Watsa typically looks for companies he believes are set to perform well over the long term.
FORBES: Stocks Trading For Less Than David Einhorn And Prem Watsa Paid For Them
Fairfax Financial CEO Prem Watsa doubled down his bet on Research-In-Motion ( RIMM).
FORBES: Prem Watsa Doubled Down on Research-In-Motion, Again
Watsa deserves kudos for participating in the bull market and may prove to be prescient in getting out now.
New investors, who may be dazzled by Watsa's record, should proceed with caution.
Investors Warren Buffett and Prem Watsa have a lot in common.
FORBES: Stocks Warren Buffett and Prem Watsa Have in Common in 2012
Prem Watsa began investing in USG Corp. before the third quarter of 2007.
FORBES: Stocks Warren Buffett and Prem Watsa Have in Common in 2012
The stock has since lost another 90% while Prem Watsa kept buying.
FORBES: Prem Watsa Doubled Down on Research-In-Motion, Again
Like Buffett, Watsa understands how a smart investor can exploit the float.
Prem Watsa bought and sold a small stake in 2007 and 2008.
FORBES: Stocks Warren Buffett and Prem Watsa Have in Common in 2012
And like Buffett, Watsa is known for being a patient investor who often holds his best positions for 5-10 years or even longer.
Like Buffett, whom Watsa admires, Watsa built his financial empire around a solid insurance business, which provided him with a growing float to invest.
The question is, will you follow Prem Watsa into RIMM?
FORBES: Prem Watsa Doubled Down on Research-In-Motion, Again
Watsa can play this reserve two waysas a cushion to offset future underwriting problems, or to add to earnings when and if he deems future risks insignificant.
But Prem Watsa is not an average investor.
FORBES: Prem Watsa Doubled Down on Research-In-Motion, Again
Prem Watsa is apparently full of confidence with RIMM.
FORBES: Prem Watsa Doubled Down on Research-In-Motion, Again
Fairfax's book value per share has risen at a 40% annual rate since Watsa, who started out in the late 1970s as a money manager at a Toronto life insurer, took over in 1985.
This is particularly useful for finding stocks that investors with similar strategies are both finding attractive, such as Warren Buffett and Prem Watsa, or Julian Robertson and his mentee, Chase Coleman.
FORBES: Stocks Both Julian Robertson and Tiger Cub Chase Coleman Own
Whatever the reason, Watsa was one of a small number of investors who disclosed that they had raised their stakes in Research in Motion, makers of the iconic BlackBerry devices, during the course of the third quarter. (Others include Donald Yacktman.) And he has been doing so for a while.
应用推荐