TOP STOCK UNDER ATTACK! BUY MORE? SHORT REPORT! FAIRFAX FINANCIAL (FRFHF)
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- Опубликовано: 1 июн 2024
- One of my top holdings, Fairfax Financial (FRFHF) is coming under attack from a short seller report! What should I do? My thoughts...
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Fairfax is one of my top positions, so here's my response to the short report from Carson Block's Muddy Waters. I tried to keep a level head with my analysis of the report, and I encourage your feedback. I will continue with my analysis of Fairfax and other compelling ideas at www.unrivaledinvesting.com. Thank you to all the UNRIVALED INVESTING subscribers that keep this channel going!
Short attack is one of the major risk of holding Canadian stock. Not too long ago, Brookfield Infrastructure (BIP) got short attacked and crashed, but bounced right back. Only those who sell at the bottom loses.
yes, and it is so rigged and precitable what happens. They make some money on the 10-20% drop, and move on, not disclosing that they have done so. Fundamentals almost dont matter for these hit attacks. Its almost like printing money. Maybe Chanos should have changed to publishing hit pieces and selling the short term gain instead of doing fundamental analysis of companies like TSLA or Nvidia. It‘s a weird market
Thanks Daniel. For anyone consider becoming a member, I would highly recommend. I’ve been a member for a year and have learned a lot from Daniel and other more experienced members than myself
Muddy Waters don’t care if they made mistake. They just saw an opening to spin it enough to drop the price enough for a short. Notice they waited until price was up.
Thanks for the video. Also a holder of fairfax!
Hi, thanks for the update. Any way to attend their earnings call via a webcast link from the company? Would be very interesting to see the call!
Good job. Well done sir.
Thanks Daniel
Great video Daniel!
Would you know the rational behind Fairfax buying a gold mine ?
Fairfax’s largest equity holding is Eurobank. Market value today is $2.5 billion. Carrying value at Sept 30, 2023 was $1.8 billion. For this holding, Fairfax’s book value is UNDERSTATED by $700 million (excess of MV to CV). Book value at Fairfax is also way understated for both Thomas Cook India and Fairfax India (MV is much higher than CV). My math says BV is understated by about $1.3 billion (this will change slightly when Q4 earnings are released - as CV will be a little higher). Where are these holdings discussed in Muddy’s report?
it was obviously a rhetorical question, but let me answer it anyway: Because it wouldnt have suited his narrative and he is a slimeball;)
@@johnlayman7466 who's the slimeball?
Regarding Recipe, wouldn't it make sense for Fairfax to mark it down for tax purposes?
This is sounding very cool! =)🔥
Very impressive Daniel!
Glad you like it!
23:15 you meant Berkshire instead of Fairfax right?
Correct! Thanks for calling out
Thanks, Mr. Watsa is a great Canadian with Canadian standards of integrity. ❤
I wish i hadnt sold my Fairfax shares back when theh did the modified dutch auction
Is Muddy Waters buying on the long side after the dip? 😊
Hey Daniel, it looks like this company has traded single digit PE since March of 21. Why so low?
Misunderstood.
I like your approach to the short report and history of FRFHF. I'm not too familiar with FRFHF because I figured there is no reason to pick it over MKL. MKL appears to have operating businesses of higher quality and superior investment returns. What are your thoughts?
Higher quality? What about their latest underwriting combined ratio?
The combined ratio relates to the insurance buisness. I pointed to the operational buisness and investment arm.
@@SwaringeUkluk sorry missed that part. Has MKL compounded in the same range as Fairfax historically?
P.S. I do think the insurance operations are an important engine though and consider MKL combined ratios problematic. One of the issues causing the ratio was pointed out as being related to telematics which is in the process of being modernized.
In the last few years, Fairfax has significantly out performed on the investment side (i.e. didn't have as significant losses with higher rates, etc.)
Great video! I learned a lot and appreciated your level head.
Thank you! Glad it was helpful!
me too. Shortseller report happened to one of my holdings sometime as well. Was a greedy, short-term oriented attack that was all forgotten about after a year..
The only thing i think is at risk is the TRS here. Leverage and no liquidity can be a bad recipe.
EXCO is a public company in canada and trades on TSX. I am invested and they are a profitable debt free company.
It is public, but the financials are not. Correct me if I'm wrong.
They own EXCO Resources not the EXCO listed on the TSX@@unrivaled
Hi Daniel. I'd like to have your take on fairfax india.
Need to sign up at www.unrivaledinvesting.com for that ;)
I'd like to take a moment to personally thank MW for "smoking Daniel out" and if nothing else, letting the cat out of the bag. ☕️🐸
All joking aside, does Interactive Brokers allow Fractional Shares in Fairfax for mere mortals with less than nine digits to build a position? Thanks, Daniel!
Appreciate all you do.
Thank you for the kind feedback. IB does have a fractional share offering, but not sure if Fairfax is included. You'll need to call them up: www.interactivebrokers.com/mkt/?src=unrivaledNPY2&url=%2Fen%2Findex.php%3Ff%3D1338
I would say, sell now and buy back later at a better price.
👌
I'm not sure about fraud, but I've never understood Fairfax's investments.
Who is behind Muddy Waters? Big picture is Fairfax is extremely well position in India and across world with Insurance subsidies. Fairfax has potencial to be valued between 200 billions to 500 billions by 2045
Objective of smart shareholder is to buy in next 5 years as much as possible for cheap as possible.
Just saying...
To rebut a few points: take a look at Atlas vs. comps which wasn't mentioned in the report. Had it not been taken private, one of his biggest 13F holdings would have been down quite a bit years after the initial investment. As for the argument that this is his legacy, he made a decade of mistakes in his 60s when he should have learned from a lifetime of investing. He may have worked with John Templeton, but his track record sure doesn't show he is in the same league. I don't think Fairfax is a fraud, but I also don't think they are all that competent.
ahh, so he made a mistake, his legacy is gone? Charlie Munger made an investment at Alibaba close to the top, and later called it „his biggest investing mistake“. So he made that close to his passing, at a really old age. According to your logic, he should have no longer made these mistakes, because he „should have learned from decades of investing.“ Come on pal, lets be real. Making mistakes is part of the game, no successful investor has a flawless track record. In fact, it was John Templeton who said even the best of the best are probably wrong 50% of the time in this business. So I think it‘s a really lame argument
B.S. just head in the sand
"Promosm"