OBJECTIVES:

• We expect to compound our mark-to-market book value per share over the long term by 15% annually by running Fairfax and its subsidiaries for the long term benefit of customers, employees and shareholders - at the expense of short term profits if necessary.
• Our focus is long term growth in book value per share and not quarterly earnings. We plan to grow through internal means as well as through friendly acquisitions.
• We always want to be soundly financed.
• We provide complete disclosure annually to our shareholders.

STRUCTURE:

• Our companies are decentralized and run by the presidents except for performance evaluation, succession planning, acquisitions and financing which are done by or with Fairfax. Cooperation among companies is encouraged to the benefit of Fairfax in total.
• Complete and open communication between Fairfax and subsidiaries is an essential requirement at Fairfax.
• Share ownership and large incentives are encouraged across the Group.
• Fairfax will always be a very small holding company and not an operating company.

VALUES:

• Honesty and integrity are essential in all our relationships and will never be compromised.
• We are results oriented - not political.
• We are team players – no “egos”. A confrontational style is not appropriate. We value loyalty - to Fairfax and our colleagues.
• We are hard working but not at the expense of our families.
• We always look at opportunities but emphasize downside protection and look for ways to minimize loss of capital.
• We are entrepreneurial. We encourage calculated risk taking. It is all right to fail but we should learn from our mistakes.
• We will never bet the company on any project or acquisition.
• We believe in having fun - at work!