Ayalon Trust Fund (4D) Global Stocks on Fairfax Financial Holdings Limited
Thesis
Fairfax is favored as an insurance compounder because a well-managed insurer can generate value through both underwriting profits and investment of its float. Fairfax has compounded book value at almost 18% annually over approximately 30 years, while its stock has produced a similar long-term return. Its investment portfolio has grown to approximately $66 billion while insurance operations have retained a high level of profitability. The fund increased its stake and considers insurance one of the most promising areas for profitable long-term equity investment.
“we have increased our stake in a number of insurance companies, including Fairfax Financial Holdings(FFH.TO)”