Fairfax Financial CEO: BlackBerry Is The 'Only' Phone To Use

Fairfax Financial Holdings CEO Prem Watsa said in a Financial Post interview that BlackBerry Ltd BBRY is the "only" smartphone "you should use for heaven's sake." Fairfax Financial holds more than 9 percent of BlackBerry stock at an average price in 2012 of $17.

The stock recently traded at $9.92, down 1 percent.

Watsa also said that BlackBerry's smartphone was "beautiful."

"This is safer, it's got a 24-hour battery, and a beautiful screen," Watsa said. Fairfax Financial led a bid for BlackBerry back in 2013, bidding $4.7 billion. However, the letter of intent did not have a financing component, and Fairfax was unable to make a deal. At current prices, BlackBerry's market capitalization is $5.3 billion.

Watsa was asked why his firm, known for value-oriented strategies, put money into BlackBerry. He said, "These things go in cycles," adding that "BlackBerry used to be $140 (a share). Every stock analyst loved it. Today it's $10. Few stock analysts like it." Conversely, Watsa pointed to Apple Inc. AAPL as a point in how companies can move in the opposite direction.

"You have to remember that the business flows up and down," he said.

BlackBerry, International Business Machines Corp. IBM and Resolute Forest Products Inc RFP account for 76 percent of Fairfax Financial's U.S. equity exposure, according to a recent regulatory filing.