Bruce Berkowitz

Bruce Berkowitz

Last Update: 03-19-2015
Related: Fairholme Fund
Fairholme Focused Income Fund

Number of Stocks: 18
Number of New Stocks: 3

Total Value: $7,296 Mil
Q/Q Turnover: 4%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Bruce Berkowitz' s Profile & Performance

Profile

Bruce Berkowitz is the founder and the Managing Member of the Fairholme Fund. Prior to forming Fairholme Capital Management, Mr. Berkowitz was a Managing Director of Smith Barney, Inc. from December of 1993 to October of 1997.

Web Page:http://www.fairholmefunds.com/

Investing Philosophy

Bruce Berkowitz concentrates his investments in a relatively small number of companies. He thinks that the more diversified the portfolio, the more likely the performance will be average. He likes companies with great managers, and deeply undervalued stocks. Benjamin Graham's "The Intelligent Investor" serves as the inspiration for Berkowitz?investment strategy. He focuses investments on companies that have exceptional management, that generate free cash, and that are cheaply priced. Berkowitz will also invest in mediocre companies that are trading at a significant discount to intrinsic value where there exists a catalyst ?an event that makes it likely the gap between market price and intrinsic value will narrow in a reasonable amount of time.

Historical Allocation of Stock, Bonds, Cash

Total Holding History

Performance of Fairholme Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
2014-2.7213.69-16.4
201335.5432.393.2
201235.811619.8
3-Year Cumulative79.1 (21.4%/year)74.6 (20.4%/year)4.5 (1%/year)
2011-32.422.11-34.5
201025.4715.0610.4
5-Year Cumulative51.8 (8.7%/year)105.1 (15.5%/year)-53.3 (-6.8%/year)
200939.0126.4612.5
2008-29.7-377.3
200712.355.496.9
200616.7115.790.9
200513.744.918.8
10-Year Cumulative121.3 (8.3%/year)109.4 (7.7%/year)11.9 (0.6%/year)
200424.9310.8814.1
200323.9628.68-4.7
2002-1.58-22.120.5
20016.18-11.8918.1
200046.54-9.155.6
15-Year Cumulative424.8 (11.7%/year)86.4 (4.2%/year)338.4 (7.5%/year)

Top Ranked Articles

Bank of America (BAC) with a compelling entry point for long term investors
Though It Hurts, Bruce Berkowitz Is No Bill Miller
There are a lot of analogies in the media these days to compare Fairholme Fund’s Bruce Berkowitz with Legg Mason Value Trust’s Bill Miller, as Berkowitz’s Fairholme Fund suffered its worst year of performance after years of tremendous outperformance. Many articles are predicting that Bruce Berkowitz is the next Bill Miller. Investors certainly treated Bruce Berkowitz the same way they treated Bill Miller. At the peak of Miller’s fame, after he had beaten the market average S&P 500 by 15 consecutive years, the size of his fund reached $20 billion in 2006. He suffered a 6.66% loss in 2007, while the market advanced in 2007, and a 55% loss in the market crash of 2008. Investors fled out of his fund. As of July 31, 2011, the fund has only $3.3 billion left, about 16% of the assets under management at its peak. Read more...
Chesapeake Energy – Ready to Rise
One of the gurus I pay attention to is Bruce Berkowitz who is the manager of Fairholme Funds and famed for his analysis and sticking to his convictions when he feels the facts are on his side, even if his stocks are down substantially from his purchase price. Given the recent disclosure by GuruFocus that Bruce Berkowitz has re-initiated a position in Chesapeake Energy (CHK) in first quarter 2013 and the oil and gas sector being out of favor, I decided to take a look at Chesapeake Energy (CHK). Read more...
Concentrates his bets, Bruce Berkowitz focuses on Berkshire Hathaway and Canadian National Resources
Bruce Berkowitz, manager of Fairholme Fund, started his fund 8 years ago. Over the past 8 years his fund has appreciated by 17.40% per annum compared to a gain of 1.71% per annum for the S&P 500 Index. With this article we like to review how Bruce Berkowitz achieved this outstanding result. Read more...
Answers from Bruce Berkowitz of Fairholme Fund; Comment on Banks, Insurers and St. Joe
In January we announced that our users can ask questions to Bruce Berkowitz of Fairholme Fund and we received tremendous responses. Now here are the answers back from Mr. Berkowitz in a joint interview with Advisor Perspective. Read more...
» More Bruce Berkowitz Articles

