Published on 20 Nov 2023 on Insider Monkey via Yahoo Finance
In this piece, we will take a look at the ten stocks that Prem Watsa just bought and sold. If you want to skip our introduction to Mr. Watsa, his hedge fund, and the latest stock market news, then take a look at 5 Stocks Prem Watsa Just Bought and Sold.
Prem Watsa is one of the lower profile fund bosses in the industry. A graduate of the Indian Institute of Technology and the University of Western Ontario, he was born in India and is a classic example of the potential of capitalism to turn one from rags to riches through dedication and the right business decisions. After graduating with an MBA in Canada, Mr. Watsa jumped into the financial world and started his stint at an insurance company. Soon after beginning his finance career, he started his own finance company and acquired an insurance company to rename the new firm Fairfax Financial. The term 'Fairfax' refers to 'fair, friendly acquisitions' and according to Insider Monkey's research, the firm had an investment portfolio worth $1.8 billion as of Q3 2023 end. This marks a sizeable drop over the $3.9 billion that the portfolio was worth as of September 2022.
Prem Watsa's firm, Fairfax Financial Holdings Limited was officially set up in its current form in 1985. The firm's shares are also traded on the Canadian stock exchange under the ticker Fairfax Financial Holdings (TSE:FFH.TO). Being publicly traded is an integral part of Fairfax's financial philosophy and strategy since the firm seeks to deliver a minimum of 15% growth in its book value per share over the long term. Book value per share is defined as a firm's net asset value, i.e. its liabilities subtracted from its assets, per unit of outstanding stock. It is a commonly used financial metric that allows investors and analysts to analyze the worth of a firm or the money that is available to investors in case of a liquidation. Fairfax describes itself as being focused on the long term, and the firm touts that it has written a whopping $229 billion in insurance premiums over the past 37 years.