Bruce Berkowitz

Bruce Berkowitz

Last Update: 2014-12-18
Related: Fairholme Fund
Fairholme Focused Income Fund

Number of Stocks: 24
Number of New Stocks: 3

Total Value: $7,263 Mil
Q/Q Turnover: 1%

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 (%)
201335.5431.554.0
201235.8115.420.4
2011-32.422.08-34.5
3-Year Cumulative24.4 (7.5%/year)55 (15.7%/year)-30.6 (-8.2%/year)
201025.4715.0610.4
200939.0126.4612.5
5-Year Cumulative117 (16.8%/year)125.5 (17.7%/year)-8.5 (-0.9%/year)
2008-29.7-377.3
200712.355.616.7
200616.7115.790.9
200513.744.918.8
200424.931212.9
10-Year Cumulative184.2 (11%/year)104.1 (7.4%/year)80.1 (3.6%/year)
200323.9628.7-4.7
2002-1.58-22.120.5
20016.18-11.918.1
200046.54-9.155.6

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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Time to Choose the Investment Guru of the Year Bruce Berkowitz,David Dreman - Time To Choose The Investment Guru Of The Year
We’re nearing the end of the year, and that means one thing here at GuruFocus. It’s time again for GuruFocus’ readers to choose the Investment Guru of the Year. More...

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Fairholme's Bruce Berkowitz and His Top 3 Holdings Bruce Berkowitz - Fairholme's Bruce Berkowitz And His Top 3 Holdings
Popular value investor and guru Bruce Berkowitz (Trades, Portfolio) had a relatively busy quarter, adding three new stocks to his Fairholme Capital Management. The guru founded his Fairholme fund in 1997, and in 2009 he was named the Domestic-Stock Fund Manager of the Year and Domestic-Stock Fund Manager of the Decade by Morningstar. Berkowitz has had numerous successes over the past few years as well as his fair share of misses, and this past quarter was exemplified his expertise once again. More...

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Bruce Berkowitz Buys 3 New Stocks in Q3 Bruce Berkowitz - Bruce Berkowitz Buys 3 New Stocks In Q3
Bruce Berkowitz (Trades, Portfolio)’s Fairholme Fund (Trades, Portfolio) (FAIRX) gained 8.72% in the first half of 2014, compared to 7.14% for the S&P. He has beat the index 499.01% versus 76.43% since inception in 1999. More...

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Berkowitz’s Fairholme Fund Adds Stake In Struggling Sears Canada Bruce Berkowitz,Fairholme Fund - Berkowitz’s Fairholme Fund Adds Stake In Struggling Sears Canada
Fairholme Fund (Trades, Portfolio), which renowned investor Bruce Berkowitz (Trades, Portfolio) manages, has accumulated a stake in Sears Canada (SRSC) from the partial spin-off of Sears Holdings  (SHLD). Sears Holdings continues to off-load valuable non-core assets through spin-offs and asset sales. More...

SEARS CANADA, SRSC, SHLD, BERKOWITZ


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A Box Of Sweet Apples On Sale
It was March 2013. The U.S. stock market was coming back strong from the great crisis, and the big bargains were disappearing as the market growth, but there was a big company that was definitely out of market favor and severely judged by investors, analysts and traders. More...

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Bruce Berkowitz Discusses Managing Risk and Reward Bruce Berkowitz - Bruce Berkowitz Discusses Managing Risk And Reward
Bruce Berkowitz (Trades, Portfolio) of Fairholmes Capital discusses managing risk and reward in a new video interview with institutional investors.. More...

BRUCE BERKOWITZ


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Investments Objective And Investment Checklist (Where I Want To Go And How I Am Trying To Get There)
This is the first time I have written an article for gurufocus so I think it is  important to say who I am, what I want to achive by investing and how I try to realize my objective. More...

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Rating: 4.9/5 (7 votes)

Smart Money Trickling Into Transocean for Deep Value in Underwater Oil Driller Bruce Berkowitz,Jean-Marie Eveillard,David Dreman, - Smart Money Trickling Into Transocean For Deep Value In Underwater Oil Driller
The outlook on Transocean (RIG) is very grim as oil sells at four-year lows – near $80 a barrel. Transocean’s stock price is off 82% from its 2007 apex above $170 a share. But shares may already reflect the negative prospects for the oil industry. Exceptional value is born from new lows and bleak prospects – not when everyone sees improvements on the horizon. More...

OIL PRICES, ENERGY, OIL AND GAS, CONTRARIAN INVESTING, BRUCE BERKOWITZ, CARL ICAHN, DAVID DREMAN, JEAN-MARIE EVEILLARD


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How Many Sears Stores Are Closing? Bruce Berkowitz,Chuck Royce - How Many Sears Stores Are Closing?
What does the future hold for Sears (SHLD)? Whatever it is, it doesn’t look very promising, and would-be investors might be wise to wait and see. More...

