Bruce Berkowitz

Bruce Berkowitz

Last Update: 2015-01-28
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 Watch

  • Bruce Berkowitz's Heaviest Weighted Stocks and Why He Continues to Hold On

    “You look wrong until people agree with you,” Fairholme Capital Management’s Bruce Berkowitz (Trades, Portfolio) has said about being a value investor. When interviewed, one cannot help but to ask him: why are you so attracted to financials? 73.6% of his portfolio is in the financial services sector.


    Berkowitz explained he is most attracted to the investment process and also feels more comfortable with the financial sector because it is within his circle of competence.

      


  • 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.


      


  • 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.


    Here's a look at the top three oil companies in the industry – BP PLC (BP), Exxon Mobil Corporation (XOM) and Chevron Corp (CVX) – and which stock is a safer buy based on dividend data.

      


  • 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.


    Since 2005, our readers have been helping us make our annual determination of the Investment Guru of the Year. The selection process involves two steps. In the first step, we ask users to nominate their choices. When the initial choices have been submitted, GuruFocus whittles the list to the top five or six. Those nominees will be put into a poll, and GuruFocus users will be able to vote for their Investment Guru of the Year. The Guru who gets the most votes will be named Investment Guru of the Year.

      


  • 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.

    As of the close of the third quarter Berkowitz held on to 24 stocks valued at over $7.2 billion. The guru added three new positions to his holdings: NYCB, BP and CHK – demonstrating a busy quarter for the relatively quiet guru. The following three stocks are his three largest holdings and where Berkowitz holds nearly 77% of his total assets managed.  


  • 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.


    Berkowitz still has the majority of his fund invested in American International Group (AIG) and Bank of America (BAC). 

      


  • Guru Stocks at 52-Week Lows: IBM, BBL, SAN, ABEV, RIO

    According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows.


    International Business Machines Corp (IBM) reached the 52-week low of $164.16

      


  • 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.


    The new stake reported November 6 in a 13G filing reflects a new position of 11,855,328 shares, worth ~11% of the company.

      


  • 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.


    It was a company that changed the world but seemed in trouble because of the death of the founder and the lack of a major innovation since then.

    I think you have already figured out the company name ... Apple (AAPL).

    In March 2013 I bought a bunch of shares of AAPL at ~440-450 $ / share ( ~64 $ / share split adjusted). The risk: I'm not a technology expert, and I know how fast technology can mutate. A technology company going out of favor could go from greatness to quite bankrupt (Nokia, BlackBerry docet)

    So ... was Apple the new BlackBerry?

    My view

    I'm not a technology expert, but I'm a curious guy who looks around trying to figure out what works and what doesn't. I found that Apple was different from any other PC/smartphone company. I found that Apple customers were and are different from other PC/smartphone company customers.

    The difference

    Looking around and talking with many Apple customers, I've found that Apple was more than a technology company. For the core of Apple customers, Apple is a strongly branded "lifestyle" status company .

    The core Apple customers are not going to buy a smartphone, are directly going to buy an iPhone; are not going to buy a PC, but a Mac. To me, in this sense, it looks quite similar to Ferrari, Rolex and Hermes.

    The core of Ferrari customers are simply going to buy a Ferrari , not a car , as the core of Hermes costumer are simply going to buy a birkin.

    With that personal strategic confidence and safety in mind, I have started to look at the financial side.

    Financial: cash is king

      


  • 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..


      


  • 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.


    So I'm a young and small private investor from italy. I am not a professional. I invest only my money. I am a big fan of Warren Buffett, Charlie Munger, Bruce Berkowitz, Philip Fisher and a few other succesful long-term investors. I am trying to improving my knowledge and my investment performance by "standing on the shoulders of the giants."

      


  • 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.Transocean oil rig.


    Contrarian mutual fund manager Bruce Berkowitz (Trades, Portfolio) at Fairholme Capital Management bought Transocean in the second quarter, according to GuruFocus. So did two hedge fund giants: First Eagle Investment Management’s Jean-Marie Eveillard (Trades, Portfolio) and Dreman Value Management’s David Dreman (Trades, Portfolio). Carl Icahn owns 21.5 million shares with them accounting for about 3% of his portfolio. Transocean is one of his top 10 investment picks for 2014.

      


  • 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.


    Last week, Sears denied it was planning to close more than 100 – 116, actually – Sears and Kmart stores, leading to the layoffs of more than 6,000 employees. An email from a Sears spokesman to the Associated Press disputed the number of stores and which ones would be closed but otherwise refused to comment on shutdown plans.

      


  • 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.


    Long-term drivers

      


  • Top Fund Managers See Massive Quote Losses In Their Stakes In Frannie and Freddie

    Fairholme Fund's (Trades, Portfolio) and Perry Capital's cases were the most prominent and closely watched against the government over taking a 100% of Frannie (FNMA) and Freddie (FMCC) profits. They have lost their legal challenge to a change that the government made after the 2008 bailouts of Fannie and Freddie to send all of the firm's profits to the Treasury. Currently the government faces about 20 federal legal challenges brought by investors that have kept investors from participating in Fannie and Freddie's post-bailout profits. After a federal judge in the U.S. District Court for the District of Columbia dismissed Fairholme Fund's (Trades, Portfolio) and Perry Capital cases share for Fannie and Freddia including preferred shares fell between 30% to 50% on Wednesday, October 1, 2014.


    Judge dismisses top fund managers' cases

      


  • 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.


    Fairholme Capital Management, L.L.C. also has advised Holdings that it expects that certain of its clients will participate in the rights offering at levels to be determined, subject to review of the terms and conditions of the rights offering and regulatory considerations.

      


  • 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.  


  • 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.


    But it hasn't been a smooth ride. Berkowitz is a concentrated investor (to say the least) and that brings volality.

      


  • 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).


    Berkowitz reiterated his faith in the investments in his second quarter letter, calling them maybe “the most important financial institutions in the United States – perhaps the world.”

      


  • 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 stock purchase agreement violates the Housing and Economic Recovery Act. A favorable ruling would lead to profits flowing to shareholders of preferred and common stocks held by these funds.


    Wall Street seems to believe a favorable rule for one lawsuit applies to another, but they don't. These cases have made Fannie and Freddie stocks and preferred shares trading on the over-the-counter market far more volatile as of late. Investing in Fannie and Freddie is a speculation that, if the investment funds win, the shares for these two companies will easily go up at least 10x, making Fannie and Freddie a Peter Lynch 10 bagger.

      


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