Your portfolio shouldn’t really feel like a horror film, but loads of Canadians deal with it that manner at 2 a.m. A 2025 Monetary Stress Index from FP Canada discovered 49% of Canadians nonetheless lose sleep over monetary stress. One other current benchmark survey abstract additionally tied cash worries to anxiousness and misplaced sleep. When the noise will get loud, a “sleep-well” inventory is the one that may maintain incomes by means of chaos, not the one which wins the most popular pattern of the week.
FFH
That’s why Fairfax Monetary Holdings (TSX:FFH) stands out proper now. It runs a worldwide property and casualty insurance coverage and reinsurance group, and it invests the float with a long-term mindset. Premiums are available, claims exit, and disciplined underwriting can go away a sturdy stream of revenue. Then the funding portfolio can add one other layer of compounding.
During the last 12 months, Fairfax has stored doing the unsexy work that tends to create actual wealth. It didn’t want a miracle product launch. It wanted pricing self-discipline, danger choice, and persistence. The share value nonetheless moved round, however the mannequin stayed regular. And with an ultra-low beta of simply 0.5, it nonetheless trades with sufficient swings to check anybody who refreshes the quote too typically.
Information stream additionally stayed sensible, which is a pleasant change in a market that loves drama. In December 2025, Fairfax introduced it bought 25,000,000 frequent shares of Orla Mining at about $17.64 per share for proceeds of roughly $441.1 million. That tells you administration will take features when it likes the value. For a sleep-well holding, that sort of behaviour issues.
Earnings assist
The newest quarter gave buyers the numbers that calmed nerves. Within the third quarter of 2025, Fairfax reported web earnings of US$1.2 billion, or US$52.04 per diluted share, up from US$1.04 billion, or US$42.62, a 12 months earlier. It additionally reported e book worth per fundamental share of US$1,203.65 at Sept. 30, 2025, up 15.1% from year-end 2024 after adjusting for a $20.77 dividend paid earlier in 2025. Ebook worth issues right here as a result of long-term returns are inclined to observe it.
Even higher, underwriting didn’t take a again seat. Fairfax reported a consolidated mixed ratio of 92% and an underwriting revenue of US$540.3 million on an undiscounted foundation within the quarter. Meaning it made cash on the insurance coverage enterprise itself, earlier than you even discuss funding features. That’s the inspiration you need if you’re attempting to sleep.
Trying ahead, the enchantment stays easy. It spreads danger throughout many insurance coverage operations, and it might probably reprice insurance policies as claims traits change. Greater curiosity revenue may also assist when yields keep elevated, as a result of it holds a big pool of invested property. None of this makes it invincible. Disaster losses can spike, inflation can elevate declare prices, and markets can swing arduous. Even so, buying and selling at an inexpensive 8.4 instances earnings and a strong 0.9% dividend yield, it’s a powerful, sleep properly inventory.
Backside line
So, is Fairfax the perfect sleep-well Canadian inventory on the TSX proper now? It might be if you need a enterprise that earns from underwriting self-discipline and invests with persistence, and when you can maintain by means of occasional drawdowns with out panicking. It might be the fallacious alternative if disaster headlines make you need to hit promote. For everybody else, the pitch is refreshingly plain: let it do the boring work, and let your nights get quiet once more.