Warren Buffett of Canada started with $8: Who is Prem Watsa? Fairfax chief behind ₹52,877-crore IDBI deal involving LIC

Prem Watsa is a Hyderabad-born billionaire who built Fairfax Financial Holdings into a global business. Known as the “Warren Buffett of Canada”, he remains its chairman and chief executive. His company is now linked to a major ownership change at IDBI Bank.

The Union Cabinet approved Fairfax’s proposed purchase of a 60.72% stake for ₹52,877 crore. The transaction includes shares held by the government and Life Insurance Corporation of India. Mint earlier reported that the government would sell 30.48% while LIC would sell 30.24%.

The government would retain 15%, and LIC would retain 19% after the proposed transaction. Regulatory clearances are still required.

From Hyderabad to IIT Madras

Born in 1950 near Hyderabad, Watsa was the third of four children. His father taught English and mathematics before becoming a school principal. His family had limited money but placed great importance on education, honesty and hard work.

Watsa was strong in mathematics and chemistry and chose chemical engineering on his father’s advice. The IIT Madras alumnus attended the institute between 1966 and 1971. However, he later decided that business interested him more than engineering.

During college, he managed sports teams and formed friendships that lasted beyond graduation. He also met Nalini Loganadhan during his final year. They married a few years later.

Canada with just $8

Watsa initially failed to secure admission to the Indian Institute of Management. He worked, studied harder and succeeded on his second attempt. However, he eventually chose Canada, where his older brother had settled.

He left India with only $8 and stayed with his brother’s family, according to Horatio Alger. He funded his MBA by selling air conditioners and furnaces from door to door. He studied at the University of Western Ontario’s business school.

Finding work after graduation was difficult. In 1974, Confederation Life Insurance hired him as an investment analyst. His manager, John Watson, became his mentor and introduced him to Benjamin Graham’s investment approach.

Building Fairfax through insurance

After nine years at Confederation Life, Watsa helped establish Hamblin Watsa Investment Counsel. In 1985, he organised investors to take control of a small Canadian trucking insurer. That business became the foundation of Fairfax Financial Holdings.

Watsa built his business by acquiring insurance companies, drawing inspiration from Warren Buffett. Fairfax expanded into property insurance, casualty insurance and reinsurance across international markets. Its investments have also included stakes in BlackBerry and GE.

His approach also stressed employees, customers and shareholders. Watsa said Fairfax committed part of its profits to communities supporting its businesses.

Wealth, family and values

Forbes estimated Watsa’s wealth at $2.5 billion, as of 14 October 2026. Its annual wealth history recorded $2.7 billion for 2026, compared with $2.2 billion in 2025. The figure stood at $1.7 billion in 2024 and $1 billion in 2015.

Watsa, 76, is a Canadian citizen living in Toronto. He is married and has three children. His wealth comes mainly from insurance and investments.

He has described faith, family and business as central to his life. He also supports education and charitable causes, alongside his wife, through time and donations.