Have you ever watched a seasoned investor make a move that makes everyone else pause and wonder what they know that you don’t? That’s exactly the feeling sweeping through the markets right now as one of the sharpest minds in finance dramatically increases his position in a company that’s spent years in the doldrums. It’s the kind of bold play that reminds us why value investing still captivates so many of us who follow these things closely.
I’ve been tracking market moves for long enough to know that when someone with a track record like Prem Watsa starts loading up on shares, it’s rarely a random decision. Often called the Canadian Warren Buffett, Watsa has built a reputation for spotting undervalued opportunities when others are running for the exits. And right now, his focus is squarely on Under Armour, the sportswear brand that has struggled mightily but suddenly finds itself in the spotlight thanks to this very public show of confidence.
A Legendary Investor Spots Hidden Value
Prem Watsa didn’t become known as Canada’s answer to the Oracle of Omaha by chasing hot trends. His approach has always leaned toward patience, deep research, and the willingness to go against the crowd when the numbers make sense. Over the years, Fairfax Financial Holdings—the company he leads—has made headlines for big bets that eventually paid off handsomely. So when news broke that Fairfax was rapidly accumulating a substantial stake in Under Armour, seasoned observers took notice immediately.
What’s particularly interesting here is the timing. Under Armour has spent the better part of a decade battling declining sales, fierce competition, and shifting consumer preferences. The stock has been hammered, trading at levels that made many wonder if recovery was even possible. Yet here comes Watsa, quietly but steadily buying millions of shares in the open market. It’s the kind of move that forces you to ask: what does he see that the rest of us might be missing?
The Rapid Build-Up of a Major Position
The buying hasn’t been subtle. Regulatory filings reveal a steady stream of purchases throughout late 2025 and into early 2026. In one particularly eye-catching transaction, millions of shares changed hands in a single day, pushing Fairfax’s ownership to around 22 percent of the company. That makes them the largest shareholder by a considerable margin. We’re talking hundreds of millions of dollars committed at prices that looked distressed to most observers.
But aggressive accumulation is only part of the story. The pace accelerated in January 2026, with additional multi-million-share buys disclosed in quick succession. Each filing seemed to add fuel to the fire, sending the stock price climbing as other investors began to follow the smart money. In my view, this isn’t just opportunistic nibbling—it feels like conviction. When someone with Watsa’s resources and reputation doubles down so decisively, it usually signals they believe the downside is limited while the upside could be substantial.
- Multiple large block purchases in a short timeframe
- Ownership climbing well above 20 percent
- Continued buying even as the stock began to rally
- Position now representing hundreds of millions in market value
These aren’t the actions of a trader looking for a quick flip. This looks like long-term capital being deployed with a clear thesis in mind. Perhaps the most intriguing aspect is how the market initially reacted with skepticism—only to see the shares surge as more details emerged. It’s a classic case of disbelief turning into FOMO.
Under Armour’s Long Road to Redemption
Let’s be honest: Under Armour hasn’t exactly been the darling of Wall Street lately. The company that once disrupted the athletic apparel space with innovative fabrics and bold marketing found itself squeezed between giants like Nike and Adidas on one side and fast-rising challengers on the other. Sales growth stalled, margins compressed, and investor patience wore thin. The stock price reflected that reality, dropping dramatically from its peak years ago.
Yet every turnaround story needs a spark, and recent developments suggest one might be igniting. Management has made several key leadership changes, bringing in fresh perspectives for merchandising and regional operations. There’s also talk of strategic refocusing—perhaps streamlining product lines, strengthening direct-to-consumer channels, or rediscovering what made the brand special in the first place. None of this guarantees success, of course, but it does create the conditions where a patient investor might see potential where others see only problems.
When a company has been written off by the market but still possesses strong brand equity and operational levers to pull, that’s often where the real opportunities hide.
— seasoned market observer
I’ve seen this pattern before in other beaten-down names. The hardest part is usually the waiting—staying invested while sentiment remains negative. But once momentum shifts, the recovery can happen faster than most anticipate. Under Armour appears to be at that inflection point now, and Watsa’s involvement only amplifies the narrative.
What Wall Street Is Saying Now
It didn’t take long for analysts to respond to the changing dynamics. Several firms have quietly raised price targets in recent weeks, acknowledging that fresh capital and renewed focus could drive better results in the coming years. While no one is calling for a return to past highs overnight, the tone has definitely shifted from outright bearish to cautiously optimistic. Neutral ratings remain common, but the direction of revisions is telling.
Some observers point to high short interest as another potential catalyst. When a large percentage of the float is sold short, any positive news can trigger rapid covering. Combine that with a high-profile investor taking a major stake, and you have the ingredients for a classic short squeeze scenario. Whether that fully plays out remains to be seen, but the setup is undeniably intriguing.
- Analyst price targets creeping higher
- Short interest creating potential volatility
- Institutional interest picking up alongside retail curiosity
- Broader market sentiment toward consumer discretionary names improving slightly
Perhaps the most interesting aspect is how quickly perception can change. Just a few months ago, Under Armour was largely ignored. Today, it’s generating headlines and drawing fresh attention—all because one very smart investor decided the risk-reward profile had become too attractive to ignore.
The Bigger Picture for Value Investors
This situation offers a textbook example of contrarian investing in action. When everyone else is fearful, the brave—or at least the well-informed—step in. Watsa’s track record suggests he’s rarely early to the party, preferring to wait until valuations become compelling and catalysts begin to emerge. Under Armour fits that profile: a recognizable brand, a loyal customer base, and now a major shareholder with skin in the game and the resources to influence positive change if needed.
Of course, nothing is guaranteed. Turnarounds can drag on longer than expected, competition remains fierce, and macroeconomic factors could complicate the path forward. But for those who believe in the power of patient capital and strong leadership, this is the kind of setup that gets the blood pumping. In my experience, the best opportunities often look the scariest at first glance.
So where does that leave us? Watching closely, that’s where. The combination of aggressive buying by a respected value investor, signs of internal improvement at the company, and a stock price that still sits well below historical levels creates a compelling case. Whether this becomes the next big win for contrarians or simply another false dawn remains to be seen—but ignoring it entirely feels like missing an important chapter in the ongoing story of value investing.
One thing is clear: when the Canadian Warren Buffett starts panic-buying—or more accurately, opportunistically accumulating—a stock that’s been left for dead, it pays to pay attention. The market rarely moves in straight lines, but moves like this remind us why staying curious and open-minded remains essential for anyone serious about investing.
And honestly, isn’t that part of what makes following these stories so fascinating? The possibility that beneath the surface of a struggling company lies real potential, waiting for the right catalyst to bring it to life. Right now, it seems Prem Watsa believes Under Armour might just be that story. Time will tell if he’s right—but the conviction behind his actions certainly makes you sit up and take notice.
(Note: This article reflects market conditions as of January 2026 and is for informational purposes only. Always conduct your own research before making investment decisions.)
