Home Stocks 5 Stocks Titans Warren Buffett And Prem Watsa Both Own

5 Stocks Titans Warren Buffett And Prem Watsa Both Own

7 min read
0
130

<div _ngcontent-c20 innerhtml="

This article originally appeared HERE.

Prem Watsa and Warren Buffett have many things in common. Watsa runs global insurance conglomerate Fairfax Financial Holdings and Buffett oversees the famed insurance holding company Berkshire Hathaway. Both financiers also invest their companies’ “float,” or money an insurer has collected but not paid out in premiums yet.

Warren Buffett, one of the world’s best investors, has several stocks in common with another guru of investing, Prem Watsa. / AFP PHOTO / Mandel NGAN (Photo credit should read MANDEL NGAN/AFP/Getty Images)

They can boast unmatched track records with their respective businesses, too. Buffett has compounded book value at Berkshire Hathaway by 19.1% annually since 1965. Watsa compounded book value at Fairfax Financial by 19.5% since 1985.

Further overlap occurs in their investing philosophies. They take a long-term approach, have a value investing perspective and are devotees of Ben Graham, the founder of value investing. Watsa even named his son Ben in Graham’s honor.

Watsa and Buffett have distinctive contrasts, however. While Buffett has been more prone to buy quality businesses at reasonable prices, Watsa adheres to the Graham notion of finding mispriced bargains.

“The most important principle [Graham] taught us was the margin of safety,” Watsa said in a talk at the Richard Ivey School of Business in 2011. “That whatever you buy, try to buy a dollar for 50 cents. Try to figure out what a company’s worth and try to buy it for 50 cents.”

This advice has steered Watsa into some troubled situations, such as that of smartphone maker BlackBerry (BB). He bought the company when it was down and out after massive competition from Apple’s iPhone decimated its market share. The stock suffered a relentless dive in 2008, falling 68% from a high above $130 in June through the end of the year. By August 2012, it traded around $6.

” readability=”44.908814589666″>

This article originally appeared HERE.

Prem Watsa and Warren Buffett have many things in common. Watsa runs global insurance conglomerate Fairfax Financial Holdings and Buffett oversees the famed insurance holding company Berkshire Hathaway. Both financiers also invest their companies’ “float,” or money an insurer has collected but not paid out in premiums yet.

Warren Buffett, one of the world’s best investors, has several stocks in common with another guru of investing, Prem Watsa. / AFP PHOTO / Mandel NGAN (Photo credit should read MANDEL NGAN/AFP/Getty Images)

They can boast unmatched track records with their respective businesses, too. Buffett has compounded book value at Berkshire Hathaway by 19.1% annually since 1965. Watsa compounded book value at Fairfax Financial by 19.5% since 1985.

Further overlap occurs in their investing philosophies. They take a long-term approach, have a value investing perspective and are devotees of Ben Graham, the founder of value investing. Watsa even named his son Ben in Graham’s honor.

Watsa and Buffett have distinctive contrasts, however. While Buffett has been more prone to buy quality businesses at reasonable prices, Watsa adheres to the Graham notion of finding mispriced bargains.

“The most important principle [Graham] taught us was the margin of safety,” Watsa said in a talk at the Richard Ivey School of Business in 2011. “That whatever you buy, try to buy a dollar for 50 cents. Try to figure out what a company’s worth and try to buy it for 50 cents.”

This advice has steered Watsa into some troubled situations, such as that of smartphone maker BlackBerry (BB). He bought the company when it was down and out after massive competition from Apple’s iPhone decimated its market share. The stock suffered a relentless dive in 2008, falling 68% from a high above $130 in June through the end of the year. By August 2012, it traded around $6.

Let’s block ads! (Why?)


Source link