Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Canada's Buffett optimistic on India?
Fri, 5 Jun Pre-Open

Many of you must have heard very little about Mr Prem Watsa. Here is bit about him.

Prem Watsa, a legendary value investor of Indian origin is popularly known as the 'Canadian Warren Buffett. Mr Watsa is chairman and chief executive of Toronto based firm Fairfax Financial Holdings. As per an article in Gurufocus, Mr Watsa has delivered a 5-year cumulative return of 176%, versus 12.2% by the S&P 500. In 2008, when the major markets were witnessing pressures, he could yet achieve 21% return for his clients versus US benchmark indices witnessing a loss of 37%.

As per an article in The Times of India, this value investor is looking to invest in India, with a kitty of around US$ 1 bn through its firm Fairfax India. The firm targets to invest in 5-7 businesses. Mr Watsa has high hopes on the Narendra Modi government and hence believes India has strong long term investment prospects. However, he has some predefined criteria and is looking to invest only in those businesses which can match up to his investment philosophy.

Being a value investor, he is looking to invest from a long term perspective. Hence, he is looking for companies where the promoters are honest, have long term track record, and are in for the long term. Mr Watsa's inclination is for such companies where the promoters believe in building the business and do not want to sell and exit the business.

Interestingly, Mr Watsa is not keen on e-commerce, since he does not find the valuations appealing. Instead he focuses on services and brick-and-mortar outfits. Readers would recall, Equitymaster too has been warning investors of sky-high valuations of these loss making entities.

These are important lessons that investors should take from Mr Watsa. One should look for companies that have durable economic moats and a sound management. As long as the companies are well-managed and have strong future prospects then one need not worry about the stocks they have as part of their portfolio.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Canada's Buffett optimistic on India?". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.