.

Buy CDS. "We bought our first (CDS) contract in 2003 and our last ones in December 2007. We just keep buying more and more, first five-year, then sever-year, because they were so cheap..." At one investment committee meeting where pre asked, "What's the best idea we've got?" Francis Chou, who's a pretty shy guy, piped up, "buy more credit default insurance." In the fall of 2008, Fairfax started to sell its CDS. The company made about $2 billion from those sales.

Removed its hedge in 2009.

90% hedged as September, 2011.

Prem Watsa Quotes:

"Being an immigrant, you develop qualities you never thought you had, you do things you never thought you'd do. You work harder, because you're at the bottom and the only way is up. I consider my kids less fortunate for not having had the immigrant experience."

"Warren Buffett attributes his success to Ben Graham's work, and in a smaller way, it is the same for me and hundreds of people who've made it as investors. You read that book and wither you get what it's saying in a smap or you never get it. For me it was so simple and made so much sense, I thought I had died and gone to heaven. It was my 'road to Damascus' moment."

This is by Tony Hamblin, Prem Watsa's partner in starting his investment firm: "It doesn't take a lot of money to start up an investment conselling company. The cost of entry is qualitative. You need to have a track record, contacts and credibility, and fortunately Prem and I had all three.

"Our long-term view has also meant that we have a commitment not to sell our core companies, no matter how attractive the price."

"Anything in the world is possible," as Ronald Regan used to say, "If you don't care who gets the credit."

Having shaken hands on an acquisition, we've never walked away from a commitment or gone back to change the deal.

"Work as hard as you can, as though everything depended on you"

Web Page:http://fairfax.ca/

Total Holding History

Performance of Fairfax Per Share Book Value

YearReturn (%)S&P500 (%)Excess Gain (%)
2016-6.411.96-18.4
20154.51.383.1
201419.513.695.8
3-Year Cumulative16.9 (5.3%/year)29 (8.9%/year)-12.1 (-3.6%/year)
2013-7.832.39-40.2
20126.516-9.5
5-Year Cumulative14.8 (2.8%/year)98.2 (14.7%/year)-83.4 (-11.9%/year)
201102.11-2.1
2010515.06-10.1
20093526.468.5
200821-3758.0
200748.75.4943.2
10-Year Cumulative192.7 (11.3%/year)95.7 (6.9%/year)97 (4.4%/year)
20069.215.79-6.6
2005-184.91-22.9
2004-4.110.88-15.0
200329.128.680.4
200211.2-22.133.3
15-Year Cumulative260.9 (8.9%/year)164.2 (6.7%/year)96.7 (2.2%/year)
2001-12.2-11.89-0.3
20005-9.114.1
19993821.0417.0
19983028.581.4
19973633.362.6
20-Year Cumulative711.7 (11%/year)339.2 (7.7%/year)372.5 (3.3%/year)
19966322.9640.0
19952537.58-12.6
1994181.3216.7
19934210.0831.9
199217.62-6.6
25-Year Cumulative2698.9 (14.3%/year)791.8 (9.1%/year)1907.1 (5.2%/year)
19912430.47-6.5
199041-3.144.1
19892731.69-4.7
19883116.6114.4
1987485.142.9
30-Year Cumulative11949.2 (17.3%/year)1719.7 (10.2%/year)10229.5 (7.1%/year)
198618018.6161.4

