You may remember that I added to my Fairfax Financial (FFH/NYSE) stake on June 26. I boosted my share count at the ridiculously-low price of US$92.
Today I sold those shares for US$145.74 -- a gain of more than 58% in less than four months. The stock closed the day in New York at $148.64.
Fear not, Prem Watsa fans. Fairfax remains a full portfolio position -- accounting for more than 5% of total assets. I still like the management and the company. I simply saw the early summer price plunge below US$100 as a short-term event.
I was right (four months is a short time frame for me). But with loads of people shorting the stock, and with a lot of the stock locked up, we can see wild fluctuations over time.
I usually just go with the flow in those cases. Yet when the stock went south of US$100, I couldn't resist boosting my stake with the expectations of making some easy money.
What's more, it's nice to have something taking my mind off of the recent performance of Media General (MEG/NYSE) and Takefuji Corp. (8564/JP or TAKAF/OTC). ;-)
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