Canada’s Warren Buffett Adds 7 New Stocks

Fairfax Financial Holdings Ltd.’s (TSX:FFH) Prem Watsa has added seven new stocks to his portfolio; however, the additions might not move the needle for the multi-billion-dollar holding company.

| More on:
Gold king in chess game face with the another silver team on black background (Concept for company strategy, business victory or decision)

Image source: Getty Images

Prem Watsa, often called the Canadian Warren Buffett, has actually surpassed his American counterpart performance. While Buffett has managed to expand his company’s book value by a compounded annual rate of 18.7% since 1965, Watsa has achieved 19.5% annual growth at Fairfax Financial Holdings (TSX:FFH) since 1985.

As a holding company managed by a famous investor, Fairfax’s portfolio changes are a critical metric for investors sizing up the stock. Fortunately, these updates are published once a quarter in the 13F filing.

According to the latest 13F, seven new stocks have been added to the Fairfax portfolio. Here’s a closer look at them all.

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS)

Watsa added a small portion of the portfolio to this banking giant at between $49 and $60. The bank trades at a price-to-book ratio of 1.5 while offering a 4.45% dividend yield. Trailing dividend growth and forward international expansion opportunities make this a great buy for value investors.

Micron Technology (NASDAQ:MU)

Micron is a technology company that trades like a boring utility stock. According to its management team, the demand for the memory storage components it provides will continue to expand as smartphones gain artificial intelligence, better cameras, and 5G technology. Considering those factors, the stock doesn’t deserve to trade at a price-to-earnings (P/E) ratio of 3.5.

US Silica Holdings (NYSE:SLCA)

The producer of commercial silica, a specialized mineral that is a critical input into the oil and gas proppants end market, has had a rough quarter, which has pushed the stock price down more than 50% from its 52-week high. At the moment, US Silica is an underpriced stock with stable earnings and a 1.8% dividend yield, which is probably why Watsa has added it.

Bemis Co. (NYSE:BMS)

The packaging company trades at a P/E ratio of 21.5 and offers a 2.45% dividend. That dividend has been steadily growing for 35 consecutive years, which makes it a highly valuable income stock.

Pacific Biosciences of California (NYSE:PACB)

This biotech company is being acquired by a gene sequencing giant. The buyout price is nearly 71% higher than the 30-day trading average of the stock at the time of the announcement. It’s difficult to tell whether Watsa enjoyed this upward spike or he’s in it for merger-arbitrage opportunity. Either way, it’s lucrative for Fairfax.

Garrett Motion (NYSE:GTX)

Recently spun off from an industrial technology giant, GTX  provides highly engineered turbocharger and electric boosting technologies across vehicle types and sizes. Widely considered a leader in its niche, the stock trades at an insanely low one P/E ratio.  


This little-known Canadian technology company has recently decided to implement a “software-focused mergers & acquisition strategy” to fuel growth. The stock already offers a 3.8% dividend yield, which suggests it’s flying under the radar of most investors.  

Bottom line

Prem Watsa has leveraged the recent dip in stocks to add some interesting and undervalued stocks. However, his biggest holdings remain unchanged, so these smaller additions won’t move the needle much.  

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Vishesh Raisinghani has no position in any stocks mentioned. Bank of Nova Scotia and Fairfax are recommendations of Stock Advisor Canada. Quarterhill is a recommendation of Hidden Gems Canada.  

More on Dividend Stocks

Piggy bank next to a financial report
Dividend Stocks

TFSA Pension: 2 Top Stocks to Buy in a Self-Directed Retirement Fund

Canadian savers are using the TFSA to create their own retirement plan. Younger investors are building savings, while retirees are …

Read more »

Canadian Dollars
Dividend Stocks

Got $300? The 3 Best Passive-Income Stocks to Buy Now

A small but regular investment in top-quality dividend stocks could help you create a portfolio that will offer solid passive …

Read more »

Businessperson's Hand Putting Coin In Piggybank
Dividend Stocks

Top Stocks for Passive Income: How to Earn $366.75 Per Month Tax Free

Canadian pensioners and other investors focused on passive income have an opportunity to use their TFSA to hold top TSX …

Read more »

Payday ringed on a calendar
Dividend Stocks

2 Ways to Make $679 a Month in Passive Income

Passive income is defined as cash flow that’s enough to cover basic living expenses and is generated without any work. …

Read more »

Cogs turning against each other
Dividend Stocks

Boost Your Passive Income With These 3 Safe Dividend Stocks

With the inflation in the United States reaching a multi-decade high, Jerome Powell, the chairman of the Federal Reserve, has …

Read more »

money cash dividends
Dividend Stocks

3 Cheap Dividend Stocks That You Can Buy Under $30

The ongoing selloff provides long-term investors a chance to buy quality stocks at a lower price. Investors have seen a …

Read more »

Glass piggy bank
Dividend Stocks

RRSP Growth: 2 Top TSX Dividend Stocks to Own for Decades

The market pullback is giving RRSP investors a chance to buy some of Canada’s top dividend-growth stocks at reasonable prices. …

Read more »

Close up shot of senior couple holding hand. Loving couple sitting together and holding hands. Focus on hands.
Dividend Stocks

TFSA Retirees: This ETF Will Help You Generate $3,100 in Tax-Free Income Each Year

The TFSA, or Tax-Free Savings Account, is a registered account that was introduced back in 2009. Any withdrawals from the …

Read more »