Prem Watsa: Difference between revisions

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{{Infobox person
{{Infobox person
| name         = Prem Watsa
| name             = Prem Watsa
| image       = Prem Watsa.jpg
| image           = Prem Watsa.jpg
| birth_name   = V. Prem Watsa
| birth_name       = V. Prem Watsa
| birth_date   = {{Birth date and age|1950|8|5}}
| birth_date       = {{Birth date and age|1950|8|5}}
| birth_place = [[Hyderabad]], [[Hyderabad State]] (present-day [[Telangana]]), India
| birth_place     = [[Hyderabad]], [[Hyderabad State]] (present-day [[Telangana]]), India
| nationality = Canadian
| nationality     = Canadian
| occupation   = Businessman, investor
| occupation       = Businessman, investor
| known_for   = Founder, Chairman, and CEO of [[Fairfax Financial Holdings]]
| known_for       = Founder, Chairman, and CEO of [[Fairfax Financial Holdings]]
| education   = [[Indian Institute of Technology Madras]] (B.Tech); [[University of Western Ontario]] (MBA)
| education       = [[Indian Institute of Technology Madras]] (B.Tech); [[University of Western Ontario]] (MBA)
| title       = Chairman and CEO, Fairfax Financial Holdings
| title           = Chairman and CEO, Fairfax Financial Holdings
| awards       = [[Order of Canada]]; [[Padma Bhushan]] (2020); Chancellor of the [[University of Waterloo]] (2009–2014)
| awards           = [[Order of Canada]]; [[Padma Bhushan]] (2020); Chancellor, University of Waterloo (2009–2014)
| website     = {{URL|http://www.fairfax.ca/corporate.htm}}
| website         = {{URL|www.fairfax.ca}}
}}
}}


'''Vivian Prem Watsa''' (born 5 August 1950) is an Indian-Canadian billionaire businessman, investor, and the founder, chairman, and chief executive officer of [[Fairfax Financial Holdings]], a financial holding company based in Toronto, Ontario. Born in [[Hyderabad]], India, Watsa emigrated to Canada in the 1970s and built Fairfax Financial from a small trucking insurance company into one of Canada's largest property and casualty insurance conglomerates. His contrarian, value-oriented investment philosophy — rooted in the principles of [[Benjamin Graham]] — has earned him frequent comparisons to American investor [[Warren Buffett]], with the Canadian financial press often referring to him as the "Canadian Warren Buffett."<ref>{{cite web |title=Prem Watsa — The richest, savviest guy you've never heard of |url=http://www.gadgetsnow.com/tech-news/Prem-Watsa-the-richest-savviest-guy-youve-never-heard-of/articleshow/23016589.cms |publisher=Gadgets Now |access-date=2026-02-24}}</ref> Over the course of his career, Watsa has overseen billions of dollars in investments across insurance, real estate, technology, and natural resources, applying a high-conviction, concentrated portfolio strategy.<ref>{{cite web |title=Prem Watsa's Top 5 Positions Represent 70.19% Of The Total Portfolio |url=https://acquirersmultiple.com/2025/09/prem-watsas-top-5-positions-represent-70-19-of-the-total-portfolio/ |publisher=The Acquirer's Multiple |date=2025-09-07 |access-date=2026-02-24}}</ref> He served as the ninth [[Chancellor of the University of Waterloo]] from 2009 to 2014 and has been recognized with the [[Order of Canada]] and India's [[Padma Bhushan]] for his contributions to business and philanthropy.
V. Prem Watsa (born 5 August 1950) is an Indian-Canadian billionaire businessman and investor who is the founder, chairman, and chief executive officer of [[Fairfax Financial Holdings]], a Toronto-based financial holding company engaged in property and casualty insurance and reinsurance, and investment management. Born in [[Hyderabad]], India, Watsa emigrated to Canada in the 1970s and built Fairfax Financial from a small Canadian trucking insurance company into a global enterprise with operations spanning multiple continents. His investment philosophy, rooted in the principles of [[Benjamin Graham]] and value investing, along with his record of contrarian bets and long-term capital allocation, has led the financial press to refer to him as the "Canadian Warren Buffett."<ref>{{cite web |title=Prem Watsa: the richest, savviest guy you've never heard of |url=http://www.gadgetsnow.com/tech-news/Prem-Watsa-the-richest-savviest-guy-youve-never-heard-of/articleshow/23016589.cms |publisher=Gadgets Now |access-date=2026-02-24}}</ref> Watsa served as the 9th Chancellor of the [[University of Waterloo]] from 2009 to 2014, succeeding [[Mike Lazaridis]].<ref>{{cite web |title=Prem Watsa installed as chancellor |url=http://newsrelease.uwaterloo.ca/news.php?id=5081 |publisher=University of Waterloo |access-date=2026-02-24}}</ref> In 2020, the Government of India awarded him the [[Padma Bhushan]], one of the country's highest civilian honours, in recognition of his contributions to trade and industry.<ref>{{cite web |title=Padma Awards 2020 Awardees List |url=https://padmaawards.gov.in/PDFS/2020AwardeesList.pdf |publisher=Government of India |access-date=2026-02-24}}</ref> As of 2025, Fairfax Financial's 13F portfolio was valued at approximately $2.06 billion, reflecting a concentrated, high-conviction investment approach.<ref>{{cite web |title=Tracking Prem Watsa's Fairfax Financial Holdings Portfolio - Q3 2025 Update |url=https://seekingalpha.com/article/4849585-prem-watsa-fairfax-financial-holdings-portfolio-q3-2025-update |work=Seeking Alpha |date=2025-12-02 |access-date=2026-02-24}}</ref>


== Early Life ==
== Early Life ==


V. Prem Watsa was born on 5 August 1950 in [[Hyderabad]], in the former [[Hyderabad State]] of India (present-day [[Telangana]]).<ref>{{cite web |title=Prem Watsa — The richest, savviest guy you've never heard of |url=http://www.gadgetsnow.com/tech-news/Prem-Watsa-the-richest-savviest-guy-youve-never-heard-of/articleshow/23016589.cms |publisher=Gadgets Now |access-date=2026-02-24}}</ref> He grew up in a middle-class family in southern India. Details of his early childhood and family background are limited in the public record, though it is known that he demonstrated academic aptitude from a young age, ultimately gaining admission to one of India's most prestigious engineering institutions.
Vivian Prem Watsa was born on 5 August 1950 in [[Hyderabad]], in the former [[Hyderabad State]] of India (present-day [[Telangana]]).<ref name="globe">{{cite news |title=Prem Watsa profile |url=https://www.theglobeandmail.com/servlet/story/RTGAM.20060126.rmprem0127/BNStory/specialROBmagazine/?pageRequested=all |work=The Globe and Mail |date=2006-01-27 |access-date=2026-02-24}}</ref> He grew up in a middle-class family in Hyderabad and received his early education in India. Details regarding his parents and family background during his formative years remain limited in public sources, though accounts describe a childhood shaped by the values of discipline, education, and self-reliance that were common in professional Indian families of that era.


