I once posted that if I had a portfolio 100% in cash, the first thing I'd do is put 5% into Fairfax Financial Holdings (FFH). A reader commented that anyone doing that would have 95% and 5% wallpaper.
Even holding General Motors (NYSE:GM) never got the negative reaction my being a shareholder of Fairfax has. That's saying something.
And I was reminded of Fairfax yesterday when I came across Richard Gibbons' column in The Motley Fool.
The rest of the position -- the entire original position -- has been maintained. Fairfax Financial closed Friday at $232.42.
Anything could happen. Fairfax could even really turn out to be wallpaper one day. But I don't think so. Anyone thinking different doesn't need to be a shareholder. You see, not having bought Fairfax at lower prices is just an opportunity cost (I've had plenty of those over the years).
Being short Fairfax could cost you lots more.
FFH 1-yr chart