Commentaries and Stories

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Bruce Berkowitz Speaks With The University Of Miami
In 2012 value contrarian investor Bruce Berkowitz (Trades, Portfolio) sat down for a conversation at the University of Miami School of Business Administration. More...

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Rating: 4.7/5 (3 votes)

Bruce Berkowitz: It's a Sears Thing Bruce Berkowitz - Bruce Berkowitz: It's A Sears Thing
Fairholme Capital Management published a teaser of its upcoming presentation on Sears Holdings Corporation (SHLD) earlier today. More...

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Bruce Berkowitz Reduced Stake In One Of The Largest Broadline Retailers In The U.S.
Bruce Berkowitz (Trades, Portfolio) is the founder and the managing member of the Fairholme Fund (Trades, Portfolio). The investor reported decreasing his stake in Sears Holdings Corp (SHLD) on March 16, according to GuruFocus Real Time Picks. More...

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Bruce Berkowitz Reports 3 New Holdings in Fourth Quarter Bruce Berkowitz - Bruce Berkowitz Reports 3 New Holdings In Fourth Quarter
Bruce Berkowitz (Trades, Portfolio) is the founder of Fairholme Fund (Trades, Portfolio)s (FAIRX), a mutual fund company with $6.56 billion in assets under management at Jan. 7. More...

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Bruce Berkowitz's Fairholme Funds Conference Call Q4 2014
Please see the last page of this transcript for important disclaimers and for a list of the Fairholme Fund (Trades, Portfolio)’s top holdings. 1 FAIRHOLME CAPITAL MANAGEMENT, L.L.C. Fairholme Capital Management Public Conference Call. More...

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Manual of Ideas' Interview With Allan Mecham
Allan Mecham of Arlington Value did a interview with the Manuel Of Ideas last year. His fund has racked up a impressive 10-year record of return including a positve return in 2008. He has outperformed the S&P 500 by a dramatic amount and has multipled investors' money by 11 times over since its founding. More...

ALLAN MECHAM,VALUE INVESTOR,YOUNG WARREN BUFFETT,SOUND INVESTING,LONG-TERM,HEDGE FUND,FUND MANAGER,


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Rating: 3.5/5 (2 votes)

Bruce Berkowitz Comments on Leucadia National Corp
Leucadia (LUK) (3.6%) remains the Fund’s longest held position. Our estimate of intrinsic value remains above today’s market price. The company’s historical track record of compounding book value significantly faster than most S&P 500 constituents is partly the result of its willingness to initiate opportunistic investments during market panics, as evidenced by its recent rescue financing of Forex Capital Markets (FXCM) following the surprise Swiss franc surge. More...

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Rating: 3.0/5 (1 vote)

Bruce Berkowitz Comments on St Joe Corp
The St. Joe Company (JOE) (6.5%) continues to make steady progress. Since our involvement in late 2010, the company has: (i) streamlined real estate and forestry operations by 50%; (ii) reduced corporate expenses by 35%; (iii) increased liquidity by 260%; (iv) cut debt as a percentage of assets to 4.6%; and (v) focused on entitling core assets surrounding one of America’s newest airports and the Gulf of Mexico. St. Joe’s sale of 380,000 acres of non-strategic timberland and rural land for $562 million last year was an important milestone in positioning the company for long-term success. The company’s search for a new CEO is well underway. And Port St. Joe was recently issued a permit by the Florida Department of Environmental Protection to allow for the dredging of the port’s navigational channel, which will help reinvigorate this deep-water seaport for bulk and cargo shipments. More...

