Warren Buffett Of Canada Bets Big On Under Armour: Is UA Stock Really Turning The Corner?

When Prem Watsa makes a move, markets tend to pay attention — not because it's flashy, but because it's usually patient, deliberate and deeply conviction-driven.

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That's why his latest bet on Under Armour Inc (NYSE:UA) is raising eyebrows across Wall Street.

Through Fairfax Financial Holdings, Watsa — often dubbed the "Warren Buffett of Canada" — boosted his Under Armour stake by more than 560%, turning it into nearly 10% of Fairfax's portfolio.

That's not portfolio tinkering. It's a statement.

Read Also: Under Armour Stock Surges After Large Insider Purchase

Why This Isn't A Trade

Watsa isn't known for chasing short-term momentum. His style leans heavily toward buying misunderstood companies when expectations are low and patience is required. A position of this size suggests he sees Under Armour as materially undervalued — and believes the downside is increasingly limited.

In other words, this looks like a turnaround bet, not a bounce play.

What Watsa May Be Seeing

Under Armour has spent the last few years doing the unglamorous work: cutting excess inventory, exiting unprofitable channels and refocusing on performance apparel rather than fashion cycles. Revenue growth hasn't impressed, but cost discipline and balance-sheet cleanup have quietly improved.

For value investors, that's often where opportunity starts — not when headlines turn positive, but when operational risk begins to stabilize.

The Risks Haven't Disappeared

This isn't a clean comeback story yet. Under Armour still faces intense competition from bigger rivals, uneven consumer demand, and margin pressure. A large investor stepping in doesn't guarantee execution follows.

Turnarounds also take time — and the stock can stay volatile along the way.

Why It Matters

Watsa's aggressive accumulation doesn't mean Under Armour's problems are solved. But it does suggest that smart money believes the risk-reward has shifted.

For investors, the question isn't whether UA rallies tomorrow — it's whether this is the phase where long-term recoveries quietly begin.

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