Yet Another Value Podcast The Fairfax Way with David Thomas $FFH.TO
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Dec 16, 2025 David Thomas, a seasoned business journalist and author of The Fairfax Way, shares insights into the remarkable journey of Fairfax. He delves into the company’s impressive 19.2% annual returns and its evolution in the insurance and investment landscape. David discusses the strategic lessons learned from both successes—like shorting tech—and challenges such as the missteps with BlackBerry. He also reflects on the importance of political contexts in investment decisions and offers a glimpse into the future as Fairfax navigates upcoming leadership changes.
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BlackBerry: A Patient Turnaround Bet
- Fairfax backed John Chen's turnaround attempt at BlackBerry and took an active role in the company.
- The recovery never gained enough momentum despite Prem's patience and willingness to give management time.
Macro Hedges Drove Survival And Gains
- Fairfax made repeated successful macro hedges, notably shorting tech in 2000 and asset-backed securities before 2008.
- Those macro wins materially offset earlier insurance reserving mistakes and preserved capital.
The Costly 2010–2016 Bear Bet
- Fairfax's 2010–2016 sustained bearish positioning cost about $4 billion and taught them harsh lessons.
- They shifted to smarter defensive tools like options to avoid open-ended short losses.