Watsa's formative years in India shaped his character and work ethic, attributes he would later bring to his career in Canada's financial industry. After completing his undergraduate studies, he made the decision to emigrate to Canada in the early 1970s, arriving with limited financial resources. The transition from Hyderabad to North America represented a significant personal and professional shift, and Watsa has spoken in interviews about the challenges of establishing himself in a new country. His early years in Canada were spent furthering his education and developing the investment knowledge that would become the foundation of his career.
Watsa's early intellectual development was marked by a strong aptitude for mathematics and engineering, which led him to pursue higher education at one of India's most competitive institutions. His decision to attend the [[Indian Institute of Technology Madras]] (IIT Madras) placed him among a highly selective cohort of students in the country. IIT Madras later recognized his achievements by naming him a Distinguished Alumnus, an honour bestowed upon graduates who have made exceptional contributions in their respective fields.<ref>{{cite web |title=Citations - 1999 Distinguished Alumnus Awards Recipients |url=http://alumni.iitm.ac.in/citations-1999-distinguished-alumnus-awards-recipients/ |publisher=IIT Madras Alumni Association |access-date=2026-02-24}}</ref>


The experience of building a career from modest beginnings in a new country has been cited as a formative influence on Watsa's investment philosophy, which emphasizes careful analysis, patience, and a willingness to take contrarian positions when the evidence supports them. His background as an immigrant and engineer has been noted as distinguishing him from many of his peers in the Canadian financial establishment.
After completing his undergraduate education in India, Watsa emigrated to Canada in the 1970s. The move represented a significant transition — from the academic environment of one of India's premier engineering institutions to a new country where he would have to establish himself from the ground up. It was in Canada that Watsa's interests shifted from engineering toward finance and business, a pivot that would define the rest of his career. His arrival in Canada coincided with a period of significant immigration from South Asia, and Watsa would go on to become one of the most prominent Indian-Canadian business figures in the country's history.<ref>{{cite web |title=The man with nothing to lose |url=http://www.canadianbusiness.com/companies-and-industries/the-man-with-nothing-to-lose/ |work=Canadian Business |access-date=2026-02-24}}</ref>


== Education ==
== Education ==


Watsa received his undergraduate education at the [[Indian Institute of Technology Madras]] (IIT Madras), one of India's premier engineering institutions, where he earned a Bachelor of Technology degree in chemical engineering.<ref>{{cite web |title=Citations — 1999 Distinguished Alumnus Awards Recipients |url=http://alumni.iitm.ac.in/citations-1999-distinguished-alumnus-awards-recipients/ |publisher=IIT Madras Alumni Association |access-date=2026-02-24}}</ref> The rigorous analytical training he received at IIT Madras has been noted as a significant factor in his systematic approach to investment analysis.
Watsa earned his Bachelor of Technology (B.Tech) in chemical engineering from the [[Indian Institute of Technology Madras]], one of the Indian Institutes of Technology established by the Government of India as centres of excellence in engineering and technology education.<ref name="iitm">{{cite web |title=Citations - 1999 Distinguished Alumnus Awards Recipients |url=http://alumni.iitm.ac.in/citations-1999-distinguished-alumnus-awards-recipients/ |publisher=IIT Madras Alumni Association |access-date=2026-02-24}}</ref> His time at IIT Madras provided him with a rigorous analytical foundation that he would later apply to financial analysis and investment decision-making.


After emigrating to Canada, Watsa pursued graduate studies at the [[Richard Ivey School of Business]] at the [[University of Western Ontario]] (now [[Western University]]), where he earned a [[Master of Business Administration]] degree.<ref name="globe">{{cite web |title=Prem Watsa profile |url=https://www.theglobeandmail.com/servlet/story/RTGAM.20060126.rmprem0127/BNStory/specialROBmagazine/?pageRequested=all |work=The Globe and Mail |access-date=2026-02-24}}</ref> It was during his MBA studies that Watsa was introduced to the value investing principles of [[Benjamin Graham]] and [[David Dodd]], an intellectual encounter that would define his entire investment career. The emphasis on buying securities at prices below their intrinsic value, maintaining a margin of safety, and conducting rigorous fundamental analysis became the core tenets of his approach to managing capital. Watsa has served on the advisory board of the Ben Graham Centre for Value Investing, reflecting his continued commitment to the value investing tradition.<ref>{{cite web |title=Advisory Board |url=http://www.bengrahaminvesting.ca/About_Us/advisory_board.htm |publisher=Ben Graham Centre for Value Investing |access-date=2026-02-24}}</ref>
After emigrating to Canada, Watsa pursued graduate studies at the [[Richard Ivey School of Business]] at the [[University of Western Ontario]] (now [[Western University]]), where he earned his [[Master of Business Administration]] (MBA).<ref name="globe" /> It was during his MBA programme that Watsa was first introduced to the value investing philosophy of [[Benjamin Graham]], the economist and investor whose seminal works ''[[Security Analysis (book)|Security Analysis]]'' and ''[[The Intelligent Investor]]'' would profoundly influence Watsa's approach to investment and capital allocation. Watsa has cited his exposure to Graham's principles at Ivey as a transformative experience that shaped his entire professional career. He later served on the advisory board of the Ben Graham Centre for Value Investing, an institution connected to the Ivey Business School.<ref>{{cite web |title=Advisory Board - Ben Graham Centre for Value Investing |url=http://www.bengrahaminvesting.ca/About_Us/advisory_board.htm |publisher=Ben Graham Centre for Value Investing |access-date=2026-02-24}}</ref>


== Career ==
== Career ==
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=== Early Career and Founding of Fairfax Financial ===
=== Early Career and Founding of Fairfax Financial ===


After completing his MBA, Watsa entered the Canadian insurance and investment industry. In 1985, he acquired Markel Financial Holdings, a small Ontario-based trucking insurance company, which he subsequently renamed '''Fairfax Financial Holdings''' — a name derived from the words "fair" and "friendly acquisitions."<ref name="fairfax">{{cite web |title=Fairfax Financial Holdings — Corporate |url=http://www.fairfax.ca/corporate.htm |publisher=Fairfax Financial Holdings |access-date=2026-02-24}}</ref> This acquisition marked the beginning of what would become one of the most significant financial holding companies in Canadian history.
After completing his MBA, Watsa entered the Canadian financial services industry. In the mid-1980s, he acquired control of a small Canadian trucking insurance company, which would become the foundation for [[Fairfax Financial Holdings]]. The name "Fairfax" is an abbreviation of "fair, friendly acquisitions," reflecting Watsa's stated philosophy regarding corporate transactions and his approach to building the company through acquisitions rather than hostile takeovers.<ref>{{cite web |title=Fairfax Financial Holdings - Corporate |url=http://www.fairfax.ca/corporate.htm |publisher=Fairfax Financial Holdings |access-date=2026-02-24}}</ref>


Under Watsa's leadership, Fairfax Financial grew through a strategy of acquiring undervalued insurance companies and other businesses, applying disciplined underwriting principles while investing the resulting insurance float using value-oriented investment strategies. The model closely paralleled the approach used by [[Berkshire Hathaway]] under Warren Buffett, a comparison that became a recurring theme in media coverage of Watsa and Fairfax.<ref>{{cite web |title=Prem Watsa — The richest, savviest guy you've never heard of |url=http://www.gadgetsnow.com/tech-news/Prem-Watsa-the-richest-savviest-guy-youve-never-heard-of/articleshow/23016589.cms |publisher=Gadgets Now |access-date=2026-02-24}}</ref>
Under Watsa's leadership, the small insurance company was systematically transformed into a diversified financial holding company. The growth strategy centred on acquiring undervalued insurance and reinsurance companies, improving their operations, and deploying their investment float — the pool of premiums held before claims are paid — into long-term value investments. This model bore a structural resemblance to the approach employed by [[Berkshire Hathaway]] under [[Warren Buffett]], a comparison that financial journalists and analysts have frequently drawn.<ref>{{cite web |title=Prem Watsa: the richest, savviest guy you've never heard of |url=http://www.gadgetsnow.com/tech-news/Prem-Watsa-the-richest-savviest-guy-youve-never-heard-of/articleshow/23016589.cms |publisher=Gadgets Now |access-date=2026-02-24}}</ref>


The company grew steadily through the late 1980s and 1990s, with Watsa acquiring a series of insurance subsidiaries across Canada and the United States. This expansion transformed Fairfax from a niche trucking insurer into a diversified property and casualty insurance holding company with operations spanning multiple continents.
=== Growth of Fairfax Financial ===


=== Growth and Expansion of Fairfax Financial ===
Through the 1990s and 2000s, Fairfax Financial expanded significantly through a series of acquisitions in the insurance and reinsurance sectors. The company acquired operations in the United States, Europe, and Asia, building a global footprint that extended well beyond its Canadian base. Key acquisitions over the years included insurance underwriting businesses and reinsurance operations that provided Fairfax with a diversified premium base and significant investment capital.


