Fairfax Financial Quietly Doubles RIM Stake to 10%
There’s contrarian investing and then there’s catching a falling knife… that’s on fire… that’s laced with anthrax. Despite the evidence against the move, Fairfax Financial has doubled its stake in Blackberry maker RIM to nearly 10 percent (51.9 million shares) over the last half year. Firm leader Prem Watsa, aka Canada’s Warren Buffet, is on RIM’s board and believes the company’s shares are nearing bottom. Betting on current management turning things around may be a less viable option than making a takeover bid and liquidating or repurposing its assets. Given the rate of RIM’s decline, it might not be long before we know how this story ends. [Source AllThingsD]
