Under the leadership of David Sokol as Chairman and Bing Chen as CEO and with the acquisition of APR Energy, we expect that the recently re-named Atlas Corp. (ATCO) (formerly Seaspan) will continue to be a significant driver of shareholder value over the long term. With the addition of APR, Atlas Corp. has become a holding company that we fully expect David and Bing will continue to build into a compounding machine (think Mid-American 2.0). We are very appreciative of the efforts of Chuck Ferry, APR’s CEO, and John Campion, its founder, before him and we believe Chuck will do

To Our Shareholders:

We had an excellent year in 2019. We earned a record $2.0 billion* and our book value per share increased by 14.8% (adjusted for the $10 per share dividend) to $486 per share. Since we began in 1985, our book value per share has compounded at 19.3% (including dividends) annually, while our common stock price has compounded at 17.8% (including dividends) annually. And our insurance companies are in great shape and growing!

Here’s how our insurance companies performed in 2019:

As you can see from the table, we had combined ratios well below 100% across our major

As of Tuesday, the following long-term dividend payers grant a dividend yield that is much higher than the S&P 500's yield of 1.83%. Therefore, dividend investors may want to consider increasing ownership in these companies.

Annaly Capital

The first company under consideration is Annaly Capital Management Inc. (NLY). Headquartered in New York, Annaly Capital operates as a large mortgage real estate investment trust company.

Based on a share price of $9.38 at close on Tuesday for a market capitalization of $13.41 billion, the stock offers an 11.73% trailing 12-month dividend yield and a 10.66% forward dividend yield. Currently, Annaly

As of Tuesday, the GuruFocus All-in-One Screener found the following stocks have low price-earnings ratios and have been bought by gurus. While some of them are great investments, others need to be checked again, according to the discounted cash flow calculator.

Spectrum Brands Holdings

With a market cap of $3.09 billion, Spectrum Brands Holdings Inc. (SPB) is trading with a price-earnings ratio of 7.1. According to the DCF calculator, the stock has a fair value of $40.13 while trading at about $63.26. The share price has risen 35.23% over the last 12 months and is now 4.87% below the

[url=http://www.gurufocus.com/StockBuy.php?GuruName=Prem+Watsa]Prem Watsa[/url] ([url=http://www.gurufocus.com/StockBuy.php?GuruName=Prem+Watsa]Trades[/url], [url=http://www.gurufocus.com/holdings.php?GuruName=Prem+Watsa]Portfolio[/url]), founder of Fairfax Financial Holdings (TSX:FFH), disclosed last week that he purchased five stocks during the first quarter, including Red Hat Inc. (RHT), a stock owned by [url=http://www.gurufocus.com/StockBuy.php?GuruName=Warren+Buffett]Warren Buffett[/url] ([url=http://www.gurufocus.com/StockBuy.php?GuruName=Warren+Buffett]Trades[/url], [url=http://www.gurufocus.com/holdings.php?GuruName=Warren+Buffett]Portfolio[/url])'s company.

The value investor invests the float at his insurance holding company based in Toronto, often earning comparisons to [url=http://www.gurufocus.com/StockBuy.php?GuruName=Warren+Buffett]Warren Buffett[/url] ([url=http://www.gurufocus.com/StockBuy.php?GuruName=Warren+Buffett]Trades[/url], [url=http://www.gurufocus.com/holdings.php?GuruName=Warren+Buffett]Portfolio[/url])'s model at Berkshire Hathaway (BRK.A)(BRK.B). In the first quarter, a reversal in the market correction of the fourth quarter brought positive investing results to his portfolio. Net gains on investments totaled $724 million for the quarter, with $528.8 million deriving from net

[url=http://www.gurufocus.com/StockBuy.php?GuruName=Prem+Watsa]Prem Watsa[/url] ([url=http://www.gurufocus.com/StockBuy.php?GuruName=Prem+Watsa]Trades[/url], [url=http://www.gurufocus.com/holdings.php?GuruName=Prem+Watsa]Portfolio[/url]) is a well-known investor who runs the Canada-based financial conglomerate Fairfax Financial Holdings (TSX:FFH), which buys whole businesses and uses some of its money to buy common stocks in a similar model to [url=http://www.gurufocus.com/StockBuy.php?GuruName=Warren+Buffett]Warren Buffett[/url] ([url=http://www.gurufocus.com/StockBuy.php?GuruName=Warren+Buffett]Trades[/url], [url=http://www.gurufocus.com/holdings.php?GuruName=Warren+Buffett]Portfolio[/url])’s Berkshire Hathaway (BRK.A)(BRK.B).

