We Study Billionaires - The Investor’s Podcast Network TIP783: What the Market Missed: Prem Watsa and One of the Greatest Records in Business w/ Kyle Grieve
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Jan 11, 2026 Kyle Grieve dives into Prem Watsa's unique journey into investing, driven by academic influences and serendipity. Discover how Fairfax Financial leveraged insurance float as a compounding powerhouse, setting ambitious targets while fostering a culture of accountability. Grieve highlights pivotal moments, including the lessons learned from downturns and the infamous short seller siege. The discussion also covers strategic acquisitions and the shift toward a diversified portfolio, showcasing how organizational culture acts as a sustainable competitive advantage.
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From Engineer To Value Investor
- Prem Watsa moved from India to Canada, studied at IIM and then Ivy, and initially knew nothing about investing.
- A professor's assignment on Alcan Aluminum and reading Security Analysis ignited his shift into value investing.
Float As Investment Jet Fuel
- Fairfax used insurance float as investment fuel, pairing underwriting with long-term investing discipline.
- Watsa set a public ROE target to force accountability and align decisions with long-term compounding.
The Short-Seller Siege
- Short sellers mounted a multi-year harassment campaign against Fairfax led by John Gwynn and hedge funds.
- Fairfax fought back with litigation, disclosures, and ultimately regained investor confidence.