Top Ranked Articles

Nuggets From Prem Watsa Investing insights from an investing guru
Every March, Prem Watsa (Trades, Portfolio) of Fairfax Financial Holdings Ltd. (TSX:FFH) releases his annual letter to shareholders. Read more...
'Canada's Warren Buffett' Prem Watsa Praises Trump, Forecasts Stock Pickers' Market Watsa makes largest acquisition ever, anticipating a surge in growth
Prem Watsa (Trades, Portfolio) embarked on his “largest and best” acquisition in his company’s 31-year history this week, encouraged by what he views as a pro-business environment ushered in by the election of President-elect Donald Trump. Read more...
Prem Watsa Boosts Money-Losing Hedges on Continued Worry About Market Crash Watsa sees problems around the world and price-value disconnect on many stocks
Canada’s best Warren Buffett (Trades, Portfolio) analog, Prem Watsa (Trades, Portfolio), spoke this week on his “concern about the financial markets” that caused him to increase his hedges on his common stocks even as he posted millions in losses in the portfolio for the first half of 2016. Read more...
Warren Buffett and Prem Watsa Have Dramatic Week With United and BlackBerry Sharp moves in two of their important holdings occur
The travails and triumphs of the market visited two of its mavens this week, when a PR fiasco sunk Warren Buffett (Trades, Portfolio) stock United Airlines (NYSE:UAL) and an unlikely burst occurred in one of Prem Watsa (Trades, Portfolio)’s most stubborn stocks, BlackBerry (NASDAQ:BBRY). Read more...
Prem Watsa Ends Period of Shorting Market With $1.2 Billion Loss After five years of fully hedging, Watsa reverses outlook due to Trump election
One of the premier employers of Buffett-style investing, Canada’s Prem Watsa (Trades, Portfolio), posted $1.20 billion in investing losses Thursday after closing short positions against market indexes when the election of Donald Trump pivoted his outlook from cautious to bullish. Read more...
» More Prem Watsa Articles

Commentaries and Stories

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BlackBerry Posts Surprise Profit in 1st Quarter Despite earnings beat, shares tumble due to revenue miss PRIMECAP Management,Prem Watsa,Jim Simons,First Ea - BlackBerry Posts Surprise Profit In 1st Quarter
Software company BlackBerry Ltd. (NASDAQ:BBRY) (TSX:BB) reported its fiscal first-quarter 2018 earnings on June 23, posting an unexpected profit. More...

BLACKBERRY,Q1,2018,EARNINGS


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Prem Watsa Purchases Largest Position in 5 Years Guru got into potash Prem Watsa - Prem Watsa Purchases Largest Position In 5 Years
Prem Watsa (Trades, Portfolio) added more action to his statements that he felt buoyant about markets with the election of Donald Trump, buying his biggest holding in five years during the first quarter, after announcing earlier in the year that he had removed the full hedges on his portfolio that had limited his annual returns. More...

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Prem Watsa Eliminates 3 Positions in 1st Quarter Guru reports quarterly portfolio Prem Watsa, Warren Buffett,Columbia Wanger, Mario  - Prem Watsa Eliminates 3 Positions In 1st Quarter
Prem Watsa (Trades, Portfolio), commonly referred to as the Warren Buffett (Trades, Portfolio) of Canada, eliminated his position in three companies, Overstock.com Inc. (NASDAQ:OSTK), Baldwin & Lyons Inc. (NASDAQ:BWINB) and Team Health Holdings Inc. (NYSE:TMH), during first-quarter 2017. More...

Sells, 1Q, Canada, PREM WATSA, WARREN BUFFETT, COLUMBIA WANGER, MARIO GABELLI, JANA PARTNERS


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Rating: 5.0/5 (6 votes)

Nuggets From Prem Watsa Investing insights from an investing guru Prem Watsa,Warren Buffett - Nuggets From Prem Watsa
Every March, Prem Watsa (Trades, Portfolio) of Fairfax Financial Holdings Ltd. (TSX:FFH) releases his annual letter to shareholders. More...

GURUS, INVESTING GURUS, PREM WATSA, FAIRFAX FINANCIAL HOLDINGS, WARREN BUFFETT, BOOK VALUE, HEDGING,


  • Currently 5.00/5

Rating: 5.0/5 (4 votes)

Warren Buffett and Prem Watsa Have Dramatic Week With United and BlackBerry Sharp moves in two of their important holdings occur Warren Buffett,Prem Watsa - Warren Buffett And Prem Watsa Have Dramatic Week With United And BlackBerry
The travails and triumphs of the market visited two of its mavens this week, when a PR fiasco sunk Warren Buffett (Trades, Portfolio) stock United Airlines (NYSE:UAL) and an unlikely burst occurred in one of Prem Watsa (Trades, Portfolio)’s most stubborn stocks, BlackBerry (NASDAQ:BBRY). More...

