CEO Watsa Buys US$149M of ‘Ridiculously Cheap’ Fairfax Shares

June 16, 2020

Fairfax Financial Holdings Ltd. announced that Prem Watsa, its chair and CEO, has purchased in the market 482,600 subordinate voting shares of Fairfax for a cost of approximately US$148.95 million.

“At our AGM and on our first quarter earnings release call, I said that our shares are ‘ridiculously cheap,'” Watsa commented in a statement.

“That statement reflected my recognition that in the 35 years since Fairfax began, I have never seen Fairfax shares sell at a bigger discount to their intrinsic value than they have recently,” he added.

“I have now backed up my strong words by purchasing close to US$150 million of Fairfax shares in the market over the last few days, as I believe that this will be an excellent long term investment.”

Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and the associated investment management.

Source: Fairfax Financial Holdings

Topics Mergers & Acquisitions USA

Was this article valuable?

Here are more articles you may enjoy.