FFH [Archive]

**goodness0001** Thu Jun 22, 2006 8:04 pm

FFH
Any opinions on Fairfax Financial? They have a book value around $160 per share and over $400 dollars per share in cash and now trade at $92/sh

They got in trouble over the past couple of years with accounting and a couple of bad investments. Do you think they have had a bump in the road of their otherwise great track record?

**jmzou** Fri Jun 23, 2006 12:28 pm

z:The Many Similarities of Fairfax Financial (FFH) to Enron.
http://www.stocklemon.com/03_27_06.html
"Stocklemon believes that the end or Fairfax in near. The company seems to be in the middle of a perfect storm of troubling issues.

1. The SEC has subpoenaed Fairfax about trading in its own security

2. The SEC has subpoenaed various third parties including Fairfax's auditor.

3. The company is late to file its annual report and has delayed its conference call

4. Fairfax bond rating had gotten dumped on by rating agencies.

"

**dahhuilaudavid** Sat Jun 24, 2006 2:34 pm

A lot of superinvestors believe in FFH, and so do the board members of BRK MSN board.

Please visit: http://groups.msn.com/berkshirehathawayshareholders/general.msnw?action=get_message&mview=0&ID_Message=22127&LastModified=4675578124780196533

FFH is a tough one for me.... so, I couldn't comment much.

Happy investing,
David

**blast_investor** Sun Jun 25, 2006 12:54 am

This stock FFH is heavily into derivative transactions.

Derivative Risk is potential bomb that can destroy value quickly, particularly for a focused portfolio.

It is very difficult to understand the balance sheet or fundamentals with large derivative transactions. My take on those financial stocks including FFH is: avoid.

My approach is: If I don't understand business, just avoid and focus on what I understand.

link: Derivative Risks of Financial Stocks
http://www.blastinvest.com/article/03_28_2005.htm

**dahhuilaudavid** Sun Jun 25, 2006 4:01 am

Thank you Blast_Investor.... I agree with you. It is too hard for me.... that's why I'm just looking and following, but not investing in FFH... :wink:

With Total asset : Equity = 10, anything wrong in the next 2 years might destroy FFH.