Fairfax India Holdings Corp (FIH.U-T)

Don't buy. Doesn't like insurance. 

This is Fairfax's India subsidiary. It's cheaper to buy the parent company than FIH. Also buying a country-specific ETF is fine.

India is one of those areas of the world where people talk of the long term story. They are relatively insulated from trade wars. He is caught on the long term India market. It is expensive. He owns SCIF-N.

He's heding his currency, because he expects the Canadian dollar will go down, so he wants cash flow outside the country to hedge this cash flow. He also wants to get rid of some of North American financials. Only 5% of home owners in India have insurance, so there's massive growth. He has faith in Prem Watsa. (Analysts’ price target is $16.75)

India's currency has fallen. Oil pricess have rose (their big product), so inflation is running rampant now. FIU is like a hedge fund for Prem Watsa. So, he'd rather own Fairfax parent company, FFH, than this subsidiary. FIU is mostly infrastructure. He doesn't like how they manage this Indian subsidiary.

It's one of the best ways to make money in India, but are they smart enough to do it? The jury is still out. Prem Watsa is a smart guy, but is a little more volatile than the market. There are more predictable companies to own.

Hold or sell? Prem Watsa is bright and capable. So he’s puzzled that this has failed to gain. India still has big challenges. Inclined to hold and give it some time. If he were way up, might sell some. Betting on Watsa’s ability to navigate investments in India. Lots of opportunity, but lots of history to overcome.

Very interesting. Selling at a reasonable P/E. Prem Watsa knows India as well as who to partner with. India is a growing economy. So, investing with Watsa and Fairfax is a good idea. This is a long-term play, but you must ride future market dislocations. India has an established rule of law, unlike many other emerging economies, so this protects investing to a degree.

He thinks this company is a good stock and a well-run company, investing in infrastructure including the Bangor airport. This is a good long term holding, he thinks.

(A Top Pick July 14/17. Up 5%.) Of all things in Fairfax, this one appeals to him. It gives the ordinary investor a way of getting into India. Also gives them a way of getting into a hands-on situation. Not just a portfolio of Indian stocks, but part of a creation/transformation of companies with some leaning towards environmental satisfying things. You need patience. When dealing with Prem Watsa, you know that you are dealing long-term with something like this. The stock is off a bit at the moment. Not a lot of interest in it.