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Fairfax Financial Holdings Limited Subordinate Voting Shares (FFH)
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Berkshire Hathaway Inc. (BRK.B)
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Brookfield Corporation Class A Limited Voting Shares (BN)
Is FFH inexpensive ? Is it a BUY Thanks RAK
With a pile of cash of more than $300B, theoretically, it is possible for BRK.B to purchase either one of these two, that being said, it is not realistic for such deals to happen, largely because both BN and FFH are quite large, and they are not actively seeking buyers. Both have a multi-voting share structure. It is not going to happen. With the cash pile, we think it is much more probable for Mr. Buffet to acquire a small stake in large publicly traded companies than an outright acquisition.
Despite trading at a 52-week high, FFH is trading at only 10.2x Forward P/E or around 1.3x Price/Book, which is not that high compared to the industry’s averages. FFH has demonstrated solid growth in recent quarters and is repurchasing shares, we think FFH still can do well from the current levels.