Wanna see what Warren Buffett's worst nightmare looks like? Then take a glance at Fairfax Financial ( FFH), the troubled Canadian investment company that owns a raft of American insurance firms. Toronto-based Fairfax used to be known as the Berkshire Hathaway ( BRK.A) of the North because of its Buffett-aping CEO and its enviable record of earning strong returns by buying cheap companies. After a recent series of stumbles, though, it's clear that chief exec Prem Watsa has fallen well short of the Sage of Omaha. Now, has Fairfax fallen into a deep hole it can't climb out of? That is the question hanging over the publicity-shy, Indian-born Watsa as he leads the company into what is shaping up as its toughest year yet.