Prem Watsa Portfolio Analysis (December 31, 2021)

Famous superinvestor, Prem Watsa, revealed in a recent regulatory filing his newest positions.  In Prem Watsa portfolio 2021 analysis, we will go into more detail about top 5 stocks this superinvestor had as of December 31, 2021.

Watsa manages his investments via his fund, Fairfax Financial Holdings, which holds about $3.1 billion according to the latest available 13F filling. Click here for the latest available 13F filling.

The most notable stocks in Prem Watsa’s Q4 portfolio include Atlas Corp, Resolute Fst Prods Inc, Blackberry Ltd, Kennedy-Wilson Holdings Inc and Micron Technology Inc. In addition to others mentioned in detail below.

We used the Q4 portfolio of Prem Watsa’s Fairfax Financial Holdings to select his top 5 value stocks. We ranked the securities according to Watsa’s stake value in each holding.

Summary

• Prem Watsa’s top 5 securities make up 86.6% of the entire portfolio.
• Fairfax Financial Holdings owns position in 63 holdings, managing approximately $3.1 billion.
• Atlas Corp, Watsa’s largest holding, makes up 45.4% of the total portfolio.

Atlas Corp (ATCO)

Fairfax Financial Holdings’s stake value: $1.4 Billion

Percentage of Fairfax Financial Holdings’s 13F Portfolio: 45.4%

Atlas Corp. has 5300 employees.

As of February 14, 2022 Atlas Corp had a market cap of $3.81 Million. Analysts predicted 1 year target price of $18.06 that exceeds the current price of $15.8 for 14.3%. Trailing twelve months P/E ratio is currently 24.8 making it a slightly cheaper stock than the rest of the S&P500 index. Looking at revenue, Atlas Corp generated significant amount of revenue, $1421 million in 2020, surging by 25.6% in comparison to 2019 when it was $1131 million. Net income dropped according to the latest fillings, sinking in 2020 by around -56.1% totalling $192.6 million. Lastly, the profit margin, according to the last 10-F stands at 13.6%, has significantly deteriorated in comparison to the company’s previous years of operation.

Atlas Corp. is a leading global asset management company, differentiated by its position as a best-in-class owner and operator with a focus on deploying capital to create sustainable shareholder value. Atlas brings together an experienced asset management team with deep operational and capital allocation experience.

Resolute Fst Prods Inc (RFP)

Fairfax Financial Holdings’s stake value: $465.2 Million

Percentage of Fairfax Financial Holdings’s 13F Portfolio: 14.9%

Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products and papers, which are marketed in over 60 countries.

The company owns or operates some 40 facilities, as well as power generation assets, in the United States and Canada.

Resolute has third-party certified 100% of its managed woodlands to internationally recognized sustainable forest management standards.

The shares of Resolute Forest Products trade under the stock symbol RFP on both the New York Stock Exchange and the Toronto Stock Exchan

Blackberry Ltd (BB)

Fairfax Financial Holdings’s stake value: $436.9 Million

Percentage of Fairfax Financial Holdings’s 13F Portfolio: 14.0%

BlackBerry Ltd does business in Manufacturing sector and has 3497 employees. Current CEO is John Chen.

As of February 14, 2022 Blackberry Ltd had a market cap of $4.016 Million. Analysts predicted 1 year target price of $8.29 that exceeds the current price of $7.22 for 14.8%. If we look at revenue, Blackberry Ltd generated low $893 million revenue in 2021, falling by -14.1% in comparison to 2020 when it was $1040 million. Net income surged according to the latest fillings, jumping in 2021 by around 626.3% adding up to total of $-1104.0 million.

BlackBerry provides intelligent security software and services to enterprises and governments around the world.

Kennedy-Wilson Holdings Inc (KW)

Fairfax Financial Holdings’s stake value: $318.1 Million

Percentage of Fairfax Financial Holdings’s 13F Portfolio: 10.2%

Kennedy-Wilson Holdings Inc does business in Real Estate and Rental and Leasing sector. Current CEO is William McMorrow.

As of February 14, 2022 Kennedy-Wilson Holdings Inc had a market cap of $3.095 Million. Analysts predicted 1 year target price of $26.5 that exceeds the current price of $22.6 for 17.3%. Trailing twelve months P/E ratio is currently 7.02 making it much cheaper stock than the rest of the S&P500 index. If we look at revenue, Kennedy-Wilson Holdings Inc generated low $497 million revenue in 2020, falling by -22.5% in comparison to 2019 when it was $641 million. Net income dropped according to the latest fillings, sinking in 2020 by around -51.4% totalling $110.1 million. Besides, profit margin, which levels at 22.2%, shows an improvement, comparing to the previous years.

Kennedy Wilson (NYSE:KW) is a leading global real estate investment company. They own, operate, and invest in real estate through our balance sheet and through our investment management platform. We focus on multifamily and office properties located in the Western U.S., U.K., and Ireland.

Micron Technology Inc (MU)

Fairfax Financial Holdings’s stake value: $64.3 Million

Percentage of Fairfax Financial Holdings’s 13F Portfolio: 2.1%

Micron Technology Inc. does business in Manufacturing sector. Current CEO is Sanjay Mehrotra.

As of February 14, 2022 Micron Technology Inc had a market cap of $101.312 Million. Analysts predicted 1 year target price of $109.46 that exceeds the current price of $91.28 for 19.9%. Trailing twelve months P/E ratio is currently 14.0 making it a slightly cheaper stock than the rest of the S&P500 index. Looking at revenue, Micron Technology Inc generated significant amount of revenue, $27705 million in 2021, surging by 29.3% in comparison to 2020 when it was $21435 million. Net income surged according to the latest fillings, jumping in 2021 by around 118.1% adding up to total of $5861.0 million. On top of that, the net profit margin, which was at 21.2%, has dropped compared to previous operations.

Micron Technology is an industry leader in innovative memory and storage solutions. It has various global brands that are transforming how the world uses information to enrich life for all.

Conclusion

To conclude, here is the list of the top 5 holdings and most recent financial indicators of these positions as of February 14, 2022.

Stock	% of portfolio	Market Cap (USD)	P/E	Net earnings (USDm)	Net earnings y/y	Profit margin
Atlas Corp (ATCO)	45.4%	3.81B	24.8	192	-56.1%	13.6%
Resolute Fst Prods Inc (BB)	14.9%	4.016B	nan	-1104	626.3%	-123.6%
Blackberry Ltd (BB)	14.0%	4.016B	nan	-1104	626.3%	-123.6%
Kennedy-Wilson Holdings Inc (KW)	10.2%	3.095B	7.0	110	-51.4%	22.2%
Micron Technology Inc (MU)	2.1%	101.312B	14.0	5861	118.1%	21.2%

Canadians can find the above stocks on Questrade.

Other investors can use Interactive Brokers or eToro.

Disclosure & Disclaimer: Please take into consideration that this is not financial, investing, or tax advice. The information on this website is for informational and recreational purposes only. Before any financial decision do your own due diligence. Some of the links are affiliates, and I may earn a small commission when you make a purchase through them at no additional cost to you.