Fairfax Financial's growth accelerated through the 1990s and 2000s as Watsa pursued a series of acquisitions that expanded the company's geographic and operational footprint. The company acquired significant insurance operations in the United States, Asia, and other international markets, building a portfolio of subsidiary companies that collectively made Fairfax one of Canada's largest financial services organizations.
One notable transaction occurred in 2010, when Fairfax Financial completed the acquisition of [[Zenith National Insurance]], a U.S.-based workers' compensation insurer. The deal, which was valued at a significant premium, faced a legal challenge from Zenith National investors who sought to halt the acquisition. However, the challenge was unsuccessful, and the transaction proceeded.<ref>{{cite news |title=Zenith National Investors Lose Bid to Halt Fairfax Financial Acquisition |url=https://www.bloomberg.com/news/articles/2010-04-22/zenith-national-investors-lose-bid-to-halt-fairfax-financial-acquisition |work=Bloomberg |date=2010-04-22 |access-date=2026-02-24}}</ref>


In 2010, Fairfax Financial completed the acquisition of Zenith National Insurance Group, a transaction that was subject to legal challenge when Zenith National investors sought to halt the deal. The bid to block the acquisition was ultimately unsuccessful.<ref>{{cite news |title=Zenith National Investors Lose Bid to Halt Fairfax Financial Acquisition |url=https://www.bloomberg.com/news/articles/2010-04-22/zenith-national-investors-lose-bid-to-halt-fairfax-financial-acquisition |work=Bloomberg News |date=2010-04-22 |access-date=2026-02-24}}</ref> The Zenith acquisition further consolidated Fairfax's position in the U.S. insurance market and demonstrated Watsa's willingness to pursue transactions that others might avoid.
Watsa's investment philosophy at Fairfax has consistently emphasised contrarian thinking and deep value analysis. He has maintained large cash positions and hedging strategies during periods when he perceived markets to be overvalued, and he has taken concentrated positions in companies he believed to be fundamentally undervalued. This approach has produced both substantial gains and periods of underperformance relative to broader market indices, reflecting the inherent volatility of contrarian value investing.


Throughout this period, Watsa maintained a hands-on approach to investment management, personally overseeing the deployment of Fairfax's investment portfolio. His strategy consistently emphasized deep value investments, often taking large positions in companies experiencing temporary difficulties — a hallmark of the contrarian value investing approach he adopted from the Graham and Dodd tradition.
=== BlackBerry Involvement ===


=== Investment Philosophy and Portfolio Strategy ===
One of Watsa's most prominent and widely reported investment positions was in [[BlackBerry Limited]] (formerly Research In Motion). As BlackBerry's share price declined from its peak during the smartphone transition era, Watsa accumulated a significant stake in the company. In 2013, a consortium led by Fairfax Financial proposed to acquire BlackBerry for approximately $4.7 billion in what would have been a take-private transaction.<ref>{{cite news |title=Indian billionaire Prem Watsa buying BlackBerry for $4.7 billion |url=http://news.biharprabha.com/2013/09/indian-billionaire-prem-watsa-buying-blackberry-for-4-7-billion/ |work=Bihar Prabha |date=2013-09-23 |access-date=2026-02-24}}</ref> The proposed buyout ultimately did not proceed as structured, but Fairfax remained a major shareholder in BlackBerry. Watsa served on BlackBerry's board of directors, and Fairfax continued to hold the position as part of its broader portfolio for years.


Watsa's investment philosophy has been characterized by a concentrated, high-conviction approach to portfolio construction. As of the third quarter of 2025, Fairfax Financial's 13F portfolio stood at approximately $2.06 billion, reflecting the scale of the company's investment operations.<ref>{{cite web |title=Tracking Prem Watsa's Fairfax Financial Holdings Portfolio — Q3 2025 Update |url=https://seekingalpha.com/article/4849585-prem-watsa-fairfax-financial-holdings-portfolio-q3-2025-update |publisher=Seeking Alpha |date=2025-12-02 |access-date=2026-02-24}}</ref> Analysis of the portfolio has shown that Watsa's top five positions have represented as much as 70.19% of the total portfolio, indicating a highly concentrated allocation strategy.<ref>{{cite web |title=Prem Watsa's Top 5 Positions Represent 70.19% Of The Total Portfolio |url=https://acquirersmultiple.com/2025/09/prem-watsas-top-5-positions-represent-70-19-of-the-total-portfolio/ |publisher=The Acquirer's Multiple |date=2025-09-07 |access-date=2026-02-24}}</ref>
In the fourth quarter of 2025, adjustments to the BlackBerry position were noted in Fairfax's 13F filings. An analysis of the filing indicated that BlackBerry saw a -1.32% portfolio impact in Watsa's portfolio adjustments during that period.<ref>{{cite news |title=Prem Watsa's Strategic Moves: BlackBerry Ltd Sees a -1.32% Portfolio Impact |url=https://finance.yahoo.com/news/prem-watsas-strategic-moves-blackberry-120126804.html |work=Yahoo Finance |date=2025-11-14 |access-date=2026-02-24}}</ref>


The portfolio has reflected what analysts have described as a "steady, high-conviction allocation toward real assets, energy, and restructuring platforms," with Watsa positioning the portfolio through what has been characterized as "deep value and optionality."<ref>{{cite web |title=Prem Watsa: Positioning Through Deep Value & Optionality |url=https://acquirersmultiple.com/2026/01/prem-watsa-positioning-through-deep-value-optionality/ |publisher=The Acquirer's Multiple |date=2026-01-01 |access-date=2026-02-24}}</ref> This approach has included significant positions in the natural resources, technology, and real estate sectors.
=== Investment Philosophy and Portfolio Concentration ===


Watsa's investment activity has drawn ongoing scrutiny from financial analysts and media. In late 2025, filings showed that Fairfax had reduced its stake in [[Orla Mining]] by approximately 44%, cutting its position by 25 million shares in the fourth quarter of 2025.<ref>{{cite web |title=Did Prem Watsa's 44% Stake Cut Just Recast Orla Mining's (TSX:OLA) Investment Narrative? |url=https://simplywall.st/stocks/ca/materials/tsx-ola/orla-mining-shares/news/did-prem-watsas-44-stake-cut-just-recast-orla-minings-tsxola |publisher=Simply Wall Street |date=2026-02-18 |access-date=2026-02-24}}</ref> Similarly, filings revealed strategic adjustments to Fairfax's position in [[BlackBerry Limited]], with a reported portfolio impact of -1.32%.<ref>{{cite web |title=Prem Watsa's Strategic Moves: BlackBerry Ltd Sees a -1.32% Portfolio Impact |url=https://finance.yahoo.com/news/prem-watsas-strategic-moves-blackberry-120126804.html |work=Yahoo Finance |date=2025-11-14 |access-date=2026-02-24}}</ref>
Watsa's approach to portfolio construction has been characterised by high concentration. As of September 2025, analysis of Fairfax Financial's 13F filings showed that Watsa's top five positions represented 70.19% of the total portfolio, reflecting a highly concentrated allocation strategy consistent with his long-standing belief in making large bets on his highest-conviction ideas.<ref>{{cite web |title=Prem Watsa's Top 5 Positions Represent 70.19% Of The Total Portfolio |url=https://acquirersmultiple.com/2025/09/prem-watsas-top-5-positions-represent-70-19-of-the-total-portfolio/ |work=The Acquirer's Multiple |date=2025-09-07 |access-date=2026-02-24}}</ref>


