Monday, March 27, 2017

Fairfax India annual shareholder letter

Link to Letter


Fairfax India’s increase in common shareholders’ equity in 2016 was $62.1 million, which raised book value per share, our key performance measure, by 7.9%, from $9.50 to $10.25. During the same period the USD BSE 30 Index was relatively flat.

Fairfax India had excellent growth in net earnings in 2016, largely the result of net unrealized gains on investments of $105 million versus $14 million in 2015, partially offset by lower interest income of $21 million versus $45 million in 2015 (when a larger portion of its funds were in high yielding Indian bonds, awaiting deployment into Indian investments) and a $7 million loss due to foreign exchange versus a $7 million foreign exchange gain in 2015.

Investing in Fairfax India is like investing in Berkshire Hathaway back when it first started up. Prem Watsa is known as the Canadian Warren Buffet.

He is also from India and has the connections to get the best deals in one of the fastest growing economies in the world. Just buy this one, put it in a coffee can and come back in ten years and it will be worth multiples of what it is now.

I am up 22% since buying Fairfax India stock in August of 2016.

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