Fairfax Financial (FFH-T)

Wonderful company, his favourite in the group. Has owned in past, but not now due to valuation. Near record highs. P&C insurance is very defensive, so it draws crowds when people get panicky in the market and the price gets bid up. Wait for a better valuation.

A bit of a black box. Stock price has done very well the last few years, after having gone nowhere before that. Insurance at the core, and Prem Watsa's done a great job allocating those premiums. Higher rates favours insurers, lower rates the opposite, and he has no control over what the future holds.

If you own it, hold. You may want to investigate succession plans.

Everyone was shorting it in the 2000s, and now it's one of the most favoured stocks on the TSX. Up 13% YTD. He owns it in TFSAs. Helped by global acquisitions. Combined ratio ~94%. Underwriting has improved, costs kept in line. Almost every operation it has is showing profitability.

Estimated PE for this year is about 10x, normal for insurance industry. Has hit a high, but it's one you want to own for the long term. He continues to buy for clients.

Great job growing book value, and with organic growth and underwriting. EPS profile has really improved. The share price looks "expensive", but it trades at only 7.7x PE for 2026, and growing at 18%. More upside.

Darling in the 1990s, then struggled forever. Great comeback.

Has done well, and will probably continue to do so. Well positioned in its space. Also does well in an environment of higher long-term yields, whereas many companies (especially those with elevated debt) flounder. A name like this will insulate you from that.

Good operational management long term. Stock's more than doubled in the last year and a half, and he'd have to dig to find out why. Value, instead of growth, has been in favour for the last 6 months or so. Its counterpart, BRK.B, has also done well (but not doubled).

If he finds an answer, he'll be sure to post it on social media.

Doing everything right. Combined ratios are improving. P&C insurer, big exposure to reinsurance, global & NA. Serial acquirer. Great management team. Advantaged by rising property values. Extreme weather means the risk goes up, and so do the premiums. Earns a lot of investment income on its growing float. Undemanding multiple.

Trading as though there's nothing going on in the market.

FFH is in his Canadian dividend strategy. BRK.B is in his global strategy.

Both are insurance-driven companies that are partly holding companies. Diversified businesses. Breakup NAV (not that they'd ever be broken up) is significantly higher than current share price. And that makes both of these a buy. Both are in the lower-risk category of companies.

Owns shares in company. Founder led with very strong management team. Recent share price weakness created a buying opportunity. Discounted relative to peers. Good alternative to Canadian bank stocks. Would recommend holding for the long term. 

All the insurance names, both in Canada and the US, continue to work. If interest rates do, in fact, go higher, that will only be beneficial for lifecos and other insurers. The chart looks fantastic. Good run, so there is some weakening in the intermediate term.

If a long-term holding, best thing you can do is sit on your hands and do nothing except participate in the DRIP program. Especially if he's right on the broader call of rates being 8-10% in the secular bear market of 2030-40, should be a big tailwind for insurers.

Sits in client TFSAs, where you want Canadian names to get full value of the dividend. Whereas with US or international names, there's withholding tax.

Bottom line here has been pricing power due to all the global warming, which he doesn't see ebbing anytime soon. Combined ratio has declined from 100% to ~93%, a good thing. (CB, which he also owns, is at 88%.) The company keeps the difference from the combined ratio. Global acquisitions. Called in preferred shares, so can now fund business at a cheaper rate. Running on all cylinders, doing exactly as expected of it.