We recently compiled a list of Billionaire Prem Watsa's 10 Stock Picks With Highest Potential. In this article, we are going to take a look at where Colliers International Group Inc. (NASDAQ:CIGI) stands against Prem Watsa's other stock picks.

Momentum and technology stocks have dominated the markets over the past decade. They have been the catalyst behind valuations in the overall equity markets getting out of hand. Not anymore. A full-blown correction is in play, going by major US indices pulling back by up to 10% from all-time highs. The pullback has mostly been felt in the tech space, where most counters have been trading at premium valuations for years.

The correction being experienced comes on the backdrop of billionaire investor Prem Watsa insisting that value investing has been overshadowed over the past decade. The renowned investor and CEO of Fairfax Financial Holdings insists on patience and discipline in value investing as one of the ways of generating long-term returns.

READ ALSO: 15 Recent Activist Investor Campaigns and Billionaire Rob Citrone’s Top 10 Stock Picks.

“In the last 10 years since that 2008, 2009 crash—call it the great financial crash—value investing basically, I think, one, maybe two years we’ve had that value-oriented stocks have done well compared to momentum.”

The dominance of technology stocks led by the “magnificent seven” stocks has tested the resolve of value-focused investors in recent years. The stocks have posted double-digit percentage gains over the past two years, resulting in premium valuations at the back of the artificial intelligence-driven rally. However, the stocks have come under pressure in 2025 amid a string of headwinds, among them the growing concerns about the impact of the US trade war.

Growing concerns that the US Federal Reserve will not cut interest rates as inflation ticks high on the pitfalls of the US trade war and tariffs have also sent tech stocks tumbling the most. With the stocks pulling back, billionaire Watsa insists that now may be the best time to look for value investments, trading at highly discounted valuations with significant upside potential.

For Watsa, the Canadian “Warren Buffett”, focus should always be on value investing, focusing on strong businesses at fair prices.

“We just think value investing—where you’re buying something, a dollar for 50 cents, is the expression—good companies run by good, honest, hardworking presidents, CEOs. And you’re buying them at fair prices. We think over time that should work.”

Watsa has built a reputation for identifying and focusing on undervalued opportunities. He has also cemented his place as one of the most respected figures in global finance with a reputation for navigating crises, such as the one in play amid the US trade war. Fairfax Financial Holdings, the holding company that Watsa founded in 1985, has carved a name over its disciplined underwriting and value-oriented investment strategy. It also focuses on delivering above-average returns over time. With a portfolio value of about $1.5 billion, the holding company portfolio is highly diversified across basic materials technology financials and consumer cyclical sectors.

Our Methodology

We combed Fairfax Financial Holdings Limited SEC Q4 2024 13F filings to identify Billionaire Prem Watsa’s 10 stock picks with highest potential. We then settled on stocks with more than 30% upside potential based on analysts ratings and analyzed why the stocks stand out as solid value investments well poised to generate significant value. Finally, we ranked the stocks in ascending order based on the value of the stock’s upside potential after highlighting hedge fund sentiment on the stocks.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

An experienced property manager overseeing tenants in an apartment complex.

Colliers International Group Inc. (NASDAQ:CIGI)

Number of Hedge Fund Holders: 19

Fairfax Financial Holdings’ Stake: $3.29 Million

Analysts’ Upside Potential as of April 21: 44.03%

Colliers International Group Inc. (NASDAQ:CIGI) provides commercial real estate to corporate and institutional clients. It offers capital markets services for property sales, debt finance, mortgage investment banking, and landlord and tenant representation services. On April 10, JPMorgan lowered its stock price target to $142 from $167 but kept its Neutral stance. The price cut comes amid growing concerns of uncertainty in the real estate sector due to tariffs and recession risks.

Colliers International Group Inc. (NASDAQ:CIGI) has moved to strengthen its position as Canada’s largest commercial real estate service sector with the acquisition of Triovest. With the acquisition, it gained access to a leading commercial real estate services platform managing more than 95 million square feet of commercial real estate. In addition, the company oversees more than $15 billion in projects under development.

The acquisition comes from Colliers International Group Inc. (NASDAQ:CIGI) delivering strong Q4 2024 results that underscored underlying growth. Revenue in the quarter was up 22% year-over-year to $1.5 billion as adjusted EBITDA increased 14% to $225 million. The real estate services company is experiencing robust growth across its business segments, with the engineering division seeing a 61% increase driven by acquisitions.

Overall CIGI ranks 6th on our list of Prem Watsa's stock picks with highest potential. While we acknowledge the potential of CIGI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CIGI but that trades at less than 5 times its earnings check out our report about this cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

 

Disclosure: None. This article is originally published at Insider Monkey.