Figuring out where to invest savings can feel overwhelming, especially with the TSX today offering everything from gold miners to tech giants. However, sometimes, the best opportunities are the ones that are hiding in plain sight. For me, one name stands above the rest when it comes to stability, value, and long-term potential: Fairfax Financial Holdings (TSX:FFH). If I were putting my savings to work today, this is exactly where I’d look.
Source: Getty Images
About Fairfax
Fairfax is not your average insurance company. It’s run by Prem Watsa, often called the “Canadian Warren Buffett,” thanks to his value-investing style and long-term view. What makes Fairfax unique is its structure. It owns a range of insurance companies, but what really sets it apart is how it uses the float, money collected from insurance premiums before claims are paid out, to invest in a variety of assets, including equities, bonds, and even private ventures.
This approach has worked incredibly well over the years. The company has grown its book value per share consistently on the TSX today, rewarding long-term investors with compounding returns. And despite market volatility, Fairfax has continued to show resilience. As of its most recent earnings report for the first quarter (Q1) of 2025, the company reported net earnings of $945.7 million, or $42.70 per diluted share. That’s up from $776.5 million, or $35.26 per share, the year before. The results were largely driven by investment gains and strong underwriting performance.
Book value per basic share rose to $1,080.38 as of Mar. 31, 2025, up from $1,059.60 at year-end 2024. This represents a 3.5% increase even after paying out a hefty $15 per share dividend. The company also reported a consolidated combined ratio of 93.5%, a strong result in the insurance world, as anything under 100% means the company is taking in more in premiums than it’s paying out in claims.
Growth and income
The stock trades around $2,281 per share on the TSX today at writing, not far from its all-time high of $2,385.66. Its market cap sits at approximately $51 billion. Some might look at that high price tag and hesitate, but price alone doesn’t determine value. What matters is what you’re getting for that money, and with Fairfax, you’re getting one of the most reliable compounders on the TSX today.
Another appealing feature? Fairfax pays a dividend. It’s not massive, currently around 1.29%, but it’s consistent. And when it does raise or issue special dividends, it tends to do so with confidence. That’s a sign of a well-managed company that knows how to treat shareholders. Plus, even if the yield isn’t sky-high, the capital gains more than make up for it. The stock is up roughly 30% over the past 12 months and still looks attractive, thanks to its underlying fundamentals.
From a diversification standpoint, Fairfax offers something that many investors crave: access to a variety of global markets, industries, and asset classes all rolled into one. Through its holdings, it has exposure to everything from tech startups to infrastructure plays. This helps balance risk and allows the company to seek out returns where others aren’t looking on the TSX today. It also means that Fairfax doesn’t rely on just one part of the economy to do well. That kind of built-in protection is valuable, especially if you’re using savings you can’t afford to lose.
Bottom line
So, why would I invest my savings in Fairfax right now? Because it offers something most stocks don’t: a blend of safety, return potential, and smart leadership. It’s the kind of stock you can buy and forget about until you check back in five years and realize it’s grown quietly in the background. That’s the power of compounding and good management.
For Canadians looking to make the most of their hard-earned savings, Fairfax might just be the smartest place to start. It’s the kind of stock that can serve as a cornerstone in any long-term portfolio. It’s boring but in the best way possible. And sometimes, boring is exactly what your savings need.
