Fairholme Capital Management Managing Member Bruce Berkowitz discusses investing strategies.
Key points:
1. Fairholme Fund is about 20% cash, more than historically normal level, which has been middle teens.
2. The Obama proposal for banking industry reform does not deter Berkowitz from his current investment strategy. Berkowitz built a large position during the talks about health care reform and now he think that industry is on good footing now. He is speculating may be this is the opportunity to build a banking industry stake in the future.
3. Berkowitz thinks Warren Buffett's investment in BNI is an "OK" investment given the price. But given Berkshire's size, it is a good investment. Berkowitz added Berkshire back to his portfolio last year.
4. Berkowitz recently launched a fix income fund, which will serve as an alternative to money market funds or short duration low yielding securities.
5. Berkowitz does not think the current size of his Fairholme fund doe not hinder the performance. But it might be a problem if the size of the fund increases to about $50 billion.
Key points:
1. Fairholme Fund is about 20% cash, more than historically normal level, which has been middle teens.
2. The Obama proposal for banking industry reform does not deter Berkowitz from his current investment strategy. Berkowitz built a large position during the talks about health care reform and now he think that industry is on good footing now. He is speculating may be this is the opportunity to build a banking industry stake in the future.
3. Berkowitz thinks Warren Buffett's investment in BNI is an "OK" investment given the price. But given Berkshire's size, it is a good investment. Berkowitz added Berkshire back to his portfolio last year.
4. Berkowitz recently launched a fix income fund, which will serve as an alternative to money market funds or short duration low yielding securities.
5. Berkowitz does not think the current size of his Fairholme fund doe not hinder the performance. But it might be a problem if the size of the fund increases to about $50 billion.