While Watsa has, like Buffett, grown the book value of his company at a torrid rate (18.7% since its 1985 inception), he departs from him in some ways in his approach to stocks. While Buffett seeks mostly great companies at fair prices, Watsa has invested in some beaten-up and broken-down securities in recent years. For instance,

Seaspan (SSW). Under the leadership of David Sokol as Non-Executive Chairman and Bing Chen as CEO, we expect Seaspan to be a phenomenal success over the long term. Seaspan provides many of the world’s major shipping lines with creative outsourcing alternatives to vessel ownership by offering long term leases on large, modern containerships combined with industry leading ship management services. Seaspan’s fleet consists of 112 containerships representing a total capacity of more than 900,000 Twenty-Foot Equivalent Units (TEU), with an average age of approximately six years and average remaining lease period of approximately four years, on a TEU weighted basis.

[url=http://www.gurufocus.com/StockBuy.php?GuruName=Prem+Watsa]Prem Watsa[/url] ([url=http://www.gurufocus.com/StockBuy.php?GuruName=Prem+Watsa]Trades[/url], [url=http://www.gurufocus.com/holdings.php?GuruName=Prem+Watsa]Portfolio[/url]) acquired a stake in Canadian steelmaker Stelco Holdings (TSX:STLC) last week through his investment vehicle Fairfax Financial Holdings (TSX:FFH).

Watsa, whose investing style has been compared to that of [url=http://www.gurufocus.com/StockBuy.php?GuruName=Warren+Buffett]Warren Buffett[/url] ([url=http://www.gurufocus.com/StockBuy.php?GuruName=Warren+Buffett]Trades[/url], [url=http://www.gurufocus.com/holdings.php?GuruName=Warren+Buffett]Portfolio[/url]), purchased 12.2 million shares, or about 13.7% or Stelco. He bought the shares from Netherlands-based Bedrock Industries NV, a private equity firm, for C$20.50 per share, near their closing price of C$20.68 on Nov. 19. The price has since declined to C$19.50 at close Monday, down 13.7% for the year.

Hundred-year-old Stelco filed for bankruptcy in 2007 before U.S. Steel bought out the

Prem Watsa (Trades, Portfolio) is often considered the “Warren Buffett (Trades, Portfolio) of Canada” for his record of compounding Fairfax Financial’s book value by 20% annually since 1985 and his view of investing.

As a devotee of Benjamin Graham, the founder of value investing, Watsa historically purchased stakes in large stable companies and held for the long term. Lately, he has shown a penchant for buying wounded companies at low prices and waiting long periods for them to recover. One example is Blackberry, the former smartphone maker that fell from grace in 2011 when

[url=http://www.gurufocus.com/StockBuy.php?GuruName=Prem+Watsa]Prem Watsa[/url] ([url=http://www.gurufocus.com/StockBuy.php?GuruName=Prem+Watsa]Trades[/url], [url=http://www.gurufocus.com/holdings.php?GuruName=Prem+Watsa]Portfolio[/url]), an investor often compared to [url=http://www.gurufocus.com/StockBuy.php?GuruName=Warren+Buffett]Warren Buffett[/url] ([url=http://www.gurufocus.com/StockBuy.php?GuruName=Warren+Buffett]Trades[/url], [url=http://www.gurufocus.com/holdings.php?GuruName=Warren+Buffett]Portfolio[/url]), announced Tuesday that he left the core of his portfolio unchanged while investing in six new positions in the second quarter.

Watsa has more than 80% of his portfolio invested in three stocks, BlackBerry Ltd. (BB), Resolute Forest Products Inc. (RFP) and Kennedy-Wilson Holdings Inc. (KW), and did not buy or sell any of their shares in the quarter. BlackBerry gave Watsa’s investment vehicle Fairfax Financial (TSX:FFH) $159.3 million in losses in the first half of 2018. Shares of the technology company have declined 17% year to

Prem Watsa (Trades, Portfolio), CEO of Fairfax Financial Holdings (TSX:FFH), joined Bloomberg for an interview in May to discuss a range of topics.