Sears, Kmart, Retail


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Analyzing Altria´s Drivers and its Impressive Return on Equity
In this article, let´s see one of the most important financial ratios applying to stockholders, the best measure of performance for a firm's management: the Return on Equity (ROE), and we are going to analyze it in the case of Altria Group Inc. (MO), a $93.34 billion market cap company, which is the largest U.S. cigarette producer with roughly 50% share. More...

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Sears Holdings Corporation Provides Update on actions to generate liquidity, fund its transformation and evolve its capital structure
HOFFMAN ESTATES, Ill., Oct. 2, 2014 /PRNewswire/ -- Sears Holdings Corporation ("Holdings," or the "Company") (SHLD) today announced that the Company expects to generate up to U.S.$380 million in proceeds from its interest in Sears Canada Inc. ("Sears Canada") by earlyNovember 2014, assuming the completion of its previously announced rights offering of Sears Canada shares to the Company's stockholders and the exercise of all such rights. Of this amount, the Company expects to receive at least $168 million in mid-to-late October from the exercise of the rights distributed to them by ESL Partners, L.P. and Edward S. Lampert, Chairman and Chief Executive Officer of Holdings and Chairman and Chief Executive Officer of ESL Investments, Inc., which collectively with their affiliates own 48.5% of Holdings' outstanding common stock. More...

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Bruce Berkowitz on Wealth Track Bruce Berkowitz - Bruce Berkowitz On Wealth Track
A rare interview with Bruce Berkowitz (Trades, Portfolio) of The Fairholme Fund (Trades, Portfolio). Launched at the height of the tech bubble in late 1999, The Fairholme Fund (Trades, Portfolio) has been the top performer in Morningstar’s Large Value category since inception, delivering 13% annualized returns and beating its nearest competitor by a margin of 2.4% points a year. Berkowitz believes in “ignoring the crowd”. He’ll explain why nearly 80% of his portfolio is in four financial stocks shunned by most investors. More...

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The Ultimate Concentrated Value Investor - Bruce Berkowitz
Since inception in 1999 the Fairholme Fund (Trades, Portfolio) managed by Bruce Berkowitz (Trades, Portfolio) is the single top performing mutual fund. More...

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Bruce Berkowitz’s Fairholme Buys 7 New Stocks Bruce Berkowitz - Bruce Berkowitz’s Fairholme Buys 7 New Stocks
Bruce Berkowitz (Trades, Portfolio) led returns among gurus in the first quarter of the year with outsized holdings of enormous national home mortgage entities that almost fell during the financial crisis, Fannie Mae (FNMA) and Freddie Mac (EMCC). More...

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Fannie, Freddie Western Ruling Immaterial Bruce Berkowitz - Fannie, Freddie Western Ruling Immaterial
Currently the government is being sued by multiple hedge funds and Bruce Berkowitz (Trades, Portfolio)'s Fairholmes Funds over Fannie and Freddie. These investment firms are suing the government because the government acted illegally by getting Freddie and Fanni to pay the government nearly all of the firms' massive profits in the form of dividends. The investment funds alleged that both the Treasury and the FHFA violated the Administrative Procedure Act by exceeding their authority under the Bush-era Housing and Economic Recovery Act. They claim this voilation occurred in August 2012, when the Treasury and FHFA amended the peferred stock purchase agreement to implement a full income sweep under which Fannie and Freddie's profits will go to the Treasury. The plan in these lawsuits is to get a judge to rule that amending the preferred More...

FANNIE,FREDDIE,HOUSING,REINSURANCE,HEDGE FUNDS,VALUE INVESTING,MUTUAL FUNDS,LAWSUIT,


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Absolute Valuation Model Indicates that Altria Is a Good Buy Bruce Berkowitz,James Barrow - Absolute Valuation Model Indicates That Altria Is A Good Buy
In this article, let´s consider Altria Group Inc. (MO), an $84.83 billion market cap, which has a trailing P/E ratio that indicates that the stock is relatively overvalued (PE 19.7x vs Industry Median 19.5x). More...

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Bruce Berkowitz Comments on Sears Holdings Corp
Sears (SHLD) remains the Fund’s least successful investment, yet has the highest potential based on our estimates of tangible values. More...

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Bruce Berkowitz Comments on Bank of America
Bank of America (BAC) common stock is the Fund’s third largest position. Acquiring and then fixing Countrywide Financial has cost the bank tens of billions. Finishing the task will, in our view, allow much more to drop to the bank’s bottom line. More...

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Bruce Berkowitz Comments on Fannie Mae and Freddie Mac
Fannie Mae (FNMA) and Freddie Mac (FMCC) preferred stocks and common shares constitute approximately 15% of the Fund’s portfolio. We believe that the two companies may be the most important financial institutions in the United States – perhaps the world – and directly support housing affordability and accessibility, including the uniquely American 30-year fixed-rate mortgage. They are a major reason why our country did not enter a second Great Depression, and are proving to be the most successful taxpayer investments of the Great Recession. More...

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User Comments

Mocheng
ReplyMocheng - 2 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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