Fairfax Earnings: Positive Momentum Continues

Fairfax continued its recent string of good results in the third quarter. Book value per share, adjusted for dividends, has grown 16% year to date, which gives an indication of the winds the company has had at its back this year. While we appreciate the positives the company is enjoying right now, its historical performance has been increasingly hit or miss over time, and we don’t expect this to change long term. We will maintain our CAD 970 fair value estimate for the no-moat company and see shares as a bit overvalued at the moment.