Fairfax Financial Bets on Deflation Thesis

Prem Watsa, Chairman and CEO of Fairfax Financial, has made a bold bet on falling prices over the next decade according to an article in The Wall Street Journal. Fairfax Financial is an insurance company based in Canada which many have compared to Warren Buffett’s Berkshire Hathaway due to Mr. Watsa’s impressive long term track record. Fairfax posted very strong results in 2007 and 2008 due to large gains in equity hedges and credit default swaps that were taken based on Mr. Watsa’s correct reading of the economy ahead of the Great Recession. Read this article for more details.

Prem Watsa and Warren Buffett Disagree on Inflation

Prem Watsa, Chairman and CEO of Fairfax Financial Holdings, has often been referred to as “Canada’s Warren Buffett” due to his successful insurance and investing track record. However, in a recent interview with canada.com, Mr. Watsa expressed very different views regarding inflation compared to Warren Buffett’s recent statements on the subject. A few excerpts from the interview appear in this article.


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