=== BlackBerry Investment ===
By the third quarter of 2025, the Fairfax Financial 13F portfolio had risen to approximately $2.06 billion.<ref>{{cite web |title=Tracking Prem Watsa's Fairfax Financial Holdings Portfolio - Q3 2025 Update |url=https://seekingalpha.com/article/4849585-prem-watsa-fairfax-financial-holdings-portfolio-q3-2025-update |work=Seeking Alpha |date=2025-12-02 |access-date=2026-02-24}}</ref> Analysis of the portfolio in early 2026 described a "steady, high-conviction allocation toward real assets, energy, and restructuring platforms," consistent with Watsa's long-standing approach of positioning through deep value and optionality.<ref>{{cite web |title=Prem Watsa: Positioning Through Deep Value & Optionality |url=https://acquirersmultiple.com/2026/01/prem-watsa-positioning-through-deep-value-optionality/ |work=The Acquirer's Multiple |date=2026-01-01 |access-date=2026-02-24}}</ref>


One of Watsa's most prominent and scrutinized investments has been his involvement with [[BlackBerry Limited]] (formerly Research In Motion). In 2013, Watsa led a consortium that proposed to acquire BlackBerry for approximately $4.7 billion, at a time when the once-dominant smartphone maker was experiencing severe competitive pressure from Apple's iPhone and devices running Google's Android operating system.<ref>{{cite news |title=Indian billionaire Prem Watsa buying BlackBerry for $4.7 billion |url=http://news.biharprabha.com/2013/09/indian-billionaire-prem-watsa-buying-blackberry-for-4-7-billion/ |work=Bihar Prabha |date=2013-09 |access-date=2026-02-24}}</ref> The proposed buyout ultimately did not proceed in its original form, but Watsa and Fairfax maintained a significant ownership stake in BlackBerry, and Watsa continued to serve on the company's board of directors. The BlackBerry investment became one of the most closely watched positions in the Fairfax portfolio, with analysts tracking Watsa's adjustments to the position over successive quarters.
In the fourth quarter of 2025, Watsa made notable adjustments to his portfolio, including a 44% reduction in his stake in [[Orla Mining]], cutting his position by 25 million shares.<ref>{{cite web |title=Did Prem Watsa's 44% Stake Cut Just Recast Orla Mining's (TSX:OLA) Investment Narrative? |url=https://simplywall.st/stocks/ca/materials/tsx-ola/orla-mining-shares/news/did-prem-watsas-44-stake-cut-just-recast-orla-minings-tsxola |work=Simply Wall Street |date=2026-02-18 |access-date=2026-02-24}}</ref>


=== Real Estate and Recent Investments ===
=== Real Estate and Kennedy Wilson ===


In February 2026, reports emerged that Watsa was in line to acquire a majority stake in [[Kennedy-Wilson Holdings]], a Beverly Hills-based global real estate investment company. The transaction, if completed, would keep the existing management team including CEO William McMorrow and senior executives in charge, under a plan to take the company private.<ref>{{cite news |title=Toronto billionaire Prem Watsa in line for majority stake in Kennedy Wilson |url=https://therealdeal.com/la/2026/02/17/prem-watsa-in-line-for-majority-stake-in-kennedy-wilson/ |work=The Real Deal |date=2026-02-17 |access-date=2026-02-24}}</ref> The potential Kennedy-Wilson acquisition reflected Watsa's continued interest in real estate as an asset class and his established pattern of taking large, concentrated positions in companies where he sees long-term value.
In February 2026, reports emerged that Watsa was in line to acquire a majority stake in [[Kennedy Wilson]], a Beverly Hills-based real estate investment company. The proposed transaction would keep Kennedy Wilson's existing leadership, including CEO William McMorrow and senior executives, in charge as part of a plan to take the company private.<ref>{{cite news |title=Toronto billionaire Prem Watsa in line for majority stake in Kennedy Wilson |url=https://therealdeal.com/la/2026/02/17/prem-watsa-in-line-for-majority-stake-in-kennedy-wilson/ |work=The Real Deal |date=2026-02-17 |access-date=2026-02-24}}</ref> This move was consistent with Watsa's long-standing strategy of acquiring undervalued or distressed assets and holding them for long-term appreciation.


Watsa has also drawn attention for his views on the Canadian real estate market. He has publicly stated his belief that the Toronto real estate market is in a bubble that will eventually burst, cautioning that "people are going to get hurt."<ref>{{cite news |title=People are going to get hurt: Fairfax's Prem Watsa says Toronto real estate bubble will burst |url=http://business.financialpost.com/personal-finance/mortgages-real-estate/people-are-going-to-get-hurt-fairfaxs-prem-watsa-says-toronto-real-estate-bubble-will-burst |work=Financial Post |access-date=2026-02-24}}</ref>
=== Views on Real Estate Markets ===


=== Criticism and Scrutiny ===
Watsa has periodically made public statements regarding his assessment of real estate markets. In a notable instance, he expressed the view that the Toronto real estate market was experiencing a bubble and predicted that "people are going to get hurt" when prices corrected.<ref>{{cite news |title='People are going to get hurt': Fairfax's Prem Watsa says Toronto real estate bubble will burst |url=http://business.financialpost.com/personal-finance/mortgages-real-estate/people-are-going-to-get-hurt-fairfaxs-prem-watsa-says-toronto-real-estate-bubble-will-burst |work=Financial Post |access-date=2026-02-24}}</ref> Such public commentary reflected his broader willingness to take contrarian positions and express views that diverged from prevailing market sentiment.


While Watsa's long-term track record at Fairfax has drawn favorable comparisons to some of the most successful investors in history, his approach has not been without criticism. A 2025 analysis by Corporate Knights highlighted what it described as "the giant oversight in Prem Watsa's long-term investing strategy," pointing to questions about the sustainability and environmental considerations of the Fairfax portfolio.<ref>{{cite news |title=The giant oversight in Prem Watsa's long-term investing strategy |url=https://corporateknights.com/finance/the-giant-oversight-in-prem-watsas-long-term-investing-strategy/ |work=Corporate Knights |date=2026-02-20 |access-date=2026-02-24}}</ref> The analysis raised questions about whether Watsa's concentration in real assets and energy positions adequately accounts for the risks associated with the transition to a low-carbon economy.
=== Long-Term Investing Strategy and Criticism ===


Watsa's contrarian positions have also periodically drawn skepticism when short-term performance has lagged broader market benchmarks. His large bets on distressed or out-of-favor companies, while sometimes generating substantial returns over the long term, have at times tested the patience of shareholders and analysts who questioned the thesis underlying specific investments.
While Watsa's long-term track record at Fairfax Financial has attracted a following among value investors, his approach has also drawn scrutiny. A 2026 analysis by Corporate Knights examined what it described as "the giant oversight in Prem Watsa's long-term investing strategy," raising questions about aspects of Fairfax Financial's portfolio construction and capital allocation decisions.<ref>{{cite news |title=The giant oversight in Prem Watsa's long-term investing strategy |url=https://corporateknights.com/finance/the-giant-oversight-in-prem-watsas-long-term-investing-strategy/ |work=Corporate Knights |date=2026-02-20 |access-date=2026-02-24}}</ref> Watsa's extended hedging positions against equity markets during the 2010s, in particular, resulted in significant opportunity costs during a sustained bull market, and this period has been a focal point of both criticism and analysis.


== Personal Life ==
== Personal Life ==


Watsa emigrated from India to Canada in the early 1970s and has been based in Toronto for the majority of his professional career. He became a Canadian citizen and has been a prominent figure in the Canadian business community for several decades.<ref name="globe" />
Watsa is a Canadian citizen who has resided in Toronto for the majority of his adult life.<ref>{{cite web |title=Fairfax Financial Holdings - Corporate |url=http://www.fairfax.ca/corporate.htm |publisher=Fairfax Financial Holdings |access-date=2026-02-24}}</ref> He maintains connections to India, where he was born, and has been involved in various philanthropic activities in both Canada and India. His son, Ben Watsa, has also been involved in business.


