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Stocks A to Z / Stocks F / Fairfax Financial (FFH)
No. of Recommendations: 1
Tarrifs may not have a direct impact on Fairfax. However some of its investee companies may be adversely affected.
But Canadian stock markets may tumble dragging Fairfax along too. There could be a buying opportunity in the days ahead.
What do you think would be a great price to buy?
No. of Recommendations: 1
Canadian stock markets may tumble dragging Fairfax along too. There could be a buying opportunity in the days ahead.
What do you think would be a great price to buy?
I think the current price is reasonable, and lower prices would be great, too. I don't think Fairfax is affected by the tariff threat very much. It's insurance businesses on both sides of the border should be unaffected, and most of its really big investments (Eurobank, Fairfax India and the Bangalore airport, Digit insurance, the Canadian mattress company, Bauer hockey equipment, the mining businesses, etc.) will be fine.
I guess the 2 most vulnerable would be the shipping business (Poseidon), if there's a trade war (which I doubt), and Recipe, the Canadian restaurant business, would be hurt by a severe recession in Canada, which high tariffs might well provoke.
But all told, I think a general price drop would be a buying opportunity.
dtb
No. of Recommendations: 2
I think even Poseidon (the Sokol-lead company previously known as Atlas and before that Seaspan) will be fairly well protected due to the extremely long term nature of their contracts. They don't benefit from short term booms and they aren't as vulnerable to short term busts.
Of all the major investments at Fairfax, Stelco would have been the one that would have traded down a lot on steel prices and then a lot more on tariff threats. Luckily, Fairfax and Kestenbaum sold Stelco to Cliffs at what looks like a perfect moment.
No. of Recommendations: 1
Of all the major investments at Fairfax, Stelco would have been the one that would have traded down a lot on steel prices and then a lot more on tariff threats. Luckily, Fairfax and Kestenbaum sold Stelco to Cliffs at what looks like a perfect moment.
That’s for sure, dodged a bullet. Cliffs is down by half since it bought Stelco, probably mostly because steel prices are down a lot, but with the talk of a 25% tariff on imports to the USA, Cliffs shares are up 18% today.
Fairfax received shares of Cliffs as partial payment for the sale of Stelco - it will be interesting to see whether they held onto them or not.
“President Trump will do what President Trump wants to do. He has a plan, and I will play accordingly,” Goncalves said. “I’m a big boy. I bought Stelco knowing that Stelco is in Canada. And you know what? America first.”