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Destination Maternity Down With Sears and Macy's Prem Watsa of Fairfax Financial has bought shares Prem Watsa,Edward Lampert - Destination Maternity Down With Sears And Macy's
Destination Maternity (NASDAQ:DEST) is the largest manufacturer of maternity clothing in the world. The stock has languished with many other retailers, including two of its distributors, Macy’s (NYSE:M) and Sears (NASDAQ:SHLD). More...

MATERNITY CLOTHING


  • Currently 4.50/5

Rating: 4.5/5 (2 votes)

Soros, Watsa, Icahn Divided on Shorting or Going Long Trump Rally Three top investors see drastically different markets ahead Prem Watsa - Soros, Watsa, Icahn Divided On Shorting Or Going Long Trump Rally
As the Trump rally plods along, investors dispute whether the market is heading for a plunge or toward more blue skies – no less for investors who have billions to put down on their divergent views, like Carl Icahn (Trades, Portfolio), George Soros (Trades, Portfolio) and Prem Watsa (Trades, Portfolio). More...

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Prem Watsa’s Place in the Benjamin Graham Universe This low-profile guru has grown the book value and share price of Fairfax Financial Holdings dramatically over the past 31 years Warren Buffett,Prem Watsa - Prem Watsa’s Place In The Benjamin Graham Universe
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PREM WATSA, WARREN BUFFETT, BENJAMIN GRAHAM, DONALD TRUMP, FAIRFAX FINANCIAL, ALLIED WORLD, BLACKBERRY, INSURANCE, EQUITIES, FIXED INCOME, BONDS, HEDGES, HEDGING, DERIVATIVES


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Prem Watsa Ends Period of Shorting Market With $1.2 Billion Loss After five years of fully hedging, Watsa reverses outlook due to Trump election Prem Watsa - Prem Watsa Ends Period Of Shorting Market With $1.2 Billion Loss
One of the premier employers of Buffett-style investing, Canada’s Prem Watsa (Trades, Portfolio), posted $1.20 billion in investing losses Thursday after closing short positions against market indexes when the election of Donald Trump pivoted his outlook from cautious to bullish. More...

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Prem Watsa Significantly Increases US Bancorp, Buys 4 Stocks Watsa went big on the bank and added for smaller positions in Q4 Prem Watsa - Prem Watsa Significantly Increases US Bancorp, Buys 4 Stocks
Prem Watsa (Trades, Portfolio) devoted most of his fourth-quarter portfolio activity to building onto holdings he already owned, starting only four small new stock positions, the Fairfax Financial CEO reported Monday. More...

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Rating: 5.0/5 (1 vote)

IBM Continues Strong Earnings Growth for Full-Year 2016 Cloud revenues increase as strategic imperatives expand Warren Buffett, Prem Watsa - IBM Continues Strong Earnings Growth For Full-Year 2016
On Jan. 19, International Business Machines Corp. (NYSE:IBM) reported net income of $4.5 billion and diluted earnings per share of $4.73 based on U.S. generally accepted accounting principles for fourth-quarter 2016. These values outperformed fourth-quarter 2015 values, with net income and EPS increasing 1% year over year and 3% year over year respectively. The higher net incomes resulted from higher IBM Cloud revenues. More...

WARREN BUFFETT, PREM WATSA


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Recent Declines Are Opportunity to Buy Fairfax Financial Holdings Shares have fallen on some poor investment decisions, but the company continues to grow Warren Buffett,Prem Watsa - Recent Declines Are Opportunity To Buy Fairfax Financial Holdings
Shares in Warren Buffett (Trades, Portfolio)’s insurance and manufacturing conglomerate Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) have been on a staggering run over the past six months. More...

