{"id":427480,"date":"2026-01-23T06:24:13","date_gmt":"2026-01-23T06:24:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/427480\/"},"modified":"2026-01-23T06:24:13","modified_gmt":"2026-01-23T06:24:13","slug":"bmo-downgrades-firm-led-by-canadas-warren-buffett-fairfax-shares-drop","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/427480\/","title":{"rendered":"BMO downgrades firm led by Canada’s Warren Buffett; Fairfax shares drop"},"content":{"rendered":"\n

Shares of Fairfax Financial Holdings (FFH.TO<\/a>) fell as much as 9.5 per cent on Thursday, following a downgrade from BMO Capital Markets.<\/p>\n

Toronto-based Fairfax is led by Canadian billionaire businessman Prem Watsa, who is often called Canada’s Warren Buffett, in part for his focus on the insurance industry. Fairfax has invested in a wide array of Canadian companies, including BlackBerry and Recipe Unlimited, owners of Swiss Chalet, Harvey’s, and The Keg.<\/p>\n

In a note to clients on Thursday, BMO’s Tom Mackinnon warned the company\u2019s investments in the insurance industry face a challenging environment.<\/p>\n

\u201cWith softening global insurance\/reinsurance markets, declining underwriting income, moderating investment income growth\/muted investment gains outlook, we see limited growth\/multiple expansion,\u201d Mackinnon wrote.<\/p>\n

BMO cut its price target on Fairfax\u2019s Toronto-listed stock to $2,500 per share from $2,600, while moving its rating to \u201cmarket perform\u201d from \u201coutperform.\u201d<\/p>\n

The stock closed 4.7 per cent lower on Thursday at $2,308.41 per share, after a steeper decline at the start of the session.<\/p>\n

Toronto – Delayed Quote \u2022 USD <\/p>\n

2,308.41 -113.94 (-4.70%) <\/p>\n

At close: January 22 at 4:00:00 p.m. EST <\/p>\n

The company\u2019s stock has gained about 14 per cent over the past 12 months, besting shares of Buffett\u2019s Berkshire Hathaway (BRK-B<\/a>), which have risen about 4.7 per cent during that time.<\/p>\n

Fairfax joined the S&P\/TSX 60 Index (TX60.TS<\/a>) on Dec. 22, marking the company as one of Canada\u2019s largest, while raising exposure to investors and exchange-traded funds (ETFs) that track the index.<\/p>\n

In November, Fairfax said its net insurance revenue for the third quarter increased nearly five per cent year-over-year. The company reported overall net earnings for the three months ended Sept. 30 rose almost 12 per cent on an annualized basis to US$1.03 billion.<\/p>\n

Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on X @jefflagerquist<\/a>.<\/p>\n