Fairfax responds further to short seller report

Following last week’s report by short seller Muddy Waters, Fairfax Financial Holdings has issued another press release relating to the matter.

The company said that it has now reviewed all the 72 pages of the Muddy Waters report and reviewed its allegations and insinuations. The company categorically denies and refutes all of them, without exception, as “false and misleading.”

The company adds that to the best of their knowledge, Muddy Waters has never attended its conference calls and never asked a question, called or written.

“We are neither Berkshire Hathaway, nor GE, as Muddy Waters suggests. We are Fairfax, a strong and enduring company built over 38 years, committed to integrity, customer service, employee welfare and the communities we operate in. We have a unique Fair and Friendly culture throughout our organization. We strive to provide excellent returns to shareholders, and are committed to providing full disclosure in our annual report, highlighting both our pluses and minuses.

We have always been focused on building for the long term and have never given any quarterly guidance.

Over 38 years, our book value per share has compounded by 18.9% per year and our stock price at 18.0% per year. Out of 6,000 companies listed in the U.S. in 1985, when we began, less than 20 companies have a similar record. We have discussed repeatedly in our annual reports that we have not achieved our 15% objective in the last 5 to 10 years. However, we have more than achieved our 15% return over the last several years. Moreover, as those following Fairfax more closely are aware, the foundation of our operating income (underwriting profit, interest and dividend income, and profit from associates) is stronger than ever, and bodes well for the future.

Our company is very strong and the best is yet to come. We look forward to answering any questions in our conference call on Friday, February 16, 2024 at 8:30 a.m. ET.” – Prem Watsa, Chairman and CEO of Fairfax.