Trade Call: Hold Fairfax India for Long-Term Growth

4 days ago

Michael Fritzell

"So I personally use some of the parts valuation and I think you should apply 20% discount to that NAV. That's my view. I think people shouldn't be too scared of some of the partial valuations. It's just the fact that if you're buying a company that isn't growing, that isn't paying out dividends, yeah, you can get stuck there for a long time. But in this case, you have like this immense growth tailwinds in terms of the Indian economy and also passenger growth. So I'm very happy to sit on it and if it trades a 20% discount forever, completely fine. I think it's going to grow. The value is going to grow 10% per year if you apply multiple, you know."

Michael Fritzell expresses confidence in Fairfax India despite its current 20% discount to NAV. He highlights the companys strong growth tailwinds, driven by a booming Indian economy and rising passenger numbers, and states his intent to hold the stock long-term, expecting a 10% annual growth in value.

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