The Biggest Insider Buy I've Ever Seen Because the purchase was so enormous, Fairfax was obligated to issue a press release. CEO Watsa said... At our [annual general meeting] and on our first quarter earnings release call, I said that our shares are 'ridiculously cheap.' That statement reflected my recognition that in the 35 years since Fairfax began, I have never seen Fairfax shares sell at a bigger discount to their intrinsic value than they have recently. I have now backed up my strong words by purchasing close to US$150 million of Fairfax shares in the market over the last few days, as I believe that this will be an excellent long-term investment. Watsa's average purchase price was $308 per Fairfax share. I have followed Watsa and Fairfax for years, and I can tell you that Watsa is called the "Canadian Warren Buffett" for good reason... Anyone who owned Fairfax shares at their inception in 1985 and held them until now earned an annualized 17.8% in those 35 years. Like Buffett's Berkshire Hathaway (NYSE: BRK-B), Fairfax is a reinsurance company that accumulates cash by selling insurance premiums. That cash is then deployed into what Watsa views as the best opportunities. Given the company's long-term results, he has clearly invested that money very well. But over the past 10 years, like many traditional value investors, Watsa has underachieved by his historical standards. Fairfax's investment portfolio greatly underperformed during the bull run that began in 2010. That cold streak has driven Fairfax's share price down. Historically, Fairfax has traded at close to 1.2 times its book value. Today, it trades at just 0.7 times book value, which means that shares need to rise 70% to get back to the norm. Watsa just bet $150 million on that upward revaluation... This insider bet would have even Peter Lynch's head turning. Good investing, Jody P.S. Tracking insider buying is such a powerful way to earn outsized returns that investing expert Alexander Green calls it the "smartest investment strategy of all time." In fact, his April investment summit with Bill O'Reilly centered on this powerful technique - and in the months since, it has been watched online more than 3 million times. Click here to learn how Alex's strategy could show you the chance to double your money 10 times in the next year. | 
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