Jeffrey Stacey of Stacey Muirhead Capital Management updated his investment thesis on Fairfax India Holdings (Canada: FIH.U) at Best Ideas 2023.
Jeff originally presented Fairfax India at Best Ideas 2022.
Thesis summary:
Fairfax India’s stock price declined 2.6% in 2022, but intrinsic value has increased modestly in Jeff’s judgment. As such, Jeff believes the company is still an attractive investment opportunity.
Fairfax India is an investment holding company whose objective is to achieve long-term capital appreciation by investing in public and private equity securities and debt instruments in India. Fairfax Financial owns 42.2% of shares outstanding, while OMERS owns 14.7%. Management and investment advisory services are provided by Fairfax Financial, which has a successful long-term operating record in India. Some the largest investments made by Fairfax India include the Bangalore International Airport Limited, the IIFL group of companies, Sanmar Chemicals Group, and CSB Bank.
Fairfax India trades at a ~35% discount to book value per share. Jeff considers book value per share as a rough but understated proxy for intrinsic value. Fairfax India has been actively buying back shares to take advantage of this discount, having purchased about 7.6% of shares outstanding since the end of 2020.
Given the above-average long-term growth potential of India, a portfolio of public and private investments with solid economic prospects and reasonable valuations, a market price at a significant discount to both book value and intrinsic value per share, and an active and accretive share repurchase program, Jeff believes Fairfax India remains a compelling investment opportunity.
The full session is available exclusively to members of MOI Global.
Members, log in below to access the full session.
Not a member?
Thank you for your interest. Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:
About the instructor:
Jeffrey Stacey is the founder of Stacey Muirhead Capital Management Ltd. and he has over 35 years of investment industry experience. Jeff has an Honours Bachelor of Business Administration degree from Wilfrid Laurier University and is a Chartered Financial Analyst.
Jeff has been involved in many charitable and board activities throughout his career. He has served on several investment committees including for two Canadian universities. In addition, he has served on the advisory boards for two university student managed investment funds.
Jeff is married and has two children. Personal interests include hiking, fitness, reading, travelling, and playing drums.
About The Author: MOI Global Editorial Team
The MOI Global Editorial Team, led by John Mihaljevic, CFA, includes community builders, event organizers, writers, editors, research associates, security analysts, and fanatical member support advocates. Our sole purpose is to serve the members of MOI Global as well as we possibly can in order to help them learn, invest intelligently, and build lifelong friendships with like-minded people.
Who is MOI Global? In recent years, The Manual of Ideas has expanded to become more than simply “the very best investing newsletter on the planet” (Mohnish Pabrai). We are now a thriving global community of intelligent investors, connected through great ideas, thought-provoking interviews, online conferences, live member events, and much more.
Members of MOI Global enjoy complimentary access to a growing array of resources and content related to the art of intelligent investing. Members also enjoy preferential access to selected offline events as well as exclusive access to other events hosted by MOI Global, including the Zurich Project Summit, the Latticework Conference, and Ideaweek.
More posts by MOI Global Editorial Team