Fairfax buys some RIM

Article Excerpt

FAIRFAX FINANCIAL HOLDINGS $417.01 (Toronto symbol FFH: TSINetwork Rating: Average) (416-367-2612; www.fairfax.ca; Shares outstanding: 19.9 million; Market cap: $8.3 billion; Dividend yield: 2.4%) now owns 5.12% of Research in Motion, symbol RIM on Toronto. RIM is a recommendation of our Successful Investor newsletter. RIM has appointed Thorsten Heins as its new chief executive officer and a director of the company. Previously, he was RIM’s chief operating officer. The company’s founders and former co-CEOs, Jim Balsillie and Mike Lazaridis, will remain directors. As well, the company has appointed Prem Watsa as a director. Mr. Watsa is the chairman and founder of Fairfax Financial Holdings. Mr. Watsa should help RIM attract more accomplished, high-profile directors. To top it off, Mr. Watsa has a reputation as a canny investor. His investment draws attention to RIM’s value. We think this will increase the value of Fairfax’s stake in the company. Fairfax Financial is now a buy. buy…