A Canadian billionaire is quietly buying massive amounts of Under Armour stock — and almost no one is talking about it. Prem Watsa, often called the "Warren Buffett of Canada," has invested over $100 million in the struggling sportswear brand since December 2025.
The Story Behind the Buys
In January 2026, Watsa bought 13.2 million Under Armour shares through his investment firm Fairfax Financial for $67 million — at an average price of $5.12 per share. In May, he added another $5.9 million, buying 1.2 million more shares at around $5 per share.
What makes this remarkable: The stock is trading 55% below its all-time high. Under Armour is struggling with declining sales, store closures, and fierce competition from Nike and Adidas. Analysts have cut price targets from $8 to $5.50 — yet a billionaire keeps buying.
Watsa isn't a random buyer. He's made a fortune with this exact strategy before: buy stocks when they're beaten down, wait, and profit from the recovery. With Under Armour, he clearly sees the same opportunity — a company that's too cheap relative to its potential.
Why This Matters
When a billionaire with 40 years of experience puts over $100 million into a stock while everyone else is selling, it's a signal. Watsa believes Under Armour will grow again in the coming years.
For individual investors, this means: Either Watsa has insider-level insight into a turnaround story — or he's making an expensive mistake. Historically, he's been right more often than wrong. His Fairfax holding has delivered an average return of over 20% per year since the 1980s.
The stock currently trades around $5.90 (as of June 2026). If Watsa is right and Under Armour rebounds to $10-12 in 2-3 years, he'll double his money. If not, he'll lose millions.
How Pros Are Reacting
Large investors like Watsa don't buy for short-term gains. They analyze fundamentals: brand strength, product quality, cost structure, management decisions. Watsa clearly believes Under Armour is undervalued — that the market has written off the brand even though it still has life in it.
He's buying in tranches: January, May, and possibly more to come. This is called dollar-cost averaging — spreading purchases over time to avoid investing everything at the wrong moment.
First Steps for Beginners
If you're a beginner learning from insider buys like this, remember: Pros like Watsa don't buy at the peak when everyone's euphoric. They buy when sentiment is worst — when the stock is at rock bottom.
That doesn't mean you should buy every falling stock. But when someone with billions in experience is aggressively buying while everyone else sells, it's worth a closer look. What does he see that you don't?
Under Armour is an example of how patience and long-term thinking work. Watsa isn't buying for today or tomorrow — he's buying for the next 3-5 years. Those who panic-sell today might regret it in 3 years.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results.