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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello 5i Team
Comparing Fairfax Financial and Intact Financial, both in the Property & Casualty Insurance sub-industry (TMX data), which is the better choice? FFH seems to always in the news about its other investments rather than its insurance business, whereas IFC appears to be solid in its insurance operations
According to a recent Globe & Mail article, IFC could be a potential acquirer of smaller P&C insurance companies, would this also apply to FFH or is FFH more interested in its other investments?
Trisura Group is listed as Specialty Insurance sector. Is it comparable to FFH and IFC, noting its market capitalization is only $380M compared to $12B / $18B for FFH/IFC?
Thanks
Read Answer Asked by Stephen on June 18, 2020
Q: Which of these insurance companies would you buy today? Five year hold.
Thanks
Read Answer Asked by Lawrence on May 29, 2020
Q: Is this transaction a little unethical when the President of Fairfax builds up a 40% position in Torstar and at the same time involved in a private company and now the same company has offered to take it private? This arrangement does not seem to be fair to Fairfax shareholders?

The company that owns the Toronto Star and more than 70 other newspapers agreed to be taken private by two prominent Canadian business families.
NordStar Capital LP, controlled by the Rivett and Bitove families, will acquire Torstar Corp. for 63 Canadian cents a share in cash, according to a statement released Tuesday night. Based on about 81 million class A and B shares outstanding, the deal values Torstar at roughly $51 million. The offer represents a 58 per cent premium to the closing price on Tuesday.
The deal represents the end of an era for one of Canada’s largest newspapers, which has been controlled by a voting trust of several Toronto families for decades. Torstar has been unable to turn around years of steady losses in advertising revenue and circulation. The shares have fallen 77 per cent since the end of 2017.
The proposal has the support of Torstar’s board and its largest independent shareholder, Fairfax Financial Holdings Ltd. Torstar Chief Executive Officer John Boynton is expected to continue in his role following the deal and former Ontario Premier David Peterson will serve as vice chair, the companies said. The deal is expected to close in the third quarter.
Paul Rivett was a senior executive at Fairfax, a Toronto-based insurance and investment holding company, when it built its 40 per cent stake in Torstar’s Class B shares. He announced his retirement from the firm in February.

Jordan Bitove is a partner at private equity firm Spectrum Capital Partners in Toronto. His family was part of the ownership group that brought the Toronto Raptors basketball franchise to the city in the 1990s.
Read Answer Asked by fwb181 on May 27, 2020
Q: Hi 5i! Hope all of you and your families are well and safe.
Myself, being in a enthousiastic investment shopping mode, I'm looking for a BRK.B type of investment in canada. Which do you prefer between FFH, BAM.A, ONEX and why?
Any other suggestions?
Many thanks!
Read Answer Asked by Stéphane on April 06, 2020
Q: Loved your special updates. Please provide your insights as often as possible. Very helpful!

Bought some stocks last week and planning to continue slowly this week. It looks like it s going to be down tomorrow after the Fed announcement...

My wishlist is ready. Fairfax vs Onex, which one do you prefer for long term hold (if you like) or a bit of both. Can you briefly comment on main risks for Onex.

Thank you!
Read Answer Asked by Pierre on March 16, 2020
Q: I am currently overweight the financial sector. I am concerned about the trend to negative interest and the risk of a recession. The odds of market declines are increasing in my opinion.
Protection of capital is more important than income.
We are not supposed to time the market.
Should I put this group in cash ?
The group will be hurt by negative interest rates or am I wrong on this.
Read Answer Asked by Doug on August 19, 2019
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