Watsa has been involved in philanthropic activities, though he has maintained a relatively low public profile compared to some of his peers in the Canadian billionaire class. His contributions to education have been particularly notable, reflected in his appointment as Chancellor of the University of Waterloo and his involvement with educational institutions in both Canada and India.
Watsa's lifestyle has been described by observers and journalists as relatively modest given his wealth, a characteristic frequently noted in profiles that compare his personal habits to those of other notable value investors. He has spoken publicly about the influence of his Indian upbringing and his emigration experience on his business philosophy and personal values.<ref name="globe" />


He has been described in media profiles as reserved and analytical, with a management style that emphasizes long-term thinking and patience. Canadian Business magazine profiled him extensively, characterizing him as "the man with nothing to lose," a reference to his willingness to take large contrarian positions.<ref>{{cite web |title=The Man With Nothing to Lose |url=http://www.canadianbusiness.com/companies-and-industries/the-man-with-nothing-to-lose/ |work=Canadian Business |access-date=2026-02-24}}</ref>
In his public statements and shareholder letters, Watsa has frequently referenced the intellectual influences that have shaped his thinking, including the writings of Benjamin Graham and the investment philosophy of Warren Buffett. He has described his annual shareholder letters for Fairfax Financial as an important channel for communicating with shareholders about the company's investment philosophy and long-term objectives, following a format similar to Buffett's well-known annual letters to Berkshire Hathaway shareholders.


== Recognition ==
== Recognition ==


Watsa has received numerous honors and awards over the course of his career, recognizing his achievements in business, investment, and public service.
Watsa has received recognition from both Canadian and Indian institutions for his contributions to business and finance. In Canada, he was named to the [[Order of Canada]], one of the country's highest civilian honours.<ref>{{cite news |title=Four Nova Scotians among Order of Canada honourees |url=http://thechronicleherald.ca/canada/1296405-four-nova-scotians-among-order-of-canada-honourees |work=The Chronicle Herald |access-date=2026-02-24}}</ref>


=== Order of Canada ===
In 2020, the Government of India conferred upon Watsa the [[Padma Bhushan]], India's third-highest civilian award, in the category of trade and industry. The honour was announced alongside awards to other prominent business figures, including [[Anand Mahindra]] and [[Venu Srinivasan]].<ref>{{cite news |title=Anand Mahindra, Venu Srinivasan to be honoured with Padma Bhushan; Naukri.com founder to get Padma Shri |url=https://economictimes.indiatimes.com/magazines/panache/anand-mahindra-venu-srinivasan-to-be-honoured-with-padma-bhushan-naukri-com-founder-to-get-padma-shri/articleshow/73628195.cms |work=The Economic Times |access-date=2026-02-24}}</ref><ref>{{cite web |title=Padma Awards 2020 Awardees List |url=https://padmaawards.gov.in/PDFS/2020AwardeesList.pdf |publisher=Government of India |access-date=2026-02-24}}</ref> IIT Madras also congratulated Watsa upon the announcement of the Padma Bhushan.<ref>{{cite news |title=IIT Madras congratulates its professors, alumnus on being conferred with Padma Awards |url=https://www.hindustantimes.com/education/iit-madras-congratulates-its-professors-alumnus-on-being-conferred-with-padma-awards/story-lZHypBXbqONVYnAMxCEWgK.html |work=Hindustan Times |access-date=2026-02-24}}</ref>


Watsa was appointed to the [[Order of Canada]], one of Canada's highest civilian honors, in recognition of his contributions to business and philanthropy.<ref>{{cite news |title=Four Nova Scotians among Order of Canada honourees |url=http://thechronicleherald.ca/canada/1296405-four-nova-scotians-among-order-of-canada-honourees |work=The Chronicle Herald |access-date=2026-02-24}}</ref>
Watsa served as the 9th Chancellor of the [[University of Waterloo]] from 2009 to 2014, succeeding [[Mike Lazaridis]], the co-founder of [[BlackBerry Limited]]. In this role, he presided over convocation ceremonies and served as the titular head of the university. He was succeeded by [[Tom Jenkins]].<ref>{{cite web |title=Prem Watsa installed as chancellor |url=http://newsrelease.uwaterloo.ca/news.php?id=5081 |publisher=University of Waterloo |access-date=2026-02-24}}</ref>


=== Padma Bhushan ===
IIT Madras recognized Watsa with its Distinguished Alumnus Award in 1999, honouring his achievements in the field of finance and business.<ref name="iitm" />


In January 2020, the Government of India announced that Watsa would be awarded the [[Padma Bhushan]], one of India's highest civilian awards, in the category of Trade and Industry.<ref>{{cite web |title=Padma Awards 2020 — Awardees List |url=https://padmaawards.gov.in/PDFS/2020AwardeesList.pdf |publisher=Government of India |access-date=2026-02-24}}</ref><ref>{{cite news |title=Anand Mahindra, Venu Srinivasan to be honoured with Padma Bhushan; Naukri.com founder to get Padma Shri |url=https://economictimes.indiatimes.com/magazines/panache/anand-mahindra-venu-srinivasan-to-be-honoured-with-padma-bhushan-naukri-com-founder-to-get-padma-shri/articleshow/73628195.cms |work=The Economic Times |access-date=2026-02-24}}</ref> IIT Madras congratulated Watsa on the honor, noting his distinguished career as an alumnus of the institution.<ref>{{cite news |title=IIT Madras congratulates its professors, alumnus on being conferred with Padma Awards |url=https://www.hindustantimes.com/education/iit-madras-congratulates-its-professors-alumnus-on-being-conferred-with-padma-awards/story-lZHypBXbqONVYnAMxCEWgK.html |work=Hindustan Times |access-date=2026-02-24}}</ref>
Watsa has also been recognized by [[Huron University College]], which noted his contributions to Canadian business and education.<ref>{{cite web |title=Prem Watsa recognition |url=http://huronuc.ca/AboutHuron/News/NewsDetail?q=f54ce115-dd8d-4cba-b102-cf8399c09475 |publisher=Huron University College |access-date=2026-02-24}}</ref>
 
=== Chancellor of the University of Waterloo ===
 
Watsa served as the ninth Chancellor of the [[University of Waterloo]] from 2009 to 2014, succeeding [[Mike Lazaridis]], the co-founder of BlackBerry.<ref>{{cite web |title=Prem Watsa named Chancellor of the University of Waterloo |url=http://newsrelease.uwaterloo.ca/news.php?id=5081 |publisher=University of Waterloo |access-date=2026-02-24}}</ref> He was succeeded in the role by Tom Jenkins. The chancellorship reflected Watsa's commitment to higher education in Canada and his stature within the Canadian business establishment.
 
=== IIT Madras Distinguished Alumnus Award ===
 
In 1999, Watsa received the Distinguished Alumnus Award from the Indian Institute of Technology Madras, recognizing his career achievements and contributions to the field of finance and investment.<ref>{{cite web |title=Citations — 1999 Distinguished Alumnus Awards Recipients |url=http://alumni.iitm.ac.in/citations-1999-distinguished-alumnus-awards-recipients/ |publisher=IIT Madras Alumni Association |access-date=2026-02-24}}</ref>
 
Watsa has also been recognized by Huron University College at Western University for his contributions to education and business.<ref>{{cite web |title=Prem Watsa — Huron University College |url=http://huronuc.ca/AboutHuron/News/NewsDetail?q=f54ce115-dd8d-4cba-b102-cf8399c09475 |publisher=Huron University College |access-date=2026-02-24}}</ref>


== Legacy ==
== Legacy ==


Prem Watsa's career represents one of the most significant examples of the application of value investing principles in the Canadian financial industry. Over nearly four decades at the helm of Fairfax Financial Holdings, he built a small provincial trucking insurer into a multinational financial holding company with billions of dollars in assets and operations spanning multiple continents. His concentrated, contrarian approach to investment management, while periodically generating controversy, has produced a long-term track record that has attracted comparisons to some of the most successful investors of the modern era.
Prem Watsa's career represents one of the most notable examples of an immigrant entrepreneur building a major financial institution in Canada. Starting from modest beginnings upon his arrival from India, Watsa constructed Fairfax Financial Holdings into a global insurance and investment holding company, a trajectory that has been cited as an illustration of the opportunities available in Canada's financial services industry.


