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Prem Watsa is founder, chairman and chief executive officer of Fairfax Financial Holdings. In his asset management company, he has stock holdings in the amount of $2.7 billion under management. Within the second quarter of the year, Watsa has increased 2 stock positions and initiated 4 new positions. Research In Motion (RIMM) and Intel (NASDAQ:INTC) are the buys effecting the biggest change to the portfolio. He sold 2 companies and reduced 2 stock positions of which International Coal Group (NYSE:ICO) was the position with the largest influence for the portfolio. Here are the biggest portfolio-weighted buys and sells:

Buys:

Research In Motion (RIMM) was increased by 305.49 percent. Total change to portfolio: 6.69 percent.

Intel (INTC) was initiated. Total change to portfolio: 0.44 percent.

AbitibiBowater (ABH) was increased by 2.91 percent. Total change to portfolio: 0.37 percent.

Sells:

International Coal Group (ICO) was totally sold out. Total change to portfolio: 9.14 percent.

Stewart Enterprises (NASDAQ:STEI) was totally sold out. Total change to portfolio: 0.31 percent.

Level 3 Communications (NYSE:LVLT) was reduced by 0.65 percent. Total change to portfolio: 0.08 percent.

Prem Watsa's biggest sector allocation is focused on Technology (27.18 percent), Information Technology (14.37 percent) and Consumer Goods (13.59 percent).

Here are his biggest portfolio holdings as of Q2 2011, with fundamental details:

1. Dell (NASDAQ:DELL) is acting within the personal computers industry. The company has a market capitalization of $27.1 billion, generates revenues in an amount of $61.8 billion and a net income of $3.6 billion. Its P/E ratio is 8.0, forward price-earnings ratio is 7.6, Price/Sales is 0.4 and Price/Book ratio is 3.3. Dividend Yield: 0 percent. Years of Consecutive Dividend Increasing: 0 Years. 5-Year Dividend Growth: 0 percent. The company has never paid dividends. Portfolio weighting: 13.93 percent.

2. AbitibiBowater (ABH) is acting within the paper and paper products industry. The company has a market capitalization of $1.7 billion, generates revenues in the amount of $4.9 billion and has a net income of $2.6 billion. Its P/E ratio is 0.6, forward price-earnings ratio is 6.7, Price/Sales 0.3, and Price/Book ratio 0.4. Dividend Yield: 0 percent. Years of Consecutive Dividend Increasing: 0 Years. 5-Year Dividend Growth: 0 percent. The company never paid dividends. Portfolio weighting: 13.06 percent.

3. Johnson & Johnson (NYSE:JNJ) is acting within the major drug manufacturing industry. The company has a market capitalization of $180.2 billion, generates revenues in the amount of $63.4 billion and a net income of $11.6 billion. Its P/E ratio is 15.7, forward price-earnings ratio is 12.5, Price/Sales ratio is 2.8, and Price/Book ratio is 2.9. Dividend Yield: 3.5 percent. Years of Consecutive Dividend Increasing: 48 Years. 5-Year Dividend Growth: 9.5 percent. The company has paid dividends since 1944. Portfolio weighting: 12.68 percent.

Take a closer look at Prem Watsa’s full portfolio. He has 41 stocks with a total worth of $2.72 billion.

Source: Prem Watsa's Favored Stock Holdings In Q2