Friday, January 27, 2012

Warren Buffett of the North Buys Huge Stake in RIM. Research in Motion Appoints Prem Watsa to Board of Directors. More Shareholder Friendly Company.

The CEO of Fairfax Financial, Prem Watsa, has increased his stake in Research in Motion (TSE: RIM) to 5.12%. Often referred to as the Warren Buffett of Canada, he succeeded in making a fortune while others failed during the great financial crisis of 2008-2009. Mr. Watsa has now been named to the board of directors for the BlackBerry maker. 

According to Canada's Globe and Mail:
"Mr. Watsa, Fairfax, and other companies related to them bought 6,499,500 shares of RIM on Wednesday and an additional 7,550,700 on Thursday, according to filings with U.S. securities regulators."

Fairfax Financial spokesperson Paul Rivett is quoted as saying that the company is very excited to be buying RIM below book value. Furthermore, the company is interested in buying more shares as Research in Motion continues a restructuring program. With a new CEO and an increased presence for investors on the board, shareholders should be pleased with recent changes. 

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