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Rating: 4.3/5 (4 votes)

Bruce Berkowitz Comments on Sears Holdings Corp
Market participants have often failed to ascribe appropriate intrinsic value to conglomerates, and Sears Holdings Corporation (SHLD) (“SHC”, 7.1%) is no exception. For years, SHC has remained a misunderstood sum-of-parts story. Few have the inclination to examine all of the company’s pieces, which equate to a net asset value that we estimate to be multiples of current market prices. More...

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Bruce Berkowitz Comments on Fannie Mae and Freddie Mac
When we initiated the Fund’s investments in Fannie Mae (FNMA) (4.5%) and Freddie Mac (FMCC) (3.5%), conventional wisdom was that the companies would be liquidated. We disagreed. Our investment was predicated on a simple thesis: there are no substitutes. Fannie and Freddie provide services that are absolutely essential to the American way of life. They help make the popular 30-year fixed-rate mortgage available and affordable. They provide liquidity and stability to the nation’s housing finance system – during good and, especially, in bad times. No one does it better. More...

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Bruce Berkowitz Comments on Bank of America
Bank of America (BAC) (22.3%) has executed its business plan admirably to date. By refocusing on core customer relationships across multiple platforms (i.e., checking, credit card, mortgage, and small business), the company is positioning itself for long-term profitability. Effective cross-fertilization of these services will make parallels with best-in-class Wells Fargo more pronounced, and help Bank of America’s still-depressed market price to at least reach book value, reflecting the higher values of existing business. The company recently surpassed its 2011 cost-cutting goal of $8 billion per annum, ahead of schedule. Litigation expenses – a major weight on the company in recent years– have largely dissipated. Heeding lessons learned from the financial crisis, the company prudently disposed of a profitable (at the time) wholesale mortgage business. Intermediaries might seem like ideal clients, but history shows that they are more adversary than friend. Investors should not be surprised to see Bank of America continue to shrink no-longer-core activities. However, the company’s balance sheet is poised for a growing business More...

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Rating: 4.0/5 (2 votes)

Bruce Berkowitz Comments on American International Group Inc
AIG (AIG) common (41.0%) and warrants (8.1%) remain the Fund’s locomotive. Last year, AIG increased its quarterly dividend by 25% and bought back over $3.4 billion of stock. Efficient capital management allowed the company’s reported book value to grow by about 15% year-over-year to $77.35 per share as of Q3 2014. Going forward, we expect that AIG’s property and casualty business will be the main driver of further increases in value. If management is able to deliver underwriting margins and expense efficiencies consistent with its peer group, then the company’s book value and stock price will meaningfully increase. We shall soon see. More...

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Fairholme Fund's New Additions to the Portfolio Bruce Berkowitz - Fairholme Fund's New Additions To The Portfolio
Bruce Berkowitz (Trades, Portfolio)'s Fairholme Fund (Trades, Portfolio) recently increased its positions in two stocks while also adding a new buy to its portfolio of 27, with a value of $6.41 billion and a quarter-over-quarter turnover rate of 2%. More...

FAIRHOLME FUND, BRUCE BERKOWITZ, VALUE INVESTING


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Bruce Berkowitz Increases His Stakes In Fannie And Freddie
Bruce Berkowitz (Trades, Portfolio) of Fairholme Capital has increased his stakes in Fannie Mae (FNMA) and Freddie Mac (FMCC). With Fannie and Freddie stock prices falling, they now make up a smaller position of value in Fairholmes portfolio compared to mid-2014. Bruce Berkowitz (Trades, Portfolio) is heavly invested in the GSE's and has a law suit against the government over the all of Fannie and Freddie earnings being taken by the government. More...