FAIRFAX FINANCIAL, PREM WATSA, WARREN BUFFETT, BERKSHIRE HATHAWAY, VALUE INVESTING, VALUE, INSURANCE


  • Currently 4.14/5

Rating: 4.1/5 (7 votes)

'Canada's Warren Buffett' Prem Watsa Praises Trump, Forecasts Stock Pickers' Market Watsa makes largest acquisition ever, anticipating a surge in growth Prem Watsa - 'Canada's Warren Buffett' Prem Watsa Praises Trump, Forecasts Stock Pickers' Market
Prem Watsa (Trades, Portfolio) embarked on his “largest and best” acquisition in his company’s 31-year history this week, encouraged by what he views as a pro-business environment ushered in by the election of President-elect Donald Trump. More...

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4 Corporate Bonds That Yield Over 3% Recommending 4 investment-grade bonds Prem Watsa - 4 Corporate Bonds That Yield Over 3%
The bond market has completely changed in the last few weeks. A bond buyer can now find hundreds of blue-chip fixed income products with years. With Donald Trump's election, the bond market took a dive (bond prices dropped and yields rose). More...

BONDS


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Prem Watsa Reduces Defensive Equity Hedges on Trump Election Watsa sees possible rally ahead Prem Watsa - Prem Watsa Reduces Defensive Equity Hedges On Trump Election
Prem Watsa (Trades, Portfolio) announced today that the results of the U.S. election had mitigated his concerns about the economy that prompted his decision to fully hedge his equity portfolio for years. In a press release, the Fairfax Financial Holdings founder said he reduced the hedges and that "there is the potential for a longer term rally in U.S equity markets that reduces the need for the capital preservation protection of equity hedging." More...

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Canadian Warren Buffett Prem Watsa Bought 2 Stocks Watsa was hedged and cautious and made only two portfolio changes in Q3 but has since become more optimistic Prem Watsa - Canadian Warren Buffett Prem Watsa Bought 2 Stocks
Frequently dubbed the “Warren Buffett (Trades, Portfolio) of Canada,” Prem Watsa (Trades, Portfolio) executed two trades in the third quarter, his exclusive portfolio changes. More...

  • Currently 4.50/5

Rating: 4.5/5 (2 votes)

Watsa's Fairfax Sees Profits Wilt on Investment Losses Holding company affected by price fluctuations in 3rd quarter Prem Watsa - Watsa's Fairfax Sees Profits Wilt On Investment Losses
Prem Watsa (Trades, Portfolio)’s Fairfax Financial Holdings (TSX:FFH)(FRFHF) hosted a conference call to discuss its third-quarter results Friday morning. The results were released at market close Thursday. More...

FAIRFAX, CANADA, 3Q, EARNINGS, INSURANCE


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17 Questions With Scott Philips 'We believe the international markets are more discounted, and therefore offer more opportunity' Charlie Munger,Prem Watsa - 17 Questions With Scott Philips
How did you get started investing? More...

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Interview With George Athanassakos Insight from a value investor and director of the Ben Graham Center for Value Investing Prem Watsa - Interview With George Athanassakos
I had the pleasure of having a brief conversation with George Athanassakos, value investor and director of the Ben Graham Center for Value Investing, as he was overseas on business. We talked about his favorite companies, what he looks for in a company and his favorite books, as well as his disciplined appropach. More...

CANADA, IVEY, UNIVERSITY, VALUE, BUFFETT, MARGIN OF SAFETY


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Prem Watsa Increases Stake in Canadian Media Company to 27% Watsa is buying as the price drops Prem Watsa - Prem Watsa Increases Stake In Canadian Media Company To 27%
Investor Prem Watsa (Trades, Portfolio) bought a large chunk of Canada-based media company and owner of Canada’s largest daily newspaper Torstar Corp. (TSX:TS.B) that increased his ownership to 27.4% of the company, he reported Thursday. More...

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