Prem Watsa clears air over charges by Muddy Waters, flaunts good show
economictimes.indiatimes.comPrem Watsa strongly refuted the allegations levelled by short seller Muddy Waters and firmly stood by his company's track record of returns to investors, amid charges of accounting abuse against Fairfax Financial Holdings, a Toronto-listed investment firm he founded four decades ago.
Fairfax Financial Holdings has invested $7 billion (about Rs 58,100 crore at current exchange rates) in India.
«We are neither Berkshire Hathaway nor GE, as Muddy Waters suggests,» said Watsa, who earned the moniker of Canada's Warren Buffet because of his hugely successful track record as an investor.
Muddy Waters had alleged in a report on February 8 that Fairfax Financial Holdings was the «GE of Canada» and not the Berkshire Hathaway that it was touted to be, sending the company's shares tumbling 12%. The company's shares pared half the losses in early trading in Toronto on Monday.
GE settled $200 million in penalties from the US stock market regulator in 2020 for alleged accounting violations.
«Over 38 years, our book value per share has compounded by 18.9% and our stock price at 18% per year. Out of 6,000 companies listed in the US in 1985, less than 20 companies have a similar record,» said Watsa.
Fairfax Financial Holdings owns multiple companies in India, including Thomas Cook, CSB Bank, Bangalore International Airport, Quess Corp and Digit Insurance.
Terming the allegations of the short seller «false and misleading», Fairfax Financial Holdings said in a
