Insights from the First Quarter of 2025

Prem Watsa (Trades, Portfolio), a renowned value investor and the driving force behind Fairfax Financial, recently submitted his 13F filing for the first quarter of 2025. Born in Mangalore, India, Watsa's journey to becoming a financial guru began with his education in chemical engineering at the Indian Institute of Technology. He later pursued an MBA at the University of Western Ontario, where he was introduced to the principles of value investing. Inspired by Warren Buffett (Trades, Portfolio)'s strategies, Watsa founded Fairfax Financial, a holding company focused on property and casualty insurance, reinsurance, and investment management. His investment philosophy emphasizes conservative value investing, aiming for high returns on invested capital and long-term shareholder value.

Warning! GuruFocus has detected 2 Warning Sign with ORLA.Prem Watsa's Strategic Moves: A Closer Look at Cleveland-Cliffs Inc.

Summary of New Buy

Prem Watsa (Trades, Portfolio) added a total of one stock to his portfolio this quarter:

The most significant addition was Lifeway Foods Inc (NASDAQ:LWAY), with 17,367 shares, accounting for 0.02% of the portfolio and a total value of $424,620.

Key Position Increases

Watsa also increased his stakes in three stocks, with notable changes including:

The most significant increase was in Cleveland-Cliffs Inc (NYSE:CLF), with an additional 9,000,000 shares, bringing the total to 14,899,273 shares. This adjustment represents a 152.56% increase in share count, a 4.01% impact on the current portfolio, and a total value of $122,472,020. The second largest increase was in The Kraft Heinz Co (NASDAQ:KHC), with an additional 45,000 shares, bringing the total to 3,359,000. This adjustment represents a 1.36% increase in share count, with a total value of $102,180,780.

Summary of Sold Out

Prem Watsa (Trades, Portfolio) completely exited three holdings in the first quarter of 2025:

TFI International Inc (NYSE:TFII): Sold all 13,300 shares, resulting in a -0.11% impact on the portfolio. Xeris Biopharma Holdings Inc (NASDAQ:XERS): Liquidated all 139,687 shares, causing a -0.03% impact on the portfolio.

Key Position Reduces

Watsa also reduced his position in two stocks, with significant changes including:

Reduced Colliers International Group Inc (NASDAQ:CIGI) by 3,000 shares, resulting in a -12% decrease in shares and a -0.03% impact on the portfolio. The stock traded at an average price of $131.06 during the quarter and has returned -3.62% over the past three months and -6.65% year-to-date. Reduced KKR & Co Inc (NYSE:KKR) by 3,500 shares, resulting in a -14.89% reduction in shares and a -0.03% impact on the portfolio. The stock traded at an average price of $137.58 during the quarter and has returned -8.06% over the past three months and -12.52% year-to-date.

Story Continues

Portfolio Overview

As of the first quarter of 2025, Prem Watsa (Trades, Portfolio)'s portfolio included 29 stocks. The top holdings were 28.57% in Orla Mining Ltd (ORLA), 16.12% in Occidental Petroleum Corp (NYSE:OXY), 9.96% in CVS Health Corp (NYSE:CVS), 9.52% in BlackBerry Ltd (NYSE:BB), and 6.64% in Cleveland-Cliffs Inc (NYSE:CLF).Prem Watsa's Strategic Moves: A Closer Look at Cleveland-Cliffs Inc.

The holdings are mainly concentrated in 10 of the 11 industries: Basic Materials, Energy, Healthcare, Technology, Consumer Defensive, Real Estate, Consumer Cyclical, Industrials, Financial Services, and Communication Services.Prem Watsa's Strategic Moves: A Closer Look at Cleveland-Cliffs Inc.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.

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