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Fairfax Financial Holdings Limited Subordinate Voting Shares (FFH)
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Power Corporation of Canada Subordinate Voting Shares (POW)
Q: Hello Team,
Which of these two would you prefer for total return going forward and why?
Thank You,
Barry
Which of these two would you prefer for total return going forward and why?
Thank You,
Barry
5i Research Answer:
We would be fine with either, but would prefer POW. It is cheaper on valuation, and also has a solid operating business. FFH does as well (insurance) but much of its investor sentiment revolves around its ability to do M&A deals. This can make earnings more volatile (when it monetizes a transaction, earnings rise). POW also has a much higher dividend and is outperforming currently.