Watsa's story as an immigrant who arrived in Canada with limited resources and went on to build one of the country's largest financial companies has made him a notable figure in the narrative of Canadian business history. His appointment to the Order of Canada and receipt of India's Padma Bhushan reflect the recognition he has received in both his adopted and native countries.
His investment philosophy, grounded in the Benjamin Graham tradition of value investing, has influenced a generation of Canadian investors and fund managers. The annual Fairfax Financial shareholder meetings and Watsa's shareholder letters have become significant events in the Canadian investment community, drawing comparisons to the Berkshire Hathaway annual meetings in Omaha, Nebraska.<ref>{{cite web |title=The man with nothing to lose |url=http://www.canadianbusiness.com/companies-and-industries/the-man-with-nothing-to-lose/ |work=Canadian Business |access-date=2026-02-24}}</ref>


His involvement with the Ben Graham Centre for Value Investing, his service as Chancellor of the University of Waterloo, and his support for educational institutions underscore a commitment to the intellectual traditions that have shaped his career. As Fairfax Financial continues to operate under his leadership, with ongoing investments in real estate, natural resources, technology, and insurance, Watsa remains one of the most closely watched figures in global value investing.
Watsa's willingness to take large, contrarian positions — including his extended bearish hedges on equity markets and his significant investment in BlackBerry during a period of sharp decline — has made him a subject of both admiration and debate in financial circles. His career illustrates both the potential rewards and the risks inherent in concentrated, conviction-driven value investing. The comparison to Warren Buffett, while flattering, has also invited scrutiny of the periods where Fairfax's returns have diverged from those of Berkshire Hathaway.


The ongoing scrutiny of his portfolio decisions — from the concentration of his top holdings to his positions in companies like BlackBerry, Orla Mining, and Kennedy-Wilson — reflects the degree to which Watsa's investment moves are treated as significant market signals by analysts and investors.<ref>{{cite web |title=Fairfax Financial Holdings Portfolio, Holdings, 13F |url=https://www.gurufocus.com/guru/prem%2Bwatsa/stock-picks?view=table |publisher=GuruFocus |date=2026-02-17 |access-date=2026-02-24}}</ref> Whether his long-term approach will continue to generate returns that justify his concentrated, contrarian strategy remains a subject of active debate among financial commentators.
His dual recognition by both the Canadian and Indian governments — through the Order of Canada and the Padma Bhushan — reflects the transnational nature of his influence and his standing in both countries. As of 2026, Watsa continues to serve as Chairman and CEO of Fairfax Financial Holdings, actively managing the company's investment portfolio and pursuing new acquisition opportunities, including the reported pursuit of a majority stake in Kennedy Wilson.<ref>{{cite news |title=Toronto billionaire Prem Watsa in line for majority stake in Kennedy Wilson |url=https://therealdeal.com/la/2026/02/17/prem-watsa-in-line-for-majority-stake-in-kennedy-wilson/ |work=The Real Deal |date=2026-02-17 |access-date=2026-02-24}}</ref>


== References ==
== References ==
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Latest revision as of 07:15, 24 February 2026


Prem Watsa
Prem Watsa
BornV. Prem Watsa
5 8, 1950
BirthplaceHyderabad, Hyderabad State (present-day Telangana), India
NationalityCanadian
OccupationBusinessman, investor
TitleChairman and CEO, Fairfax Financial Holdings
Known forFounder, Chairman, and CEO of Fairfax Financial Holdings
EducationIndian Institute of Technology Madras (B.Tech); University of Western Ontario (MBA)
AwardsOrder of Canada; Padma Bhushan (2020); Chancellor, University of Waterloo (2009–2014)
Website[[www.fairfax.ca www.fairfax.ca] Official site]

V. Prem Watsa (born 5 August 1950) is an Indian-Canadian billionaire businessman and investor who is the founder, chairman, and chief executive officer of Fairfax Financial Holdings, a Toronto-based financial holding company engaged in property and casualty insurance and reinsurance, and investment management. Born in Hyderabad, India, Watsa emigrated to Canada in the 1970s and built Fairfax Financial from a small Canadian trucking insurance company into a global enterprise with operations spanning multiple continents. His investment philosophy, rooted in the principles of Benjamin Graham and value investing, along with his record of contrarian bets and long-term capital allocation, has led the financial press to refer to him as the "Canadian Warren Buffett."[1] Watsa served as the 9th Chancellor of the University of Waterloo from 2009 to 2014, succeeding Mike Lazaridis.[2] In 2020, the Government of India awarded him the Padma Bhushan, one of the country's highest civilian honours, in recognition of his contributions to trade and industry.[3] As of 2025, Fairfax Financial's 13F portfolio was valued at approximately $2.06 billion, reflecting a concentrated, high-conviction investment approach.[4]

Early Life

Vivian Prem Watsa was born on 5 August 1950 in Hyderabad, in the former Hyderabad State of India (present-day Telangana).[5] He grew up in a middle-class family in Hyderabad and received his early education in India. Details regarding his parents and family background during his formative years remain limited in public sources, though accounts describe a childhood shaped by the values of discipline, education, and self-reliance that were common in professional Indian families of that era.

Watsa's early intellectual development was marked by a strong aptitude for mathematics and engineering, which led him to pursue higher education at one of India's most competitive institutions. His decision to attend the Indian Institute of Technology Madras (IIT Madras) placed him among a highly selective cohort of students in the country. IIT Madras later recognized his achievements by naming him a Distinguished Alumnus, an honour bestowed upon graduates who have made exceptional contributions in their respective fields.[6]

After completing his undergraduate education in India, Watsa emigrated to Canada in the 1970s. The move represented a significant transition — from the academic environment of one of India's premier engineering institutions to a new country where he would have to establish himself from the ground up. It was in Canada that Watsa's interests shifted from engineering toward finance and business, a pivot that would define the rest of his career. His arrival in Canada coincided with a period of significant immigration from South Asia, and Watsa would go on to become one of the most prominent Indian-Canadian business figures in the country's history.[7]

Education

Watsa earned his Bachelor of Technology (B.Tech) in chemical engineering from the Indian Institute of Technology Madras, one of the Indian Institutes of Technology established by the Government of India as centres of excellence in engineering and technology education.[8] His time at IIT Madras provided him with a rigorous analytical foundation that he would later apply to financial analysis and investment decision-making.

After emigrating to Canada, Watsa pursued graduate studies at the Richard Ivey School of Business at the University of Western Ontario (now Western University), where he earned his Master of Business Administration (MBA).[5] It was during his MBA programme that Watsa was first introduced to the value investing philosophy of Benjamin Graham, the economist and investor whose seminal works Security Analysis and The Intelligent Investor would profoundly influence Watsa's approach to investment and capital allocation. Watsa has cited his exposure to Graham's principles at Ivey as a transformative experience that shaped his entire professional career. He later served on the advisory board of the Ben Graham Centre for Value Investing, an institution connected to the Ivey Business School.[9]

Career

Early Career and Founding of Fairfax Financial

After completing his MBA, Watsa entered the Canadian financial services industry. In the mid-1980s, he acquired control of a small Canadian trucking insurance company, which would become the foundation for Fairfax Financial Holdings. The name "Fairfax" is an abbreviation of "fair, friendly acquisitions," reflecting Watsa's stated philosophy regarding corporate transactions and his approach to building the company through acquisitions rather than hostile takeovers.[10]

Under Watsa's leadership, the small insurance company was systematically transformed into a diversified financial holding company. The growth strategy centred on acquiring undervalued insurance and reinsurance companies, improving their operations, and deploying their investment float — the pool of premiums held before claims are paid — into long-term value investments. This model bore a structural resemblance to the approach employed by Berkshire Hathaway under Warren Buffett, a comparison that financial journalists and analysts have frequently drawn.[11]

Growth of Fairfax Financial

Through the 1990s and 2000s, Fairfax Financial expanded significantly through a series of acquisitions in the insurance and reinsurance sectors. The company acquired operations in the United States, Europe, and Asia, building a global footprint that extended well beyond its Canadian base. Key acquisitions over the years included insurance underwriting businesses and reinsurance operations that provided Fairfax with a diversified premium base and significant investment capital.

