Fairfax Financial Holdings (TSX: FFH) has not only been a strong performer-it has been a market reinforcement machine. Despite the actions in the vicinity of all time, I believe that this share still offers fascinating benefits for long -term investors. This is why it is worth your attention, even after such a huge run.
Crush the market – year after year
Fairfax has built up an extraordinary track record. In the past decade, the company has yielded an annual return of 17.3%, making an investment of $ 10,000 in around $ 49,290. The wider Canadian market, on the other hand – as represented by ISHARES S&P/TSX 60 Index ETF – Only 11.7% returned in the same period and grew the same $ 10,000 to around $ 30,280.
Even more impressive, in the past five years, Fairfax shares has exploded with composite annual returns of 47%. An investment of $ 10,000 in 2020 would today be worth around $ 69,600, which far exceeded the annual return of 16.4% of the market, which grew to only $ 21,370.
So what does this profit ensure? It is not lucky – Fairfax is executed brilliantly over several fronts.
Multiple growth engines shoot
The company’s core and victim (P&C) performs exceptionally well, with strong insurance profit that a Rock-Solid Foundation offers. In the first half of 2025, Fairfax reported net premiums of US $ 14.1 billion – an increase of 6.8% year after year. The net insurance revenues grew by 4.3%and reached US $ 12.6 billion.
But the power of Fairfax does not stop at the insurance. The diversified portfolio plays the benefits of higher interest rates, which means that almost US $ 1.1 billion in interest and dividends in just six months – an increase of 4.6% year after year.
The value of value-oriented capitarian task strategy also contributes to the profession: the company does not pay too much and invests in opportunities that offer an advantage in the long term. Here is an example: the recent acquisition of an interest of 33% in the French insurer Albingia to further expand worldwide.
All this supports the consistent growth of the book value per share, which has risen by 150% in just five years – a solid indicator for making intrinsic value.
Strong financial data, room to run
The financial position of Fairfax is as robust as always. The company has an A-credit rating from S&P, has more than US $ 3.0 billion in cash and tradable effects and has an extra US $ 1.9 billion in investments in employees and non-insurance companies.
With around $ 2,400 per share today, Fairfax may not look cheap at first sight. But analysts make the real value of the share closer to $ 2,669, suggesting that a discount of approximately 10% (or about 11% an advantage of the current levels).
For a company with this type of consistency, balance strength and long-term performance, that is a rare king of all time.
Investor collection meals: a purchase on strength. Add weakness
Yes, Fairfax has already achieved incredible returns. But this is not a case of ‘you missed it’. With disciplined management, global expansion, rising investment income and a fort -balance, Fairfax still has room to grow.
Long -term investors can now consider starting a position, in particular on a tax -free savings account or registered pension savings plan for tax -efficient composition. Some platforms, such as WealthSimple, offer the possibility to buy partial shares without committee fee. If the market withdraws, it can offer a golden opportunity to add weakness.
Fairfax is not only a first-class Canadian stock it is a first-class company. And despite the actions near his highlights, I still think it’s a buy.
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