To capitalize on its deep discount to NAV, Exor employed a sophisticated reverse Dutch auction for share buybacks. This allowed the company to repurchase €1 billion in shares at the lowest prices offered by shareholders, maximizing value accretion.

Fairfax employs a clever M&A strategy called the "cannibal buy-up." When an asset is too large to acquire outright, they partner with another firm. Later, when financially stronger, they use their capital to buy out the partner's stake, allowing them to gain 100% control of a valuable asset over time.

Historically conservative UK firm Bellway is adopting a more shareholder-friendly capital allocation strategy. They've initiated new buyback programs and plan to increase leverage from near-zero to 15-20% net debt to total capital, signaling a tangible shift towards improving returns.

To maintain pricing discipline, Fairfax has a strict M&A rule: it never participates in auctions or bidding wars. Once an offer is made, it's final. This strategy prevents them from overpaying and ensures they only acquire companies at prices that offer attractive future returns.

Companies termed "share cannibals" aggressively repurchase their own shares, especially when undervalued. This capital allocation strategy is often superior to dividends because it transfers value from sellers to long-term shareholders and acts as a high-return, low-risk investment in the company's own business.

Profitable, self-funded public companies that consistently use surplus cash for share repurchases are effectively executing a slow-motion management buyout. This process systematically increases the ownership percentage for the remaining long-term shareholders who, alongside management, will eventually "own the whole company."

After enduring a brutal multi-year short-seller campaign, Fairfax concluded that a fortress balance sheet is the ultimate defense. They now hold billions in cash and untapped credit lines, not just for operational safety, but specifically to make the company an unattractive target for future hedge fund attacks.

The book "The Fairfax Way" reveals the company's early success wasn't merely from acquiring insurers at low valuations. The critical, often overlooked element was the immense time, money, and work required to revamp and stabilize these acquired operations to an acceptable level, a key lesson for value investors.

A tender offer, where a company buys a large block of its stock in a set price range, signals higher conviction than a typical buyback program. It forces management to put a stake in the ground, indicating they believe the shares are significantly undervalued at a specific price.