This analysis provides an in-depth look into Prem Watsa's investment portfolio, specifically focusing on the changes and strategies implemented during the second quarter of 2025. The total value of the portfolio saw a slight increase, reaching approximately $1.87 billion, characterized by a significant concentration in a few select companies. This report highlights key stock movements and offers insights into Watsa's long-term investment philosophy, which prioritizes disciplined and concentrated holdings, alongside global diversification efforts beyond U.S. markets.
Investment Portfolio Developments in Q2 2025
During the second quarter of 2025, prominent investor Prem Watsa, through his company Fairfax Financial Holdings, modestly expanded his 13F portfolio to a valuation of $1.87 billion. A striking feature of this portfolio is its pronounced concentration in a few major holdings, specifically Orla Mining, Occidental Petroleum, and CVS Health, which collectively represent roughly 54% of the total assets. This strategy underscores Watsa's conviction in the enduring value of these core investments.
Notable adjustments within the portfolio included significant increases in Fairfax's stakes in Occidental Petroleum and Kraft-Heinz. These additions were made even as both stocks traded below Watsa’s initial average acquisition prices, indicating a strong belief in their inherent, long-term value despite current market fluctuations. Conversely, there were slight reductions in positions related to Blackberry and Taiwan Semi, suggesting strategic rebalancing rather than a fundamental shift away from these companies.
The commitment to core holdings was further evidenced by the steady maintenance of substantial investments in Orla Mining, CVS Health, and Cleveland-Cliffs. This consistent approach reflects Watsa's disciplined investment philosophy, favoring a concentrated allocation of capital to businesses he identifies as having robust underlying value. It is important to note that Fairfax Financial Holdings' U.S. 13F holdings represent only a fraction of its broader $70 billion investment portfolio. A significant portion of Fairfax’s total investments are strategically diversified globally, with notable allocations in emerging markets such as Greece and India, contributing to a truly international investment footprint.
The meticulous management of Fairfax Financial's portfolio under Prem Watsa's guidance provides valuable lessons in long-term value investing. His willingness to increase stakes in companies that are temporarily undervalued, coupled with a highly concentrated and globally diversified portfolio, demonstrates a strategic patience and deep analytical conviction. This approach can serve as an inspiration for investors seeking to build resilient portfolios amidst market volatility, emphasizing thorough research and a steadfast commitment to intrinsic value.