B arrick Gold ABX-T announced two strategic transactions Thursday, including the spinoff of some operations into a new publicly traded company to be called African Barrick Gold. Toronto-based Barrick would continue to own 75 per cent of the new company but do an initial public offering of the remaining 25 per cent. African Barrick’s shares would eventually be listed on the London Stock Exchange. Barrick also announced Thursday that it will increase its stake in a Chilean gold and copper mine by purchasing another 25 per cent from Kinross Gold Corp. K-T in a deal valued at $475-million (U.S.). Barrick said it will pay $455-million cash and eliminate a $20-million obligation that Kinross had to Barrick. As a result of the transaction, Barrick’s share of Cerro Casale rises to 75 per cent. The company estimates that its share of Cerro Casale’s production in the first five…

F airfax Financial FFH-T is flexing its new financial muscle with the purchase of Zenith National Insurance ZNT-N , a U.S. insurer that specializes in workers compensation, for more than $1.4-billion (U.S.) in cash. The takeover, one of the few that Canadian financial institutions have made during the crisis, is opportunistic. Fairfax has long been interested in Zenith, and it once held a significant stake in the company, but it sold it in early 2006 because it had to secure its own finances during a period that chief executive Prem Watsa refers to as Fairfax’s “seven lean years.” Now the U.S. recession has caused some pain for Zenith, a New York Stock Exchange-listed company whose business fluctuates along with employment and payrolls, while Fairfax is riding high. Toronto-based Fairfax made more than $2-billion during the financial crisis from…

G erman car and truck maker Daimler AG DAI-N lost €352-million ($482-million) in the fourth quarter amid the global economic slump, contributing to a larger-than-expected loss on the year and sending shares down sharply. The figure announced Thursday compares with a €1.53-billion loss in the fourth quarter of 2008. Both 2008 and 2009 results were weighed down by charges from Chrysler LLC, with which Daimler was once merged, among other items. Revenue for the October-December period fell to €21.3-billion from €23.2-billion in the fourth quarter of 2008. For the full year, the company lost €2.6-billion, compared with a profit of €1.4-billion in 2008. Revenue fell 20 per cent to €79- billion from €98-billion. Unit sales dropped 25 per cent to 1.6 million cars, trucks, vans and buses, from 2.1 million in 2008. The result was significantly worse than expected by…

T his is the fifth of a six-part course on advanced investing that we publish every week. Considering how important it is to long-term investing success, very little is written about the emotional side of investing. That’s a shame, because for most investors, the biggest obstacle they face is the person in the mirror. Who hasn’t sold in a panic when the market plunged, or bought a high-flying stock just in time to watch it plunge in price? The fact is that, when our emotions get the better of us – whether it’s fear or greed – the outcome is seldom positive. Studies have shown, for example, that the vast majority of mutual fund investors make far less than the funds’ actual returns. Why? Because investors tend to buy high and sell low, which, of course, is precisely the opposite of what they should be doing. A…

W al-Mart Stores Inc. WMT-N reported a 22-per-cent increase in its fourth-quarter profit as the world’s largest retailer cut costs and slimmed down its inventories. But a key measure of sales showed its third consecutive quarterly decline, the discounter said Thursday, as it continues to grapple with deflation in groceries and electronics and a tough economy. The company also offered a tepid earnings outlook. Wal-Mart shares fell 82 cents to $53.24 in premarket trading. The sales weakness is happening even as the discounter sees more customers and takes market share away from its rivals with aggressive discounting. Wal-Mart has promised investors that it plans to widen the price gap between itself and rivals as it cut costs and reinvests those savings to lower prices for shoppers, which in turn drives sales. Wal-Mart earned $4.63, or $1.21 per share, in the quarter ended Jan. 31. That…

N exen Inc. NXY-T reports it had a $259-million profit in the fourth quarter, a turnaround from the loss that the oil and gas producer it experienced a year earlier. The Calgary-based company says it made progress last year on all three of its main areas: oil sands, shale gas and conventional exploration and development Nexen’s profit for the three months ended Dec. 31 was 50 cents per common share, while net sales rose to $1.55-billion. In contrast, Nexen had a $181-million loss or 35 cents per share in the fourth quarter of 2008, when it had $1.27-billion of net sales.

C anada’s two largest airports have ranked below average in J.D. Power and Associates’ 2010 ranking of consumer satisfaction with North American air terminals. On a 1,000-point scale, Toronto’s Pearson International Airport received a score of 655 while Vancouver International Airport garnered 669 points. Pearson’s score was below the average of 665 for large airports. Vancouver, which belongs to a grouping of medium-sized airports, had a score that was below the average of 683 for its category. The latest study is based on responses from more than 12,100 passengers between January and December of 2009. Detroit took top honours with 705 points in the 2010 J.D. Power ranking of large airports, while Newark in New Jersey placed at the bottom with 609 points. For medium-sized air terminals, Kansas City had the highest score with 742 points while New York’s LaGuardia came last with 604 points. For Pearson, it marks a drop of 12 points from its score of 667 in…