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Stock Analyst Update

Pick of the Week: Fairfax Financial Holdings

We think this insurance conglomerate has promising long-term prospects.

Fairfax Financial Holdings (FFH) receives our highest star rating of 5 stars, meaning that we think the stock is significantly undervalued. (For more on how we rate stocks, click here.)

Below is an excerpt from Morningstar.com's  Fairfax Financial Holdings Analyst Report.

Thesis
Fairfax employs float generated by subsidiaries to fund an investment portfolio that yields excellent long-term returns. In our opinion, Fairfax's ability to acquire stocks and subsidiaries at steep discounts to fair value garners the company a narrow economic moat.