In 1972, when Prem Watsa left India, all he had was $8 in his pocket. He was leaving for Canada and has no wealthy backing and no guarantee of success in a new country. To make ends meet, he took up sales jobs, selling furnaces during Canada’s freezing winters and air conditioners during the summer just to fund his education.Today, more than 50 years later, Watsa, the Hyderabad-born investor is at the centre of one of India’s biggest proposed banking transactions. His company, Fairfax Financial Holdings, has been selected as the strategic buyer for a 60.72% stake in IDBI Bank, in a deal valued at ₹52,878 crore.According to Wikipedia, Watsa, an Indian-Canadian billionaire businessman, was awarded the Padma Shri, India’s fourth-highest civilian honor in January 2020.‘Canada’s Warren Buffett’ because…
Prem_Watsa (Wikimedia)
For those who don’t know, he is often described as ‘Canada’s Warren Buffett’ because of his long-term, value-investing philosophy. His journey from an immigrant student to the head of a global financial services group is a story of patience, calculated risks and an enduring connection with India.According to the Indian government’s Department of Investment and Public Asset Management (DIPAM), the transaction involves the sale of 30.48% held by the Government of India and 30.24% held by the Life Insurance Corporation of India (LIC). The proposed acquisition, however, still has regulatory and other requirements to fulfil.From an engineering graduate to a global investorHis journey began in Hyderabad, where Watsa grew up in a middle-class family. His father was an educator and principal of Hyderabad Public School.He went on to study chemical engineering at the Indian Institute of Technology (IIT) Madras, graduating in 1971. He then moved to Canada to pursue an MBA at the University of Western Ontario’s Ivey Business School, completing the programme in 1974.In Canada, Watsa took up sales work. The experience allows him an understanding of the importance of hard work. His academic background in finance eventually made him build a career in investment management.After completing his MBA, he joined a life insurance firm in 1974, and remained there until 1983.How he built his own finance firm and earned a Padma ShriIn 1984, Watsa established Hamblin Watsa Investment Counsel with partners and a year later, he took control of a small Canadian insurance business associated with the trucking industry.Rather than treating the acquisition as a quick opportunity to make money, he focused on building the business over the long term. His firm eventually became the foundation of Fairfax Financial Holdings, which was renamed in 1987.The name Fairfax itself reflected Watsa’s business philosophy. It was derived from the words ‘fair’ and ‘friendly acquisitions’, based on the principle of treating others as one would like to be treated.Why India remained important to him
Padma Shri (PC: Facebook)
Despite building his professional life in Canada, Watsa maintained a strong interest in the Indian market. His investments in the country have covered several sectors, including insurance, banking, travel, chemicals and infrastructure.Through Fairfax India Holdings Corporation, established in 2014, Watsa pursued a long-term investment strategy focused on Indian businesses. The portfolio has included investments in CSB Bank, IIFL-related businesses, Sanmar Chemicals and Bangalore International Airport.In a 2022 interview with Moneycontrol, Watsa expressed his confidence in India’s economic prospects, saying that India would be an important destination for future investments. His interest was not limited to individual companies; he saw the country’s growing economy and expanding financial services sector as opportunities for long-term capital deployment.A journey that comes full circleWatsa’s story is not just about getting rich suddenly but about how someone who left Hyderabad with limited resources went on to build an international financial institution.His rise involved years of working, learning and experience in insurance business, identifying undervalued opportunities and being willing to hold investments for the long term.In 2020, the Government of India honoured him with the Padma Shri for his contribution to trade and industry. He has also received recognition from his alma mater, IIT Madras, for his achievements.
