2 Recent Buys – AQN, FIH.U

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Last week I added to one existing position and initiated a new position.

For the first purchase: I added to my position in Algonquin Power & Utilities Corp (AQN.TO). The stock price has come under a bit of pressure lately, and I managed to add more shares to my sizable position. I added 100 shares @ C$13.00 adding an extra US$46.6 in annual dividends, a yield of 4.38%. I have already detailed various reasons on why I am bullish on this stock, so I will simply point to previous posts on this stock.

Second purchase: I initiated a new position in my portfolio with Fairfax India Holdings Inc (FIH.U.TO). The stock provides exposure to the Indian market, where the economic growth is phenomenal, as India is expected to carry the bastion for global economic growth from China. While the size of Indian economy is not quite the size of China’s there is plenty to like about the Indian economy. Instead of going with an index fund, I decided to choose this as I have been watching this holding company since inception. The holding company is headed by Prem Watsa, touted as Canada’s Warren Buffett, and follows the Berkshire Hathaway model.

I have been following this holding company closely since it was launched in 2014. Instead of simply jumping in, I decided to wait and see how things will progress and what kind of companies will be acquired and I really like the breadth of the companies acquired based on what I’ve seen so far. Investments so far include:

  • IIFL Holdings Ltd – a publicly traded diversified financial services holding company focusing on wealth management,
    capital markets and other activities.
  • Fairchem Specialty Ltd – a publicly traded specialty chemical manufacturer in oleochemicals — used in the paints, inks and adhesives industries, as well as intermediate nutraceutical and health products.
  • Bangalore International Airport Ltd –  a privately held company operating the Bangalore airport under an agreement with the Government of India for a period of 30 years ending in the year 2038 (and the right to renew the agreement for an additional 30 years).
  • NCML – a privately held agricultural commodities storage company that operates in the agriculture value chain by offering end-to-end solutions in grain procurement, testing, storage and collateral management.
  • Sanmar Chemicals Group – a private company and one of the largest suspension polyvinyl chloride (“PVC”) manufacturers in India and now expanding in Egypt. Sanmar also manufactures caustic soda, chloromethanes, refrigerant gases, industrial salt and specialty chemical intermediates.
  • National Stock Exchange of India Ltd – NSE, a private company, is India’s largest stock exchange.

That is a remarkable portfolio for a holding company that is only 3 years old. Fairfax has raised capital (and still continues to) and make some very strong purchases in well established businesses that form an integral part of the Indian economy. This purchase is only the start of my portfolio building and I look forward to buy more shares in the future.

What do you think of these purchases? Do you own these stocks? Share your thoughts below.

Full Disclosure: Long AQN.TO, FIH.U.TO. Our full list of holdings is available here.

8 thoughts on “2 Recent Buys – AQN, FIH.U

  1. JC says:

    It’s great to see you scooping up shares in 2 companies. I’ve never heard of FIH before but it sounds interesting since it follows the WB/BH model and has exposure to India. Definitely something to look into once I get back into the groove of things.

    • Thanks JC. Yeah…its a good model. I also contacted the company and the CFO responded — they have no intention of paying out dividends. I like it 🙂 Just reinvest it back and grow the company!

      R2R

  2. Thanks for the tip on the Fairfax India fund! I have some extra CAD kicking around and have been itching to increase my emerging market exposure (particularly India). I’m definitely going to take a closer look at this. Thanks again for sharing!

  3. May says:

    Good buys. I have owned Fairfax since the IPO.

    You picked up AQN at the recent lows and its up 5% or so since.

    ECI is getting interesting if you want to look at it. For more riskier small cap, Crius Energy Trust (KWH.UN) is very interesting. It fell last week and I added 15000 shares below $9. I have owned it for some time with first purchase around $4.50. Take a look if it’s not on your radar.

    For very patient investors and if you can handle the volatility, Alaris Royalty is a fantastic buy. It’s going through some problem partners but that is more than baked into the price of the stock.

    • Thanks for the pointers…will check them out.

      Good on ya for picking up FIH.U since IPO. As I said, ive been keeping a close eye and wanted to see how things progress before I start dipping my toes. Looking to buy more on weakness.

      R2R

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