Prem Watsa, the investor who heads Fairfax Financial Holdings Ltd. and foretold a stop by technology company shares two years ago, has become saying “I said so.”
In his annual letter to shareholders, Watsa said he expects tech stocks from Twitter Inc. to Yelp Inc. to fall even further — as much as 90 percent from their peak within the last two years. And the damage will include closely held startups, said Watsa, Fairfax’s ceo.
“The speculation in private high-tech companies (the most valuable which are known as ‘unicorns’) has additionally ended having a thud,” he said within the letter issued Friday. “A buddy of mine said the new name for these businesses is ‘unicorpse’ as many of them cannot fund their losses internally for more than a few months and today have almost no access to external funding.”
In 2014, Watsa highlighted what he said was overvaluation of technology companies. Previously year, Twitter has dropped 64 percent, Yelp is down 55 percent and LinkedIn Corp. slipped 56 percent. Watsa said he is constantly on the support smartphone maker BlackBerry Ltd. and its CEO, John Chen. Fairfax is the second-largest investor within the Waterloo, Ontario-based company, according to data compiled by Bloomberg.