Prem Watsa - Fairfax Financial Holdings Portfolio Q2’2025: Top Holdings & Recent Changes
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Prem Watsa, often called the “Canadian Warren Buffett,” continues to steer Fairfax Financial Holdings with a disciplined, contrarian approach. His Q2’2025 portfolio showcases a high-conviction strategy, with $1.87 billion allocated across 28 positions and a remarkable 90.7% concentration in the top ten holdings. Recent moves reveal bold bets in commodities, energy, and select turnaround stories, reflecting Watsa’s signature value-driven philosophy.
Portfolio Overview: Contrarian Conviction and Concentration
Portfolio Highlights (Q2’2025): - Market Value: $1,871.5M - Top 10 Holdings: 90.7% - Portfolio Size: 28 -1 - Average Holding Period: 20 quarters - Turnover: 17.9%
Fairfax Financial’s portfolio remains a study in focused investing, with nearly all capital concentrated in a handful of high-conviction bets. The average holding period of 20 quarters underscores Watsa’s patience and long-term orientation, while a moderate turnover rate of 17.9% signals selective repositioning rather than wholesale change.
This quarter, the portfolio size decreased by one position, suggesting ongoing refinement and a willingness to trim lower-conviction holdings. The top ten stocks account for over 90% of assets, a level of concentration that amplifies both risk and potential reward—a hallmark of Watsa’s contrarian style. Fairfax’s approach continues to favor sectors often overlooked by mainstream investors, including mining, energy, and distressed technology.
Top Holdings Analysis: Commodities, Energy, and Turnaround Plays
The portfolio’s backbone is ORLA MINING LTD, commanding 29.9% of assets and reflecting Watsa’s bullish stance on gold and mining. Occidental Petroleum Corporation 13.6% saw a modest addition of 0.50%, reinforcing Fairfax’s commitment to energy amid global supply uncertainties. BlackBerry Limited 10.0% remains a significant holding, though Watsa reduced exposure by 12.71%—a notable shift as the company continues its turnaround efforts.
The Kraft Heinz Company 6.7% received a substantial 45.40% increase, signaling renewed confidence in consumer staples. Molson Coors Beverage Company 3.1% was also added to, up 0.99%, while Helmerich & Payne, Inc. 0.8% saw a 25.84% boost, reflecting opportunistic buying in energy services.
Fairfax initiated new positions in VANGUARD INDEX FUNDS 2.2% and PENN Entertainment, Inc. 0.1%, diversifying into passive index exposure and gaming, respectively. Meanwhile, Taiwan Semiconductor Manufacturing Company Limited 1.1% was trimmed by 33.87%, indicating caution in the technology sector.
Other notable moves include a dramatic 82.06% increase in Lifeway Foods, Inc. 0.0%, a micro-cap bet on health and wellness. Stable positions in CVS Health Corporation 10.0%, Cleveland-Cliffs Inc. 6.1%, KENNEDY-WILSON HOLDINGS INC 4.8%, and ATS Corporation 4.2% round out the top ten, each reflecting Fairfax’s preference for established, cash-generative businesses.
What the Portfolio Reveals About Current Strategy
- Quality and Value Focus: Watsa continues to favor companies with tangible assets, strong cash flows, and turnaround potential, as seen in mining, energy, and consumer staples.
- Sector Concentration: Heavy allocations to commodities and energy signal a contrarian bet on inflation and global supply constraints.
- Long-Term Orientation: With an average holding period of 20 quarters, Fairfax demonstrates patience and conviction, riding out volatility for outsized gains.
- Opportunistic Adjustments: Selective adds (KHC, HP, LWAY) and trims (BB, TSM) show active risk management and responsiveness to changing fundamentals.
- Diversification Moves: New positions in VANGUARD INDEX FUNDS and PENN Entertainment suggest a willingness to balance concentrated bets with broader market exposure.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| ORLA MINING LTD | $559.6M | 29.9% | No change |
| Occidental Petroleum Corporation (OXY) | $254.1M | 13.6% | Add 0.50% |
| CVS Health Corporation (CVS) | $187.0M | 10.0% | No change |
| BlackBerry Limited (BB) | $186.8M | 10.0% | Reduce 12.71% |
| The Kraft Heinz Company (KHC) | $126.1M | 6.7% | Add 45.40% |
| Cleveland-Cliffs Inc. (CLF) | $113.2M | 6.1% | No change |
| KENNEDY-WILSON HOLDINGS INC | $90.5M | 4.8% | No change |
| ATS Corporation (ATS) | $79.1M | 4.2% | No change |
| Molson Coors Beverage Company (TAP) | $58.6M | 3.1% | Add 0.99% |
Fairfax’s top ten positions account for over 90% of the portfolio’s value, with ORLA MINING LTD alone representing nearly a third. This level of concentration is rare among institutional investors and reflects Watsa’s willingness to take outsized bets where he sees deep value. The table also highlights active management, with significant increases in Kraft Heinz and Helmerich & Payne, and a notable reduction in BlackBerry, balancing conviction with risk control.
Investment Lessons from Prem Watsa’s Contrarian Approach
- Concentration Pays When You Know the Business: Watsa’s willingness to allocate nearly 30% to a single mining company underscores the importance of deep research and conviction.
- Patience Is a Virtue: An average holding period of five years allows investments to compound and recover from short-term volatility.
- Opportunistic Buying: Fairfax’s selective adds and new positions show the value of acting decisively when market sentiment is negative.
- Risk Management Through Trims: Reductions in BlackBerry and TSM demonstrate the importance of reassessing positions as fundamentals evolve.
- Diversification as a Safety Valve: Even in a concentrated portfolio, adding index funds and new sectors helps mitigate risk.
Looking Ahead: What Comes Next?
With $1.87 billion deployed and a handful of new positions, Fairfax Financial is well-positioned to capitalize on market dislocations. The portfolio’s heavy exposure to commodities and energy suggests Watsa expects continued volatility and inflationary pressures. Cash reserves and selective turnover provide flexibility for future opportunities, while recent moves hint at a cautious optimism in consumer staples and gaming.
Investors should watch for further shifts in technology exposure and potential new bets in undervalued sectors. Fairfax’s disciplined approach and willingness to zig when others zag remain its defining strengths.
FAQ about Prem Watsa’s Fairfax Financial Portfolio
Q: Why did Fairfax reduce its position in BlackBerry this quarter?
Fairfax trimmed its stake in BlackBerry by 12.71%, likely reflecting ongoing challenges in the company’s turnaround and a desire to rebalance risk.
Q: How concentrated is Fairfax’s portfolio compared to other superinvestors?
Fairfax’s top ten holdings represent 90.7% of assets, making it one of the most concentrated portfolios among major funds. This amplifies both risk and potential reward.
Q: What is Prem Watsa’s investment philosophy?
Prem Watsa is known for contrarian, value-driven investing, focusing on distressed assets, long-term compounding, and deep research.
Q: Which sectors does Fairfax favor right now?
The portfolio is heavily weighted toward commodities, energy, and consumer staples, with selective exposure to technology, gaming, and health.
Q: How can I track Fairfax’s portfolio changes?
ValueSense provides real-time tracking of superinvestor portfolios based on quarterly 13F filings. Note that filings have a 45-day reporting lag, so recent moves may not be immediately reflected. Visit Fairfax Financial’s portfolio for updates.
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