One notable transaction occurred in 2010, when Fairfax Financial completed the acquisition of Zenith National Insurance, a U.S.-based workers' compensation insurer. The deal, which was valued at a significant premium, faced a legal challenge from Zenith National investors who sought to halt the acquisition. However, the challenge was unsuccessful, and the transaction proceeded.[12]

Watsa's investment philosophy at Fairfax has consistently emphasised contrarian thinking and deep value analysis. He has maintained large cash positions and hedging strategies during periods when he perceived markets to be overvalued, and he has taken concentrated positions in companies he believed to be fundamentally undervalued. This approach has produced both substantial gains and periods of underperformance relative to broader market indices, reflecting the inherent volatility of contrarian value investing.

BlackBerry Involvement

One of Watsa's most prominent and widely reported investment positions was in BlackBerry Limited (formerly Research In Motion). As BlackBerry's share price declined from its peak during the smartphone transition era, Watsa accumulated a significant stake in the company. In 2013, a consortium led by Fairfax Financial proposed to acquire BlackBerry for approximately $4.7 billion in what would have been a take-private transaction.[13] The proposed buyout ultimately did not proceed as structured, but Fairfax remained a major shareholder in BlackBerry. Watsa served on BlackBerry's board of directors, and Fairfax continued to hold the position as part of its broader portfolio for years.

In the fourth quarter of 2025, adjustments to the BlackBerry position were noted in Fairfax's 13F filings. An analysis of the filing indicated that BlackBerry saw a -1.32% portfolio impact in Watsa's portfolio adjustments during that period.[14]

Investment Philosophy and Portfolio Concentration

Watsa's approach to portfolio construction has been characterised by high concentration. As of September 2025, analysis of Fairfax Financial's 13F filings showed that Watsa's top five positions represented 70.19% of the total portfolio, reflecting a highly concentrated allocation strategy consistent with his long-standing belief in making large bets on his highest-conviction ideas.[15]

By the third quarter of 2025, the Fairfax Financial 13F portfolio had risen to approximately $2.06 billion.[16] Analysis of the portfolio in early 2026 described a "steady, high-conviction allocation toward real assets, energy, and restructuring platforms," consistent with Watsa's long-standing approach of positioning through deep value and optionality.[17]

In the fourth quarter of 2025, Watsa made notable adjustments to his portfolio, including a 44% reduction in his stake in Orla Mining, cutting his position by 25 million shares.[18]

Real Estate and Kennedy Wilson

In February 2026, reports emerged that Watsa was in line to acquire a majority stake in Kennedy Wilson, a Beverly Hills-based real estate investment company. The proposed transaction would keep Kennedy Wilson's existing leadership, including CEO William McMorrow and senior executives, in charge as part of a plan to take the company private.[19] This move was consistent with Watsa's long-standing strategy of acquiring undervalued or distressed assets and holding them for long-term appreciation.

Views on Real Estate Markets

Watsa has periodically made public statements regarding his assessment of real estate markets. In a notable instance, he expressed the view that the Toronto real estate market was experiencing a bubble and predicted that "people are going to get hurt" when prices corrected.[20] Such public commentary reflected his broader willingness to take contrarian positions and express views that diverged from prevailing market sentiment.

Long-Term Investing Strategy and Criticism

While Watsa's long-term track record at Fairfax Financial has attracted a following among value investors, his approach has also drawn scrutiny. A 2026 analysis by Corporate Knights examined what it described as "the giant oversight in Prem Watsa's long-term investing strategy," raising questions about aspects of Fairfax Financial's portfolio construction and capital allocation decisions.[21] Watsa's extended hedging positions against equity markets during the 2010s, in particular, resulted in significant opportunity costs during a sustained bull market, and this period has been a focal point of both criticism and analysis.

Personal Life

Watsa is a Canadian citizen who has resided in Toronto for the majority of his adult life.[22] He maintains connections to India, where he was born, and has been involved in various philanthropic activities in both Canada and India. His son, Ben Watsa, has also been involved in business.

Watsa's lifestyle has been described by observers and journalists as relatively modest given his wealth, a characteristic frequently noted in profiles that compare his personal habits to those of other notable value investors. He has spoken publicly about the influence of his Indian upbringing and his emigration experience on his business philosophy and personal values.[5]

In his public statements and shareholder letters, Watsa has frequently referenced the intellectual influences that have shaped his thinking, including the writings of Benjamin Graham and the investment philosophy of Warren Buffett. He has described his annual shareholder letters for Fairfax Financial as an important channel for communicating with shareholders about the company's investment philosophy and long-term objectives, following a format similar to Buffett's well-known annual letters to Berkshire Hathaway shareholders.

Recognition

Watsa has received recognition from both Canadian and Indian institutions for his contributions to business and finance. In Canada, he was named to the Order of Canada, one of the country's highest civilian honours.[23]

In 2020, the Government of India conferred upon Watsa the Padma Bhushan, India's third-highest civilian award, in the category of trade and industry. The honour was announced alongside awards to other prominent business figures, including Anand Mahindra and Venu Srinivasan.[24][25] IIT Madras also congratulated Watsa upon the announcement of the Padma Bhushan.[26]

Watsa served as the 9th Chancellor of the University of Waterloo from 2009 to 2014, succeeding Mike Lazaridis, the co-founder of BlackBerry Limited. In this role, he presided over convocation ceremonies and served as the titular head of the university. He was succeeded by Tom Jenkins.[27]

IIT Madras recognized Watsa with its Distinguished Alumnus Award in 1999, honouring his achievements in the field of finance and business.[8]

Watsa has also been recognized by Huron University College, which noted his contributions to Canadian business and education.[28]

Legacy

Prem Watsa's career represents one of the most notable examples of an immigrant entrepreneur building a major financial institution in Canada. Starting from modest beginnings upon his arrival from India, Watsa constructed Fairfax Financial Holdings into a global insurance and investment holding company, a trajectory that has been cited as an illustration of the opportunities available in Canada's financial services industry.

His investment philosophy, grounded in the Benjamin Graham tradition of value investing, has influenced a generation of Canadian investors and fund managers. The annual Fairfax Financial shareholder meetings and Watsa's shareholder letters have become significant events in the Canadian investment community, drawing comparisons to the Berkshire Hathaway annual meetings in Omaha, Nebraska.[29]

Watsa's willingness to take large, contrarian positions — including his extended bearish hedges on equity markets and his significant investment in BlackBerry during a period of sharp decline — has made him a subject of both admiration and debate in financial circles. His career illustrates both the potential rewards and the risks inherent in concentrated, conviction-driven value investing. The comparison to Warren Buffett, while flattering, has also invited scrutiny of the periods where Fairfax's returns have diverged from those of Berkshire Hathaway.

