Prem Watsa's FP interview. He is very bright and always has had extreme and mostly negative views on the global economy and stock markets i.e. he predicted 10 out of the last 3 bear markets.
"The Bear argument always sounds more intelligent." Charlie Munger
Read it but don't be too scared by it or make any hasty investment decisions. Nobody knows what is going to happen from here. Cheap and safe investments historically have paid off hugely when bought while there is blood running on Wall St.--- clearly the case right now. The toughest part right now is determining what is safe in such extreme conditions.
Prem Watsa's interview.
note: Mr. Watsa is a contemporary of Francis Chou, my favourite mutual fund manager. I don't believe Mr. Chou is completely in agreement with the apocalyptic viewpoint of Mr. Watsa; however, he is a perpetual pessimist and has invested in many of the same equities Mr. Watsa has in the past i.e. Torstar. Chou filed with the Ontario SEC to be allowed to purchase CDS but a bureaucratic delay prevented him from executing the trade (that made FFX several billion in one fell swoop!). Fairfax is also the largest holder of Chou Associates, Chou's main balanced fund. I suspect that they must have a collegial relationship and it shows in their investment decisions.
Disclaimer: my wife and I both own Chou's funds and they make up a large proportion of our portfolio. Chou performs best in bear markets and I intend to hold these for the very long term.
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