Fairfax Financial

Q3 2013 13F · by Prem Watsa, CEO

As of: Sep 30, 2013
Filed: Nov 14, 2013
US stock: $1.5B · prev $2.4B
Positions: 40 · prev 39
Options notional: $0
Documents: 1· no amendments

Picture93.5% US stock

Full picture · of what this 13F reports is US stock

US stock listed on a US exchange 93.5%
Foreign stock not listed in the US 0.0%
Notes debt, at principal 6.5%
Puts at notional value 0.0%
Calls at notional value 0.0%

Moves20 since the prior filing

+37.6 pp in · −49.7 pp out

New 7 +27.76 pp
Added 2 +9.88 pp
Trimmed 5 −15.17 pp
Exited 6 −34.50 pp

The book

Very concentrated · behaves like 5 equal-sized positions

Very concentrated
Concentrated
Focused
Diversified

High turnover · 112% a year, about 0.9 years per position

Low
Moderate
High

Top 5 positions89% of US stock

BB BlackBerry Limited new+27.54 pp new+27.5427.5%
7AB1 Resolute Forest Products added+9.75 pp added+9.7525.7%
JNJ Johnson & Johnson trimmed−4.21 pp trimmed−4.2117.1%
unresolved Sandridge Energy Inc held held12.8%
NXH Neighborhood Intelligence, Inc. held held6.3%

Positions40 in this filing · 6 exited


BBBlackBerry Limited	27.54%	51,854,700	$411M	new	+27.54 pp	new
7AB1Resolute Forest Products	25.73%	29,044,012	$384M	added0%	+9.75 pp	2 q
JNJJohnson & Johnson	17.09%	2,941,741	$255M	trimmed−50%	−4.21 pp	2 q
unresolvedSandridge Energy Inc	12.75%	32,463,200	$190M	held	—	2 q
NXHNeighborhood Intelligence, Inc.	6.33%	3,184,677	$94M	held	—	2 q
unresolvedExco Resources Inc	4.88%	10,812,200	$73M	held	—	2 q
unresolvedBaldwin & Lyons Inc Cl B	1.57%	969,875	$23M	held	—	2 q
BCEBCE, Inc.	0.77%	268,300	$11M	held	—	2 q
KWKennedy-wilson Holdings, Inc.	0.50%	400,000	$7M	held	—	2 q
unresolvedDell Inc	0.48%	520,000	$7M	trimmed−94%	−4.53 pp	2 q
PFEPfizer Inc.	0.45%	235,000	$7M	held	—	2 q
CRESYCresud SA	0.42%	723,012	$6M	held	—	2 q
WFCWells Fargo & Co.	0.19%	69,300	$3M	trimmed−95%	−2.10 pp	2 q
BRK.BBERKSHIRE HATHAWAY Class B	0.16%	21,100	$2M	held	—	2 q
CTBCooper Tire & Rubber Co.	0.14%	69,500	$2M	added×9.9	+0.13 pp	2 q
unresolvedDex Media Inc New	0.09%	159,198	$1M	held	—	2 q
unresolvedU S G Corp	0.08%	42,800	$1M	held	—	2 q
BRK.ABerkshire Hathaway Inc.	0.07%	6	$1M	held	—	2 q
LRNStride, Inc.	0.07%	33,133	$1M	new	+0.07 pp	new
USBU.S. Bancorp	0.07%	30,000	$1M	trimmed−99%	−4.34 pp	2 q
CCitigroup Inc.	0.06%	20,000	$970,000	held	—	2 q
NYTNew York Times Co.	0.06%	70,000	$880,000	held	—	2 q
unresolvedRUE21 Inc	0.06%	21,000	$847,000	new	+0.06 pp	new
ORIOld Republic International Corporation	0.05%	45,000	$693,000	held	—	2 q
MRKMerck & Co., Inc.	0.04%	12,000	$571,000	held	—	2 q
NYCBFlagstar Bank, National Association	0.04%	40,000	$605,000	held	—	2 q
unresolvedOnyx Pharmaceuticals Inc	0.04%	4,500	$561,000	new	+0.04 pp	new
HOLXHologic Inc	0.03%	20,000	$413,000	held	—	2 q
PTENPatterson-UTI Energy Inc	0.03%	19,000	$406,000	held	—	2 q
SLMSLM Corporation	0.03%	15,000	$374,000	trimmed−25%	+0.01 pp	2 q
unresolvedSpreadtrum Communications In	0.03%	16,500	$502,000	new	+0.03 pp	new
unresolvedCninsure Inc	0.02%	45,000	$231,000	held	—	2 q
MBIMBIA Inc.	0.02%	30,000	$307,000	held	—	2 q
unresolvedNam Tai Property Inc	0.02%	35,000	$272,000	held	—	2 q
unresolvedNew Oriental Ed & Tech Grp I	0.02%	11,100	$276,000	held	—	2 q
unresolvedProvident New York Bancorp	0.02%	25,000	$272,000	held	—	2 q
UPLUltra Petroleum Corp	0.02%	13,400	$276,000	held	—	2 q
BPBP p.l.c.	0.01%	5,000	$210,000	new	+0.01 pp	new
IBMInternational Business Machines Corporation	0.01%	1,200	$222,000	held	—	2 q
NEUNewMarket Corporation	0.01%	750	$216,000	new	+0.01 pp	new
unresolvedResearch In Motion	—	−51,854,700	—	exited	−22.71 pp	—
unresolvedLevel 3 Communications Inc	—	−12,071,803	—	exited	−10.68 pp	—
WMTWalmart Inc.	—	−220,000	—	exited	−0.69 pp	—
unresolvedRyanair Holdings PLC ADR	—	−189,900	—	exited	−0.41 pp	—
unresolvedHewlett Packard Co	—	−9,400	—	exited	−0.01 pp	—
unresolvedCfs Bancorp Inc.	—	−10,000	—	exited	0.00 pp	—