Fairfax Earnings: Strong Finish to the Year

Fairfax finished the year on a strong note and continues to benefit from industry and macroeconomic tailwinds. Book value per share, adjusted for dividends, increased 25% for the full year, a metric that we believe highlights how favorable the environment has been for the no-moat company. We are maintaining our CAD 970 per share fair value estimate and see the shares as overvalued right now. We think the current market is overly tied to the positive near-term outlook, and we retain concerns about Fairfax's future given its up-and-down historical performance.