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Investing Specialists

Two Conviction Purchases and a Big Sale at Fairfax

This Ultimate Stock-Picker continues to make bold moves in its equity portfolio.

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By Chris Blumas | Stock Analyst

Following up on last week's theme of looking at the holdings, purchases, and sales of the four insurance companies on our Investment Manager Roster, we've taken a much deeper look at the moves made by  Fairfax Financial (FFH) during the second quarter and have come away with several ideas we believe investors should consider investigating further.

Unlike the three other insurers on our list of top managers-- Berkshire Hathaway (BRK.A) (BRK.B),  Markel (MKL), and  Alleghany (Y)--Fairfax has been aggressively purchasing and selling securities in its equity portfolio since the start of the third quarter of last year. As you may recall, the company flew in the face of fear during last year's fourth quarter, removing the hedges protecting its stock portfolio and investing more than $1 billion in U.S. equities. Fairfax not only established new positions in  Kraft Foods (KFT),  Intel (INTC),  General Electric (GE),  Magna International (MGA), and  Wells Fargo (WFC), but also significantly increased what had been existing positions in  Johnson & Johnson (JNJ) and  Dell (DELL).

The Morningstar Ultimate Stock-Pickers Team does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.