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Bruce Berkowitz's Top Second Quarter Holdings
Posted by: Monica Wolfe (IP Logged)
Date: August 15, 2013 04:09PM

Bruce Berkowitz’s second quarter Fairholme Capital Management portfolio was released yesterday and noted two new stocks to his holdings: Lincoln National Corp (LNC) and Hartford Financial Services (HIG).

The guru’s second quarter portfolio holds 19 stocks valued at approximately $7.691 billion. You can view Berkowitz’s second quarter stock buys and sells here.


[size=13px; ]The following companies represent Berkowitz’s top five stock holdings.[/size]

American International Group (AIG)
Berkowitz’s largest position is in American International Group where he holds slightly over half of his total portfolio. The guru currently owns 86,148,865 shares of AIG, representing 5.84% of the company’s shares outstanding and 50.1% of his total portfolio.

During the second quarter Berkowitz made a slight increase to his holdings. The guru increased his position 0.29% by purchasing 248,788 shares of the company’s stock. He bought these shares at an estimated average second quarter price of $42.90. The share price has increased 10.5% since then.

Berkowitz’s holding history as of the second quarter:



AIG is a holding company which, through its subsidiaries, is engaged in a range of insurance and insurance-related activities in the U.S. and abroad. The company's four reportable segments are as follows: General Insurance, Domestic Life Insurance & Retirement Services, Foreign Life Insurance & Retirement Services and Financial Services.

AIG’s historical revenue and net income:



The Peter Lynch Chart shows that AIG currently appears to be overvalued:



AIG has a market cap of $69.76 billion. Its shares are currently trading at around $47.25 with a P/E ratio of 10.30, a P/S ratio of 1.10 and a P/B ratio of 0.70.

Bank of America (BAC)

Berkowitz’s second largest holding is in Bank of America where he holds a total of 100,948,615 shares, representing 0.93% of the company’s shares outstanding and 16.9% of his total portfolio.

During the second quarter the guru made a minor increase on his holdings in Bank of America. The guru upped his holdings by 0.36% by purchasing a total of 359,400 shares. He bought these shares in the quarterly price range of $11.44 to $13.83, with an estimated average price of $12.75. The price per share has increased 12.9% since then.

Berkowitz’s holding history as of the second quarter:



Bank of America Corporation, through its banking and various non-banking subsidiaries throughout the United States and in selected international markets provides a diversified range of banking and non-banking financial services and products.

Bank of America’s historical revenue and earnings growth:



The Peter Lynch Chart suggests that the company is currently overvalued:



Bank of America has a market cap of $154.49 billion. Its shares are currently trading at around $14.38 with a P/E ratio of 31.20, a P/S ratio of 1.80 and a P/B ratio of 0.70.

Sears Holdings (SHLD)

Berkowitz holds 11.2% of his total portfolio in Sears Holdings making it his third largest position. The guru currently owns 20,392,973 shares of Sears, representing 19.17% of the company’s shares outstanding.

Over the duration of the second quarter the guru increased his position in Sears by 4.53%. The guru purchased 884,200 shares in the price range of $42.01 to $59.79, with an estimated average price of $49.89. The price has since then dropped approximately 17.1%.

Berkowitz’s holding history as of the second quarter:



Sears Holdings is an integrated retailer that maintains full-line and specialty retail stores in the U.S. and Canada.

Sears’ historical revenue and earnings growth:



Sears Holdings has a market cap of $4.4 billion. Its shares are currently trading at around $41.36 with a P/S ratio of 0.10 and a P/B ratio of 1.80.

St. Joe Corporation (JOE)

Bruce Berkowitz’s fourth largest holding is in St. Joe Corporation where he holds 6.8% of his total portfolio. As of the second quarter, the guru owned 25,017,933 shares of St. Joe, representing 27.10% of the company’s shares outstanding.

During the second quarter, Berkowitz made a very small reduction in his position in St. Joe. The guru decreased his holdings 0.07% by selling 17,922 shares. He sold these shares in the second quarter price range of $18.98 to $21.41.

Berkowitz’s holding history as of the second quarter:



St. Joe is engaged in town and resort development, commercial and industrial development and land sales. It also has interests in timber. The Company's four operating segments are: Towns & Resorts, Commercial Real Estate, Land Sales and Forestry.

St. Joe’s historical revenue and net income:



St. Joe has a market cap of $1.85 billion. Its shares are currently trading at around $20.08 with a P/E ratio of 269.10, a P/S ratio of 13.30 and a P/B ratio of 3.50.

Leucadia National Corporation (LUK)

Berkowitz’s fifth largest position goes to Leucadia National Corporation where the guru holds 6.4% of his total portfolio. Berkowitz owns 18,664,999 shares of Leucadia, representing 7.63% of the company’s shares outstanding.

During the second quarter Berkowitz reduced his position in Leucadia 0.56% by selling 105,479 shares. The guru sold these shares in the second quarter price range of $24.93 to $32.20.

Berkowitz’s holding history as of the second quarter:



Leucadia is a diversified holding company engaged through its consolidated subsidiaries in a variety of businesses, including beef processing, manufacturing, land based contract oil and gas drilling, gaming entertainment, real estate activities, medical product development and winery operations.

Leucadia’s historical revenue and earnings growth:



The Peter Lynch Chart shows that Leucadia currently appears to be undervalued:



Leucadia National has a market cap of $9.66 billion. Its shares are currently trading at around $26.52 with a P/E ratio of 8.20, a P/S ratio of 0.80 and a P/B ratio of 0.70.

Check out Bruce Berkowitz’s second quarter portfolio here.

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Guru Discussed: Bruce Berkowitz: Current Portfolio, Stock Picks
Stocks Discussed: AIG, BAC, SHLD, JOE, LUK, LNC, HIG,
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