Three Stocks to Buy in This Bear

There’s a silver lining to the current bear market…

Like I said last week, it’s created great buying opportunities. By that, I don’t mean profitless tech and speculative crypto. If a company can’t make money in good times, it’s tough to imagine how it would make money now.

Still, there are plenty of quality, profitable companies available at cheap prices. Here are three I like right now…

  • I call my first recommendation “Canada’s answer to Berkshire Hathaway.”

Fairfax Financial (FRFHF) is a Canadian insurance conglomerate. It follows the same model Berkshire has with insurance: It owns a slew of insurance companies, and it puts the premiums it collects in higher-growth investments.

Toronto Life once called Fairfax’s CEO, Prem Watsa, “the richest, savviest guy you’ve never heard of.” Watsa owns 9.8% of the company, which is a positive sign. It means he wins when shareholders win.

I first recommended Fairfax Financial in Smart Money Monday last summer, and it’s done well since. The stock has climbed 17% in the past year, while the S&P 500 has slipped 3%.

Even so, Fairfax is still cheap. It trades at less than 0.9X book value per share.