The value investing leader commented on his investment in beleaguered smartphone maker BlackBerry (BB), saying he bet primarily on CEO John Chen. Watsa also opened up about investments he regrets and how he handles them.

Part 2 includes Watsa's take on Fairfax's primarily goal of protecting its portfolios that led to aggressive hedges in 2004, deflation, President Trump's economic policies, market valuations, his cash position, his position in Seaspan (SSW) and corporate tax rates.

Fairfax Financial Holdings (TSX:FFH) CEO Prem Watsa (Trades, Portfolio) acquired 24.1% of shipping company Seaspan Corp. (SSW) for his first large purchase of the year.

Watsa obtained 38,461,539 warrants to purchase shares of the company, which have an exercise price of $6.50 and an exercise term of seven years from Feb. 14. Seaspan’s shares traded for around $6.80 on Tuesday, after diving 64% over the past three years. The company also issued to Watsa’s company $250 million in 5.5% senior notes due in 2025.

The holding’s size, at 16.58% of the portfolio, ranks

The broad markets are trading at premium valuations, but there are buying opportunities that exist in different sectors. In the current scenario, a bottom-up approach to investing is likely to work. One stock trades at attractive valuations and can potentially trend higher from current levels in the next six to 12 months.

Seaspan Corp. (SSW), which is an independent containership owner and manager, has declined by 29.3% year to date. Looking at the charts, the company’s stock is trading at the same level as on March 10. This sideways movement in the last six months is a good stock accumulation

Small-cap companies are companies with small market capitalizations. Returns for small caps can be large, but volatile. In 2016, the Russell 2000 Value ETF, which tracks small cap stocks, returned 19.48%, beating the 11.96% return in the S&P 500. One year before, however, it declined 5.71%, lagging the 1.38% return in the S&P 500.

Over 10 years, the two classes have come out about even: The Russell 2000 returned 7.12%, and the S&P 500 Index returned 7.51%.

In Asia, small-cap stocks have underperformed in the last 10 years but have shown indications of rebounding. The MSCI AC Asia ex Japan

During the first decade of the new millennium, the shipping sector was what can only be described as a goldmine. The rise of China as a global trading superpower, an aging fleet and easy access to credit allowed shipping companies around the world to expand rapidly, plowing billions into new vessels that were quickly snapped up on trading routes. The rising demand for transportation capacity also sent spot rates for vessel charters skyrocketing, improving the economics of shippers and making it look as if their rapid expansion was the right course of action. However, the financial crisis exposed these companies

The past year has been negative for Seaspan Corporation (SSW) with some unfavourable business developments coupled with the stock declining by 41%. With Seaspan operating as an independent owner and operator of containerships, sustained sluggish growth in China and other emerging economies has impacted the company growth. Further, the news of Hanjin Shipping declaring bankruptcy also impacted the stock. Long-term charter for four vessels was cancelled as a result of the bankruptcy.

It was therefore not surprising to see the stock declining in 2016. However, the stock has been trading sideways for almost two months now, and the negative news

Seaspan Corporation (SSW), which is an owner and manager of containerships, has corrected by 22% from highs of year to date to current levels of $15.2. This correction is a good opportunity to accumulate this stock with a medium to long-term investment horizon.

I would like to start with the valuations. Seaspan Corporation is currently trading at a trailing 12-month PE of 11.55. Further, the stock is trading at fiscal year 2017 (December 2017) forward PE of 12.8. These valuations are attractive.

The first reason for considering valuations attractive is the company

Seaspan Corporation (SSW), an independent charter owner and manager of containerships, has declined by 16.5% for YTD15. The decline in the stock has been due to weak industry sentiments even as the company’s operating results have been robust.

The first reason to be bullish on Seaspan is the fact that the company has charter backlog of approximately $6.0 billion as of 3Q15. The charter backlog with quality clients ensures that the company’s revenue is steady in the foreseeable future. The charter backlog also ensures that the company’s healthy dividend payout of $1.5 per share will continue.

An indication of the