Fairfax Financial Holdings Ltd Shs Subord.Vtg
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
CAD 2,843.00 | Wrr | Yvlkkln |
Higher Interest Rates Are Boosting Fairfax
Business Strategy and Outlook
While its primary business is insurance, Fairfax is in some ways more of an investment fund. Chairman and CEO Prem Watsa has a long history of bold investment bets and has shown a willingness to be unorthodox when it comes to portfolio construction. As a result, compared with other insurers, the company's results tend to be driven more by results on the investment side. We're somewhat skeptical of this approach, as we believe disciplined underwriting is a more reliable path to long-term value creation for insurers, and Fairfax's underwriting record is relatively poor.