Fairfax Financial Holdings Ltd (FFH) “Warren Buffet of Canada” to invest $1B in India


Prem Wasta

Of Indian origin, Prem Watsa,  is referred to as ‘Warren Buffet of Canada’. He is known for his ability to identify an undervalued asset and reap returns from it over a long time. It appears that Watsa foresee such investment opportunity in India, where he plans to invest $1 billion through a consortium. It is the first time, when Watsa is setting up a separate company for an individual country in order to raise funds and make the investments.

Long-Term Investment In India

Watsa is very bullish on the Indian economy, and Fairfax Financial Holdings Ltd (TSE:FFH) (OTCMKTS:FRFHF) will target at least $1 billion initially. The nature of the investment will be long-term. Currently, Watsa led Fairfax Financial Holdings Ltd. has invested close to $27 billion across the world, which includes investment in some of the Indian companies like Thomas Cook (India), ICICI Lombard, and Sterling Resorts. However, the new proposed company to lead India’s investments will function independently.

The particulars about the investments will be known in a week’s time, however, Watsa has ruled out the possibility of investing into e-commerce segment. He explained that he has little understanding of the business while he considers the valuation of the sector as overstretched. It is to be noted that e-commerce has attracted most of the investments this year. Watsa hinted that they intend to invest in sectors that are essential to the people, which could be infrastructure.

Inspirational Meeting With Modi

Watsa’s interest in India grew tremendously after the elections. On Friday, Watsa met Prime Minister, Narendra Modi, and he described the 30 minutes of his meeting as “inspirational.” He is not the only one to meet Modi as several other prominent business personnel have discussed business with Modi over the last few months. Some of these include Facebook Inc (NASDAQ:FB)’s Mark Zuckerberg and Microsoft Corporation (NASDAQ:MSFT)’s Satya Nadella.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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