While some will no doubt chuckle at the perceived tidiness of an over-the-hill investor investing in what many regard as an over-the-hill tech play, it’s clear what Kahn sees in the beleaguered device maker, and that’s value.
Kahn boasts a value investing pedigree that few, if any, can match. He was a teaching assistant to the father of the discipline, Ben Graham, at Columbia Business School. Students who passed through that class include Charles Brandes and Warren Buffett.
Today, Kahn Brothers manages about a billion dollars, and Irving’s son Thomas -a spritely 71- is the firm’s president. Its top holdings include The New York Times and Pfizer.
“Discipline has been a key for Mr. Kahn. He still works five days a week, slacking off only on the occasional Friday. He reads voraciously, including at least two newspapers every day and numerous magazines and books, especially about science. His abiding goal, he told me, is “to know much more about the stock I’m buying than the man who’s selling does.”
Since BlackBerry’s slide from a high July, 2007 high of $241.90 to lows in the six and seven dollar range, several noted value investors have kicked the tires on the stock. But Donald Yacktman and Mario Gabelli have recently sold their entire position in BlackBerry, leaving Charles Brandes, who at last count owned just 23,320 shares, and Joel Greenblatt, with just 28,480 shares, among the Graham disciples left.
Of course, the company’s largest shareholder remains Fairfax Financial chairman Prem Watsa, who owns more than 10% of BlackBerry. At the recent Fairfax AGM, Watsa said he was encouraged by the progress made by new CEO John Chen.
“John, in five months, has done so many changes. We’re very impressed,” he said.
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Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
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