Investment Q&A

Q: Hi 5i,
I have a small position in Fairfax India holdings. I have made a gain but disappointing for the length of time I have had it. I can still be patient for possibly 5 more years or longer. Would you recommend holding this, or consider ETF's of India holdings that you had recommended in March of this year (ZID or INDY) or other ETF?
Should be on the conservative side of investing.

Thank you for the great service

Q: Do you like this company? As well i have a Itrade account with Canadian dollar and also a USA currency account.
Do you recommend to buy it in the Canadian account or USA because i understand dividend paid in USA currency

Q: I would like to make a small investment in India; now the most populated country on earth. I like ZID that has returned about 81% over the past 5 years, but the market cap is only $122M - is this ETF too small? I like FIH.U with a trailing P/E of 6.23 and market cap of $1.94B, but it has only increased 13% over the past 5 years - can FIH.U only be bought in USD? Would appreciate your thoughts on ZID and FIH.U, or perhaps you have another suggestion regarding investment in India.
Thanks!

Q: To minimize taxation, would you recommend holding FIH.U in a registered or an unregistered account? It appears to be a limited partnership but pays no dividend at this time and would only be subject to capital gains tax. There could always be special distributions in the future.
Thanks!

Q: Emerging markets are getting some attention lately for reasonable valuations.
India is being mentioned as a strong growth country. Many experts suggest US large corps as a better way to invest rather than the corps of the emerging markets .
What are your thoughts and ideas for investment to take advantage of emerging markets as far as actual emerging market etf or etf of large cap US based major exporters/worldwide etf. ?

Q: With book value at $19.65 a share and annual earnings coming in at $3.22 a share as well as share repurchases ..... Could I have your analysis of their year end results including new purchases and positions they took ? ..... Everything looked pretty good to me the question is why isn't Mr. Market impressed ? .....

Q: The Book Value sits at above $19.00 per share. The stock trades just above $12.00. Today FFH announced that it bought some shares from individuals @ 15.29 and issued a warnings about possible future share purchases. Management obviously has to find a way to unlock shareholder value. What is your take on the announcement today.

Q: I have held FIH.U for several years now and although it has snapped back nicely from it’s covid low, it is still well below where it was trading 3 years ago and has for the most part been a disappointment. I’m OK hanging on to it but am also considering tendering to the Dutch auction as a good way to exit. If one were to tender their shares, at what price point between the $12.50 - $15 range do you feel would be the sweet spot where you get the highest price yet still have a high likelihood the shares will end up being purchased by the company?

Q: Hello,
I would like to understand the performance bonus to Hamblin Watsa of 20% over 5 %.. is it operating like the Buffet partnership with the 0/6/25%? Is FIH.U operating like a mutual fund? What are your thoughts on a long term position? What sort of returns should one expect from this? Thank you for your sage advice. Shyam

Q: Gooday 5i team.

I have a small position in FIH and will hold for the long term.

Is there a Canadian listed ETF that has general exposure to India and it's future growth as the World gets back somewhere close to normal post Covid?

Thanks for your help.

Q: Hi,

I've held FIH.U shares for a short while and have done fairly well. I'm a little confused about the tender offer and dutch auction style. For example, it seems like the stock is trading mid-range of the potential purchase price right now.

I have no real reason to sell, unless this is a trading opportunity where the stock could dip below the tender range after the buybacks are complete.

I'd appreciate your thoughts on the tender in general, knowing you can't give specific advise on if I should hold or put my shares in the pool

The shares are in a non-registered account, so would be subject to the dividend tax event if tendered.

Q: Considering adding a small position in my RRSP of FIH. I thought with all the bad news coming out of India this might be on sale, but price action appears to be hanging in on the high side. This would appear to bode well for when India gets Covid under control, thus making it attractive going forward. Your opinion and analysis please.

Many thanks.

Q: Can you please comment on these 3 companies and their prospects going forward. On on their recent earnings/conference calls that happened this week. Pros and cons. Thanks.

Q: Enjoyed your article on year end tax selling,i picked the 9 stocks with the greatest estimated revenue growth for 2021 of these 9 could you pick your top 5 which have the best chance of a turnaround for 2021, could you rank them for growth and risk, thank you use extra credits if needed

Q: Hi Peter

Your opinion on FIH third quarter results please. Is there any hope or better to move on?

Thanks
SK

Q: Thank you for your advice during the current Covid 19 world . I followed it and as a result have weathered it fairly well.... This brings me to what I thought was a good investment pre Covid 19 and what I think is good now..... FIH.U has taken close to a 50% drop and I can definitely see why.... India's headwinds in battling the virus are large and with their population and crowded demographics. It is going to be a tough battle ..... This brings me to the parts of FIH.U ..... For each of the companies invested in how does 5I view their short and mid term prospects ? Using the four largest positions would be adequate for analysis .....For example I know Bangalore airport will survive but it might be a while before there is sufficient air travel to be in the black . And the IIFL investment and it's value going forward confuse me... There was quite a bit of controversy on the company for a while ... ......Also what is their cash position to accumulate businesses in this environment ? And at the end of the last quarter book value was in excess of $14.00 ... Would that still be an appropriate assessment of book value in this Covid 19 environment ? And in relation to it's current gap between price to book does 5I view it as good value ? .... Thank you for the steady advice you have been giving us during this pandemic ......

Q: Sir: I find myself still Down over 40% on SU, FIH.U, MTB, UMPQ and UAL and down over 20% on the others in spite of the recent strong market. So 1. Add to.? 2 sell.? Or 3 Hold.? Thanks for your great insight and valuable advice..........Jim

Q: Sir, I find myself down 25-60 % in ALL of the above companies. In keeping with your BUY MORE, HOLD, SELL SOME or all, I would appreciate your thoughts on the above companies. I have some capital gains to off set so all is not lost- yet. Thanks- JP

Q: Big drop today when rest of market is rebounding. Are you able to speculate on why the selling is happening at such low values ?

Q: Hello Peter and Team,

If the long term thesis is that after this latest crises, companies will diversify outside of China for manufacturing, countries like India should do well. What other countries would do well for long term in your opinion due to this and how would you invest in this thesis? How would you invest in India?

Thanks,

Wes