Q: Hi, Pat. I recently read that Fairfax has increased its holdings in Torstar up to 40% of non-voting shares. There’s also the suggestion that Fairfax’s plan may be to take the company private. Can you enlighten me on what “taking a company private” entails? Are shareholders bought out? And if they are, at what price and how is the price determined? I appreciate your advice and I look forward to your response.

A: Fairfax Financial (symbol FFH on Toronto), now holds 40.6% of the class B non-voting shares of Torstar Corp., $1.56, symbol TS.B on Toronto (Shares outstanding: 80.8 million; Market cap: $126.9 million; www.torstar.com).

Torstar insiders own 100% of the class A voting stock. Those insiders are… Read More

Investors Toolkit: The rewards and risks of borrowing to invest

Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific investment advice on a wide range of topics. Each Investor Toolkit update gives you a fundamental tip and… Read More

Borrowing to invest—the pros and cons

While interest rates remain near historic lows, borrowing money to invest continues to look like an attractive investment strategy.

We believe that this strategy works best if you borrow to buy well-established, dividend-paying stocks. For instance, you could select from the companies we recommend in the… Read More