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  5. FFH: I have a starting position in IFC and I was planning to add. [Fairfax Financial Holdings Limited Subordinate Voting Shares]
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Investment Q&A

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Q: I have a starting position in IFC and I was planning to add. However, I notice that FFH has recovered nicely from 2020 and has significantly outperformed IFC since then. So I am wondering if FFH is the better investment. I would appreciate your comparison and recommendation. Thank you.
Asked by Dennis on March 13, 2025
5i Research Answer:

FFH had a big bounce when 'value' stocks came back into vogue post-pandemic. One-year performance is similar (31% FFH vs 28%) but IFC has outperformed this year so far (9% vs -3%). FFH is cheaper, but its earnings are highly volatile based on its M&A activity. IFC has a higher dividend yield and is marginally larger. Growth is quite hard to predict for FFH, but if we look at consensus estimates then IFC is expected to have faster earnings growth over the next couple of years. Both have shown very strong earnings growth since 2019. FFH can be a frustrating stock at times. IFC is showing better momentum now. We would consider them fairly different due to FFH's holding company structure and investment activities. Today, we would give the edge to IFC for a growth-focused investor. 

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