Adding To Our Portfolio
Dear Partner 👋
As you are reading this, I’ll be high in the sky.
Why? I’m flying from Brussels to Omaha to attend the Berkshire AGM.
This will be the fourth year in a row that I attend the Berkshire AGM.
My schedule looks as follows:
If you’re in Omaha as well, just let me know and you’re very welcome to attend the meetup TJ and I are organizing.
When: Saturday 2 May between 8:15 PM and 10:15 PM
Where: Howard & Fine (inside Moe & Curly’s Pub and Grill - Omaha)
Register here for free:
The Fairfax Way
As this will be the first AGM since Warren Buffett ‘retired’, the big question is how Berkshire Hathaway will evolve from here.
I don’t think there is a next Berkshire Hathaway out there.
However, there are some companies that come close.
A book I recently read? The Fairfax Way.
The book tells the story of how Prem Watsa copied Berkshire Hathaway’s business model and became tremendously successful over time.
When Prem Watsa took charge of Faifax in 1985, the company traded at a stock price of 3.25 CAD.
Today Fairfax’s stock price equals 2,346 CAD.
That’s almost a 1.000-bagger (!).
It’s an understatement saying that Prem Watsa has done a tremendous job at Fairfax.
It’s no coincidence that people call him the Canadian Warren Buffett.
The shareholder letters of Prem Watsa are a must read. You can find them here.
(I am currently reading them on my flight to Omaha).
To conclude, I think Fairfax is an amazing company that will continue to do well in the years ahead.
I estimate the intrinsic value of Fairfax equals 3,000 CAD.
As the current stock price equals 2,340, this implies a discount of 22%.
We would love to buy Fairfax on weakness.
Adding to the Portfolio
Now let’s dive into the three companies we’re buying tomorrow.
