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  "documentTitle": "Fairfax Financial Holdings Ltd. (FFH)",
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      "text": "We believe a conservative adjustment to book value should be ~$4.5 billion or ~18% lower than reported.",
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      "text": "book value: ~$4.5 billion",
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      "text": "Another Fairfax reality is that for years, it has been badly missing its long-term target of compounding Book Value at 15%. Before adjusting for accounting abuses, from the GFC (December 2008) through 2022, Fairfax's own numbers have it compounding Book Value at only ~9%.",
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      "text": "Muddy Waters is short Fairfax Financial Holdings Limited (FFH:CN) because we find that Fairfax has consistently manipulated asset values and income by engaging in often value destructive transactions to produce accounting gains. We believe a conservative adjustment to book value should be ~-$4.5 billion or ~-18% lower than reported. We see Fairfax as far more akin to GE than to Berkshire Hathaway.",
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      "text": "Likely in response to significant insurance losses in 2017, including at its just-completed \"transformational\" acquisition of Allied World, Fairfax began pulling levers in 2018 to produce paper profits. We see Fairfax continuing to pull levers in 2019, and then greatly amping it up in 2020 in what seems to have been a near-panic at Fairfax. By 2021, Fairfax seems addicted to this behavior, and its financial engineering goes \"gonzo\" throughout 2021 and 2022. We expect that 2023 will ultimately prove to have been similarly egregious.",
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