Thanks to Manlobbi for setting up this board during an interesting time for Fairfax.

The shares have been unusually volatile in the lead-up to its Q4 earnings report, due Thursday, Feb. 15 after market close.

This volatility was set off by a critical report from short-seller Muddy Waters last Thursday, Feb. 8, which can be downloaded here:

muddywatersresearch.com - Mw is short ffh

The report alleges that Fairfax has overstated its book value through a variety of means, including inflating the value of private investments. Fairfax published a brief response on its website today calling the allegations "false and misleading":

fairfax.ca - Fairfax responds further to short seller report

Pending the earnings report, Mr. Market seems inclined to take Fairfax's side in the dispute. After shares fell as much as 12% after the report's publication, from the U.S. $1,040 range to the low $900s, they are up more than 5% today to about $985 intra-day.

Even after this dip, the shares are up more than 50% over the past year. Here is Prem Watsa's most recent letter to shareholders, from the 2022 annual report:

fairfax.ca - Fairfax Financial s Shareholders Letter updated with attachments

A new one will be coming with the 2023 report.

Here is a detailed look at the business going into earnings from an insurance industry analyst who rates the shares a hold pending earnings and a more thorough rebuttal of the Muddy Waters short case:

seekingalpha.com - Fairfax positive outlook despite accounting fears