Muddy Waters, a reputed short seller published a short sell report on Fairfax Financial Holdings Ltd., the ultimate parent of Fairfax India.
The report may be read here
Fairfax-Financial_FFH_MW_20240208.pdf (3.5 MB)
The substance of the report is that FFH enters into transactions and abuses accounting standards to show paper gains, often while incurring cash losses. Fairfax India has also engaged in similar gimmickry (which I highlighted in my piece in Seeking Alpha and posted above).
Muddy Waters also highlights some Indian transactions.
The report educates creative ways by which how accounting can be manipulated to keep numbers going and very helpful for Security Analysts going beyond what management say and look for numbers.
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