Bruce Berkowitz is the founder of Fairholme Capital Management and the portfolio manager of Fairholme Funds. In 2010, Berkowitz was awarded “Domestic-Stock Fund Manager of the Decade” by Morningstar.
From 2000 to 2010, the Fairholme Fund (FAIRX) outperformed the S&P 500 by a wide margin — but in 2011 – disappointing investments in Sears Holdings (SHLD), St. Joe Corporation (JOE) and American International Group (AIG) have weighed on the fund’s performance.
Value Investing
Berkowitz is considered to be one of the preeminent value-investors of today. You will also get to read his contribution in the 2008 re-release of Benjamin Graham and David Dodd’s Security Analysis.
Lately he has received some criticism for his praise of U.S. government bailouts of insolvent financial institutions.
Business Section: Investing Ideas
Although not exactly a household name and apparently only most recently became Wikipedia-worthy, he is very well respected in the investment community. Berkowitz states the stellar performance was achieved by ”Ignoring the crowd and going towards stressed areas that many people are running from… We make our judgments based on the cash that securities generate.”
Below are his Top 10 Holdings of his fund Faurholme (FAIRX) ranked by percentage of portfolio:
Use the Turbo Chart to Compare the Performance of the First Two Companies in the List to the S&P 500:
1. American International Group, Inc. (AIG, Earnings, Analysts, Financials): The company operates property and casualty insurance networks worldwide and conducts activities in the U.S. life insurance and retirement services industry. Market cap at $54.89B, most recent closing price at $31.84.
2. Sears Holdings Corporation (SHLD, Earnings, Analysts, Financials): Operates as a retailer in the United States and Canada. Market cap at $5.81B, most recent closing price at $54.54.
3. Bank of America Corporation (BAC, Earnings, Analysts, Financials): Provides banking and financial services to individuals, small- and middle-market businesses, corporations, and governments primarily in the United States and internationally. Market cap at $81.3B, most recent closing price at $7.53.
4. CIT Group Inc. (CIT, Earnings, Analysts, Financials): Operates as the holding company for CIT bank that provides commercial financing, leasing products, and other services to small and middle market businesses. Market cap at $7 B, most recent closing price at $34.96.
5. Leucadia National Corp. (LUK, Earnings, Analysts, Financials): Engages in manufacturing, telecommunications, land based contract oil and gas drilling, property management and services, gaming entertainment, real estate activities, medical product development, and winery operations in the United States. Market cap at $5.38B, most recent closing price at $21.93.
6. The St. Joe Company (JOE, Earnings, Analysts, Financials): Operates as a real estate development company in Florida. Market cap at $1.56B, most recent closing price at $16.95.
7. MBIA Inc. (MBI, Earnings, Analysts, Financials): Provides financial guarantee insurance and related reinsurance, advisory, and portfolio services, as well as investment management services to public finance and structured finance markets. Market cap at $2.03B, most recent closing price at $10.63.
8. Berkshire Hathaway Inc. (BRK/A, Earnings, Analysts, Financials): Berkshire Hathaway Inc. is a holding company owning subsidiaries in a variety of business sectors. Market cap at $209 B , most recent closing price at $127, 389.
9. Jefferies Group, Inc. (JEF, Earnings, Analysts, Financials): Operates as a securities and investment banking company in the Americas, Europe, and Asia. Market cap at $2.62B, most recent closing price at $12.88.
10. Orchard Supply Hardware Stores Corporation (OSH, Earnings, Analysts, Financials): Market cap at $117.86 M, most recent closing price at $19.60.
Written by Sabina Bhatia
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Analyze These Ideas: Getting Started
- Read descriptions for all companies mentioned
- Access a performance overview for all stocks in the list
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Dig Deeper: Access Company Snapshots, Charts, Filings
- American International Group, Inc. (AIG, Chart, Download SEC Filings)
- Sears Holdings Corporation (SHLD, Chart, Download SEC Filings)
- Bank of America Corporation (BAC, Chart, Download SEC Filings)
- CIT Group Inc. (CIT, Chart, Download SEC Filings)
- Leucadia National Corp. (LUK, Chart, Download SEC Filings)
- The St. Joe Company (JOE, Chart, Download SEC Filings)
- MBIA Inc. (MBI, Chart, Download SEC Filings)
- Berkshire Hathaway Inc. (BRK/B, Chart, Download SEC Filings)
- Jefferies Group, Inc. (JEF, Chart, Download SEC Filings)
- Orchard Supply Hardware Stores Corporation (OSH, Chart, Download SEC Filings)
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