Early Life
Prem Watsa was born in Hyderabad, India, in 1950. His father was a teacher and later a school principal, instilling in him the values of hard work, discipline, and faith. Watsa excelled in school, excelling in math and science. He attended the Indian Institute of Technology Madras, earning a degree in chemical engineering in 1971. He later pursued an MBA at the University of Western Ontario's Ivey Business School. To fund his education, he sold air conditioners and furnaces.
Rise to Success
Watsa began his career at Confederation Life Insurance Co. in Toronto as a research analyst. He quickly learned the investment philosophies of Benjamin Graham, which became the bedrock of his investment strategy. In 1984, he co-founded Hamblin Watsa Investment Counsel. In 1985, he acquired Markel Financial, a struggling Canadian trucking insurance company, and renamed it Fairfax Financial Holdings (short for "fair, friendly acquisitions"). Under Watsa's leadership, Fairfax grew into a significant global insurance and investment firm.
Key Business Strategies
Watsa's strategy centers on disciplined underwriting and value investing, with a focus on long-term growth. Fairfax Financial aims for a 15% growth in book value per share over the long term. The company operates on a decentralized basis. Watsa is known for his ethical approach to acquisitions and his focus on building lasting relationships.
Philanthropy
Watsa has shown commitment to society through his volunteer work and philanthropic initiatives. He is a member of the board of Toronto's Hospital for Sick Children and has supported education and universities.