Prem Watsa founded Fairfax Financial Holdings in 1985 and has served as chairman and CEO since inception, controlling 42% of voting interest. Born in India and immigrating to Canada in 1972, Watsa formed Hamblin Watsa Investment Counsel in 1984 before founding Fairfax in 1986 with the motto 'Fair and Friendly Acquisitions.' Under his leadership, Fairfax has compounded book value per share at 18.5% annually since 1985, transforming from a small Canadian insurance company into a global financial services holding company. Watsa demonstrated prescient risk management during the 2008 financial crisis, positioning the company with significant credit default swaps as early as 2003 to hedge against mortgage-related risks. The company operates 23 decentralized insurance companies across multiple continents with a culture emphasizing integrity, teamwork, and entrepreneurial spirit.

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Fairfax Financial Holdings operates as a property and casualty insurance and reinsurance holding company with a disciplined value-oriented investment approach. The company's corporate objective is to achieve 15% growth in book value per share over the long term through disciplined underwriting combined with value-oriented investment management. The investment philosophy follows a contrarian long-term value-oriented style, focusing on establishing positions based on intrinsic business value rather than speculation. The company maintains a conservative investment portfolio with 70% of fixed income investments in U.S. treasury and government bonds, emphasizing capital preservation alongside growth. Fairfax operates on decentralized principles with subsidiaries managed independently but coordinated for strategic and financial aspects. The acquisition strategy focuses on fair and friendly transactions with companies that have good management and can operate independently.

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