If you are looking for a Canadian shares that can quietly change the financial future of your family, Fairfax Financial (TSX: FFH) It might be. The name does not get the same buzz as Canadian banks or flashy technical names, but what the fog fog makes up for disciplined execution and long -term composite power. In the past year, shares have risen almost 55%and the performance of the Canadian shares have not been a sign of delay.
About Fairfax
In essence, Fairfax has a global real estate and victim insurance and reinsurance company. This means that it collects premiums, invests the smoother and connects the capital for decades. Where it is striking is how well the both sides of that model has performed lately.
In the second quarter of 2025, Fairfax booked the net profit of $ 1.44 billion, an increase of $ 915 million a year earlier. That growth was fueled by both the profit gain and the hefty investment profits. The insurance activities yielded an insurance profit of $ 427 million with a combined ratio of 93.3%. For context, everything below 100% means that the insurer earns money from its core activities before they are even charged in investment income.
Moreover, Fairfax recorded nearly a billion dollars in investment profits, usually from shares. The book value of the Canadian share per share increased by more than 10%in just six months, even after postponing a substantial dividend of $ 15 earlier in the year.
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This is not a one -off. Fairfax built his reputation on a patient, value -driven investment style under founder and CEO Prem Watsa. The Canadian shares leaned in American treasury for safety, while buying opportunistic shares that it can be worse for years. With more than $ 67 billion in investments in his insurance subsidiary subsidiaries and another $ 3 billion at the holding, Fairfax has a war box with which it can move when opportunities arise. In May it even expanded in Europe and bought an interest of 33% in the French insurer Albingia.
The power of Fairfax lies in its ability to increase intrinsic value per share at a pace that exceeds most financial data. The efficiency of the Canadian shares on equity is approximately 17%, well above many peers. The price-win ratio is less than nine, which suggests that the Canadian shares are still attractive, despite the run-up. That combination of growth, profitability and low appreciation is rare.
Consideration
There are of course risks. Insurance is a cyclical industry and catastrophe losses can achieve the profit in every year. Fairfax’s investment strategy, although successful in the long term, can also create a volatility quarter up to quarter. Currency fluctuations and global macro shocks are always a factor for a Canadian stock with such a wide range.
But Fairfax has consistently demonstrated that it comes down and can appear stronger. The balance is healthy, with more than $ 10 billion in cash and short -term investments. Debt is manageable with less than 26% of the capital, so that there is a lot of flexibility to continue to invest and grow.
What makes Fairfax really attractive for long -term investors is the composite story. The explained goal of Watsa has always been to grow the book value per share per year in the long term in the long term by 15%. Although not every year that Mark touches, the process has been powerful. Book value has more than doubled over the past decade and management continues to reduce the shares in opportunistic, so that the results per share are further stimulated. Add a dividend that has grown over time and you have a recipe for creating wealth that can overstrain generations. An investment of $ 10,000 today would yield a nice little $ 86 every year.
| COMPANY | Recent price | Number of shares | DIVIDEND | Total payout | FREQUENCY | Total investment |
|---|---|---|---|---|---|---|
| Ffh | $ 2,400.00 | 4 | $ 21.59 | $ 86.36 | Annual | $ 9,600.00 |
Bottom Line
Fairfax is not a flashy stock. It does not act on hype or momentum, and it will not double at night. But that’s the point. This is a disciplined composite machine with worldwide reach, strong insurance technical and an investment engine that shoots all cylinders. For families who not only think the next quarter, but over the coming decades, Fairfax can be the kind of anchor broth that builds real generation religion.
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