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Significant Shifts in Prem Watsa's Portfolio Highlighted by Micron Technology's -18.68% Impact

Insights from the First Quarter of 2024 13F Filing

Prem Watsa (Trades, Portfolio), renowned for his conservative investment philosophy, recently disclosed his first quarter 2024 portfolio adjustments through a 13F filing. Born in India and a proponent of value investing, Watsa is often referred to as the "Canadian Warren Buffett (Trades, Portfolio)." His firm, Fairfax Financial, focuses on long-term value creation and prudent investment, leveraging insurance float akin to Buffett's strategy at Berkshire Hathaway. This quarter's filing reveals significant moves, particularly in technology and mining sectors.

Introduction to Prem Watsa (Trades, Portfolio)

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Prem Watsa (Trades, Portfolio), the founder of Fairfax Financial, is a notable figure in the investment world, often compared to Warren Buffett (Trades, Portfolio) for his focus on long-term value investing and insurance-based investment strategy. Watsa's journey from arriving in Canada with just $8, to establishing a global financial empire, underscores his deep understanding of market dynamics and conservative investment approach. His strategy involves disciplined underwriting and investing assets for total return, aiming for both realized and unrealized gains over an extended period.

Summary of New Buys

Prem Watsa (Trades, Portfolio) made a notable new addition to his portfolio this quarter:

  • Spirit AeroSystems Holdings Inc (NYSE:SPR) with 152,000 shares, representing 0.45% of the portfolio and valued at approximately $5.48 million.

Key Position Increases

Watsa's strategy this quarter also included increasing stakes in several companies:

  • Orla Mining Ltd (ORLA) saw an addition of 17,958,038 shares, bringing the total to 55,655,229 shares. This adjustment significantly increased the share count by 47.64%, impacting the portfolio by 5.5% with a total value of approximately $209.66 million.

  • Capri Holdings Ltd (NYSE:CPRI) with an additional 162,200 shares, bringing the total to 188,200. This represents a 623.85% increase in share count, valued at approximately $8.52 million.

Summary of Sold Out Positions

In the first quarter of 2024, Prem Watsa (Trades, Portfolio) exited several positions:

  • Meta Platforms Inc (NASDAQ:META), selling all 21,600 shares, impacting the portfolio by -0.52%.

  • Osisko Gold Royalties Ltd (NYSE:OR), liquidating all 160,000 shares, with a -0.16% portfolio impact.

Key Position Reductions

Significant reductions were made in the following stocks:

  • Micron Technology Inc (NASDAQ:MU) was reduced by 3,216,549 shares, a -82.23% decrease, impacting the portfolio by -18.68%. The stock traded at an average price of $90.51 during the quarter and has seen a return of 52.67% over the past three months and 46.39% year-to-date.

  • Vanguard S&P 500 ETF (VOO) saw a reduction of 32,000 shares, an -80% decrease, impacting the portfolio by -0.95%. The stock traded at an average price of $457.68 during the quarter, with returns of 4.96% over the past three months and 10.13% year-to-date.

Portfolio Overview

As of the first quarter of 2024, Prem Watsa (Trades, Portfolio)'s portfolio included 43 stocks. The top holdings were:

  • 31.84% in Occidental Petroleum Corp (NYSE:OXY)

  • 17.06% in Orla Mining Ltd (ORLA)

  • 10.42% in BlackBerry Ltd (NYSE:BB)

  • 9.29% in Kennedy-Wilson Holdings Inc (NYSE:KW)

  • 6.67% in Micron Technology Inc (NASDAQ:MU)

The portfolio is mainly concentrated across 10 industries, with significant investments in Energy, Technology, and Basic Materials.

Significant Shifts in Prem Watsa's Portfolio Highlighted by Micron Technology's -18.68% Impact
Significant Shifts in Prem Watsa's Portfolio Highlighted by Micron Technology's -18.68% Impact
Significant Shifts in Prem Watsa's Portfolio Highlighted by Micron Technology's -18.68% Impact
Significant Shifts in Prem Watsa's Portfolio Highlighted by Micron Technology's -18.68% Impact
Significant Shifts in Prem Watsa's Portfolio Highlighted by Micron Technology's -18.68% Impact
Significant Shifts in Prem Watsa's Portfolio Highlighted by Micron Technology's -18.68% Impact

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.