This TSX Giant Has Soared — and Still Looks Set for Long-Term Growth

Buying a stock after it’s already surged can feel risky — and often is. Many stocks that skyrocket quickly end up falling just as fast, especially if their valuations are inflated and their growth stories start to fade. That’s why it’s critical to look beyond hype and focus on the fundamentals. One standout on the TSX that continues to defy expectations is Fairfax Financial Holdings (TSX:FFH).

A Rare Combination: Momentum and Value

Fairfax Financial, an insurance and investment conglomerate led by CEO Prem Watsa, has delivered a remarkable 500% return over the past five years. Yet despite this massive rally, the stock remains attractively valued, trading at just 8.8 times trailing earnings — a multiple you’d typically expect from a slow-growth or underperforming company, not one that’s consistently outperforming.

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This unusual combination of strong momentum and low valuation is what makes Fairfax particularly compelling. In contrast to many high-flying AI or tech stocks that rely heavily on hype and stretched valuations, Fairfax continues to post strong fundamentals that beat analyst expectations — all while staying relatively under the radar.

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Why the Market May Be Mispricing Fairfax

Despite a market cap of $54 billion and improving results each quarter, Fairfax still doesn’t receive the recognition it arguably deserves. Its diversified portfolio, disciplined investment approach, and strong insurance operations make it a stable long-term bet. The leadership of Prem Watsa — often dubbed the “Canadian Warren Buffett” — adds another layer of confidence.

Some may wonder how a stock that’s rallied so hard can still be a buy. But in Fairfax’s case, it’s not a speculative bet. The low P/E ratio signals that the market hasn’t fully priced in the company’s earnings potential, leaving room for further upside.

Bottom Line

Fairfax Financial isn’t your typical post-rally stock. It’s not overpriced, overhyped, or nearing its peak — it’s still misunderstood. For long-term investors looking to adopt a “buy high and sell higher” strategy without overpaying for growth, Fairfax offers a rare opportunity. With strong leadership, solid fundamentals, and a surprisingly low valuation, it could keep climbing — and stay there for years to come.