Recently Prem Watsa, the proclaimed value investor of Canada, released his annual shareholder letter on Fairfax Financial. We always find it interesting to read. An interesting topic covered in the release was his view on the nature of the current market and the concern of a pending crash. No one knows for sure what the future will bring, but his posture is interesting in that it has dampened the short term performance of his common stock investments. His annualized returns for the past 5 years have been a modest negative 2.7% against the backdrop of an S&P 500 that produced 15.5% over the same period. Most of the other businesses have done well and have helped improve the stock price of Fairfax. We have posted the link below if you are interested in viewing the entire picture. To protect capital or not to protect capital? That is the question, at least for Prem.