Why Doesn’t Fairfax Financial Keep Pace?

Does anyone know why Fairfax Financial’s market value (FFH-T) has not kept pace with its book value?

From what I can gather, it looks like an amazing business.

Selling at book value, if you buy it, you get a company recording respective record level profits, but you get the insurance company for free because it seems to be selling at the price of its net assets.

Am I right in assuming that this business is selling close to book value?

And if that’s the case, does anyone know why?

Is it that far under the U.S. radar?

I am just starting to research this business, so if anyone is willing to share what they know I’d appreciate it,


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Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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2 Responses

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  2. Jeff says:

    This is the same company that emulates Berkshire Hathaway isn't it. From what I understand they just made a join purchase of United States Gypsum. If they are selling at or below fair market value they just may be the next wonder company looking forward 30 years from now. What is their market cap, it would be interesting to look back and see when BRK.A started getting noticed as it might just be a matter of time before Fairfax gets the recognition it deserves.

  3. Andrew Hallam says:

    I think you might be right Jeff. This is going to be a company to watch our for in the future. There's no doubt that Prem Wasa (of Fairfax) is an amazing investor who has the courage to zig when markets zag. Just looking at how he has made a killing on book value for Fairfax over the past few years shows this.

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