FAIRHOLME CAPITAL,VALUE INVESTING,LONG-TERM,FANNIE,FREDDIE,HOUSING,BRUCE BERKOWITZ,


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Bruce Berkowitz Increases Position in SHLD Bruce Berkowitz - Bruce Berkowitz Increases Position In SHLD
Fairholme Capital Management's Bruce Berkowitz (Trades, Portfolio) recently added more shares of Sears Holdings Corp (SHLD) to his portfolio of 24 stocks, valued at $7.26 billion. More...

VALUE INVESTING, RETAIL


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Fairholme Fund Invests in Financial Services Stocks Bruce Berkowitz - Fairholme Fund Invests In Financial Services Stocks
More than three-fourths of the holdings in Bruce Berkowitz (Trades, Portfolio)’s Fairholme Fund (Trades, Portfolio) are in financial services, and the firm did little to alter that reputation in the fourth quarter of 2014. More...

Bruce Berkowitz, Fairholme, Fairholme Fund, Financials


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Rating: 5.0/5 (1 vote)

Bruce Berkowitz / Fairholme - 2014 Annual Report and Investor Letter
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What Could Be Expected From Apple’s Q1 Earnings?
The tech giant, Apple (AAPL), is expected to release its first quarter earnings of fiscal year 2015 that ended December 30 on January 27 after the market close and analysts are hoping that the growth momentum would continue for the company as its products have created hype in the technology driven marketplace. The Street analysts are expecting the sales to be over and above the management guidance meted by the company in the last earnings report and in fact the earnings estimates have been revised upwards nine times in the past 30 days reflecting the huge demand for Apple's product line in the market. Let’s quickly take a plunge and find out what could be expected from this first quarter earnings report. More...

APPLE, IPHONE 6, IPHONE 6 PLUS, EARNINGS, Q1, FIRST QUARTER, FISCAL 2015


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A Look at Which Oil Company is the Safest Buy Based on Dividend Data Bruce Berkowitz,David Einhorn,Brian Rogers,Ruane C - A Look At Which Oil Company Is The Safest Buy Based On Dividend Data
Oil has been a hot topic in the news ever since prices began to decline, which has lead investors to paying closer attention to energy stocks. As outlined in a previous article on the energy sector, the recent spike in insider buys in this sector did not go unnoticed. Although looking at trends in insider trades is one way to determine which stocks are potentially good buys, another way is by looking at the dividend data, a feature we offer to premium members. The tab can be found on each stock's page. More...

OIL, ENERGY SECTOR, DIVIDEND DATA


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User Comments

Drcorvo@yahoo.com
ReplyDrcorvo@yahoo.com - 3 days ago
I see that you have recorded a large purchase of AIG by Bruce Berkowitz (Trades, Portfolio) for 2/17/15. Where did you get this information from? I'm trying to confirm it but having difficulty.
PamelaJackson
ReplyPamelaJackson - 4 days ago
That’s a terrific press release. I wonder how you write all these informative stuff. keep it up..
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Fox10
ReplyFox10 - 2 months ago
I would like to see a proof that berkowitz sold out of fannie and freddie (and mind you, way BEFORE the infamous lamberth-ruling). As it stands, it seems that both fairholme and pershing Square chose to not list fannie and freddie in their 13f filings anymore because they are NOTT required to do so under SEC rules. That is a huge difference though, to claiming they sold out! grurufocus may wish to comment/correct its tables?
Mocheng
ReplyMocheng - 6 months ago
On the homepage, it said Bruce added more SHLD, but it's not showing when I clicked to view details, is there anyway to find out how many shares he added?
Gurufocus
ReplyGurufocus - 1 year ago
"where's the fannie and freddie?"

They are in the portfolio of Fairholme Fund:

http://www.gurufocus.com/holdings.php?GuruName=Fairholme+Fund
A632784
ReplyA632784 - 1 year ago
where's the fannie and freddie??????????????????
Gegogego
ReplyGegogego - 1 year ago
Why are Freddie Mac and Fannie Mae not listed in current holdings or recent buys?

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