His dual recognition by both the Canadian and Indian governments — through the Order of Canada and the Padma Bhushan — reflects the transnational nature of his influence and his standing in both countries. As of 2026, Watsa continues to serve as Chairman and CEO of Fairfax Financial Holdings, actively managing the company's investment portfolio and pursuing new acquisition opportunities, including the reported pursuit of a majority stake in Kennedy Wilson.[30]

References

  1. ↑ "Prem Watsa: the richest, savviest guy you've never heard of".Gadgets Now.http://www.gadgetsnow.com/tech-news/Prem-Watsa-the-richest-savviest-guy-youve-never-heard-of/articleshow/23016589.cms.Retrieved 2026-02-24.
  2. ↑ "Prem Watsa installed as chancellor".University of Waterloo.http://newsrelease.uwaterloo.ca/news.php?id=5081.Retrieved 2026-02-24.
  3. ↑ "Padma Awards 2020 Awardees List".Government of India.https://padmaawards.gov.in/PDFS/2020AwardeesList.pdf.Retrieved 2026-02-24.
  4. ↑ "Tracking Prem Watsa's Fairfax Financial Holdings Portfolio - Q3 2025 Update".Seeking Alpha.2025-12-02.https://seekingalpha.com/article/4849585-prem-watsa-fairfax-financial-holdings-portfolio-q3-2025-update.Retrieved 2026-02-24.
  5. ↑ 5.0 5.1 5.2 "Prem Watsa profile".The Globe and Mail.2006-01-27.https://www.theglobeandmail.com/servlet/story/RTGAM.20060126.rmprem0127/BNStory/specialROBmagazine/?pageRequested=all.Retrieved 2026-02-24.
  6. ↑ "Citations - 1999 Distinguished Alumnus Awards Recipients".IIT Madras Alumni Association.http://alumni.iitm.ac.in/citations-1999-distinguished-alumnus-awards-recipients/.Retrieved 2026-02-24.
  7. ↑ "The man with nothing to lose".Canadian Business.http://www.canadianbusiness.com/companies-and-industries/the-man-with-nothing-to-lose/.Retrieved 2026-02-24.
  8. ↑ 8.0 8.1 "Citations - 1999 Distinguished Alumnus Awards Recipients".IIT Madras Alumni Association.http://alumni.iitm.ac.in/citations-1999-distinguished-alumnus-awards-recipients/.Retrieved 2026-02-24.
  9. ↑ "Advisory Board - Ben Graham Centre for Value Investing".Ben Graham Centre for Value Investing.http://www.bengrahaminvesting.ca/About_Us/advisory_board.htm.Retrieved 2026-02-24.
  10. ↑ "Fairfax Financial Holdings - Corporate".Fairfax Financial Holdings.http://www.fairfax.ca/corporate.htm.Retrieved 2026-02-24.
  11. ↑ "Prem Watsa: the richest, savviest guy you've never heard of".Gadgets Now.http://www.gadgetsnow.com/tech-news/Prem-Watsa-the-richest-savviest-guy-youve-never-heard-of/articleshow/23016589.cms.Retrieved 2026-02-24.
  12. ↑ "Zenith National Investors Lose Bid to Halt Fairfax Financial Acquisition".Bloomberg.2010-04-22.https://www.bloomberg.com/news/articles/2010-04-22/zenith-national-investors-lose-bid-to-halt-fairfax-financial-acquisition.Retrieved 2026-02-24.
  13. ↑ "Indian billionaire Prem Watsa buying BlackBerry for $4.7 billion".Bihar Prabha.2013-09-23.http://news.biharprabha.com/2013/09/indian-billionaire-prem-watsa-buying-blackberry-for-4-7-billion/.Retrieved 2026-02-24.
  14. ↑ "Prem Watsa's Strategic Moves: BlackBerry Ltd Sees a -1.32% Portfolio Impact".Yahoo Finance.2025-11-14.https://finance.yahoo.com/news/prem-watsas-strategic-moves-blackberry-120126804.html.Retrieved 2026-02-24.
  15. ↑ "Prem Watsa's Top 5 Positions Represent 70.19% Of The Total Portfolio".The Acquirer's Multiple.2025-09-07.https://acquirersmultiple.com/2025/09/prem-watsas-top-5-positions-represent-70-19-of-the-total-portfolio/.Retrieved 2026-02-24.
  16. ↑ "Tracking Prem Watsa's Fairfax Financial Holdings Portfolio - Q3 2025 Update".Seeking Alpha.2025-12-02.https://seekingalpha.com/article/4849585-prem-watsa-fairfax-financial-holdings-portfolio-q3-2025-update.Retrieved 2026-02-24.
  17. ↑ "Prem Watsa: Positioning Through Deep Value & Optionality".The Acquirer's Multiple.2026-01-01.https://acquirersmultiple.com/2026/01/prem-watsa-positioning-through-deep-value-optionality/.Retrieved 2026-02-24.
  18. ↑ "Did Prem Watsa's 44% Stake Cut Just Recast Orla Mining's (TSX:OLA) Investment Narrative?".Simply Wall Street.2026-02-18.https://simplywall.st/stocks/ca/materials/tsx-ola/orla-mining-shares/news/did-prem-watsas-44-stake-cut-just-recast-orla-minings-tsxola.Retrieved 2026-02-24.
  19. ↑ "Toronto billionaire Prem Watsa in line for majority stake in Kennedy Wilson".The Real Deal.2026-02-17.https://therealdeal.com/la/2026/02/17/prem-watsa-in-line-for-majority-stake-in-kennedy-wilson/.Retrieved 2026-02-24.
  20. ↑ "'People are going to get hurt': Fairfax's Prem Watsa says Toronto real estate bubble will burst".Financial Post.http://business.financialpost.com/personal-finance/mortgages-real-estate/people-are-going-to-get-hurt-fairfaxs-prem-watsa-says-toronto-real-estate-bubble-will-burst.Retrieved 2026-02-24.
  21. ↑ "The giant oversight in Prem Watsa's long-term investing strategy".Corporate Knights.2026-02-20.https://corporateknights.com/finance/the-giant-oversight-in-prem-watsas-long-term-investing-strategy/.Retrieved 2026-02-24.
  22. ↑ "Fairfax Financial Holdings - Corporate".Fairfax Financial Holdings.http://www.fairfax.ca/corporate.htm.Retrieved 2026-02-24.
  23. ↑ "Four Nova Scotians among Order of Canada honourees".The Chronicle Herald.http://thechronicleherald.ca/canada/1296405-four-nova-scotians-among-order-of-canada-honourees.Retrieved 2026-02-24.
  24. ↑ "Anand Mahindra, Venu Srinivasan to be honoured with Padma Bhushan; Naukri.com founder to get Padma Shri".The Economic Times.https://economictimes.indiatimes.com/magazines/panache/anand-mahindra-venu-srinivasan-to-be-honoured-with-padma-bhushan-naukri-com-founder-to-get-padma-shri/articleshow/73628195.cms.Retrieved 2026-02-24.
  25. ↑ "Padma Awards 2020 Awardees List".Government of India.https://padmaawards.gov.in/PDFS/2020AwardeesList.pdf.Retrieved 2026-02-24.
  26. ↑ "IIT Madras congratulates its professors, alumnus on being conferred with Padma Awards".Hindustan Times.https://www.hindustantimes.com/education/iit-madras-congratulates-its-professors-alumnus-on-being-conferred-with-padma-awards/story-lZHypBXbqONVYnAMxCEWgK.html.Retrieved 2026-02-24.
  27. ↑ "Prem Watsa installed as chancellor".University of Waterloo.http://newsrelease.uwaterloo.ca/news.php?id=5081.Retrieved 2026-02-24.
  28. ↑ "Prem Watsa recognition".Huron University College.http://huronuc.ca/AboutHuron/News/NewsDetail?q=f54ce115-dd8d-4cba-b102-cf8399c09475.Retrieved 2026-02-24.
  29. ↑ "The man with nothing to lose".Canadian Business.http://www.canadianbusiness.com/companies-and-industries/the-man-with-nothing-to-lose/.Retrieved 2026-02-24.
  30. ↑ "Toronto billionaire Prem Watsa in line for majority stake in Kennedy Wilson".The Real Deal.2026-02-17.https://therealdeal.com/la/2026/02/17/prem-watsa-in-line-for-majority-stake-in-kennedy-wilson/.Retrieved 2026-02-24.

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