GuruFocus has been digging into Bruce Berkowitz’s 2009 Annual Report to Fairholme Fund’s shareholdersand found the exact costs that Bruce Berkowitz paid for some of his stock.

As a mutual fund, Fairholme only need to report to its shareholders twice a year the exact holdings (number of shares and value at the end of the period) in the fund. It needs to report the exact portfolio (again, number of shares and value at the end of the period) to SEC each quarter. Either way, mutual fund managers do not need to tell the shareholder or SEC or anybody else how much exactly they paid for the stocks in the portfolio.

Situation changes completely when the fund owns more than 5% percent of the shares outstanding of a stock. At the threshold of 5%, a stock became that of an affiliated company, per Investment Company of 1940. Mutual fund needs to disclose the securities held (equity and debt) and the COSTs of the affiliated companies.

Now that success has fed Berkowitz with more than $12 billion of asset under management, and he tends to concentrate on a few good ideas rather than diversifying among many mediocre stocks, he routinely owns more than 5% of a stocks.

Among them, all the domestically traded stocks are listed in this table:

					As of 11/30/2008				2009 Gross Additions
	Symbol	Company	Price		Shares	Cost	Price		Shares	Cost	Price
1	ACF	AmeriCredit Corp.	$23.38		16,692,000	$199,228,670	$11.94		15,122,670	$86,437,475	$5.72
2	FRX	Forest Laboratories	$32.07		16,556,100	$546,918,488	$33.03		100,000	$2,127,110	$21.27
3	HTZ	Hertz Global Holdings, Inc.	$9.78		18,630,100	$127,456,844	$6.84		30,863,400	$182,452,500	$5.91
4	HUM	Humana, Inc.	$49.02		7,563,500	$249,984,758	$33.05		7,557,900	$253,283,113	$33.51
5	RRR	RSC Holdings	$7.89						7,598,800	$52,914,631	$6.96
6	SHLD	Sears Holdings Corp.	$108.85		11,239,671	$1,056,090,389	$93.96		2,979,300	$151,359,650	$50.80
7	JOE	The St. Joe Co.	$31.28		9,654,700	$310,621,238	$32.17		13,829,302	$304,577,663	$22.02
8	URI	United Rentals, Inc.	$8.39		8,291,818	$144,230,328	$17.39
9	WCG	Wellcare Health Plans, Inc.	$31.23		4,145,200	$146,541,372	$35.35		73,000	$965,183	$13.22
10	FUR	Winthrop Realty Trust	$12.96						2,988,648	$27,048,650	$9.05

Observations:

1. Berkowitz was able to take advantage of the low prices offered by the market’s dramatic decline. The current prices for most the stocks on the list are higher than much higher than the 2009 acquisition price. His double-down strategy worked handsomely.

2. Several stocks still sell at prices paid by Berkowitz paid prior to 2008 year end: FRX, JOE, URI, WCG. With the markets at 18 months high, these stock may warrants a deeper look. Two of the stocks are in Health Care sector (FRX and WCG).

Holding History:

GuruFocus has holding history data for these stocks:

AmeriCredit Corp. (ACF)

AmeriCredit Corp. is a independent automobile finance company that provides financing solutions indirectly through auto dealers and directly to consumers in the United States and Canada. Americredit Corp. has a market cap of $3.13 billion; its shares were traded at around $23.38 with a P/E ratio of 28.2 and P/S ratio of 1.5.

Berkowitz’s holding history with ACF:

QuarterEnd Date	Value ($1000)	Shares	QuarterEnd Price
20091231	673,047	35,349,099	$ 19.04
20090930	510,133	32,307,322	$ 15.79
20090630	437,764	32,307,322	$ 13.55
20090331	189,321	32,307,322	$ 5.86
20081231	246,828	32,307,322	$ 7.64
20080930	213,228	21,049,200	$ 10.13
20080630	129,262	14,995,600	$ 8.62
20080331	130,662	12,975,400	$ 10.07

Forest Laboratories Inc. (FRX)

Forest Laboratories, Inc. and its subsidiaries develop, manufacture and sell both branded and generic forms of ethical drug products which require a physician's prescription, as well as non-prescription pharmaceuticalproducts sold over-the-counter. Forest Laboratories Inc. has a market cap of $9.7 billion; its shares were traded at around $32.07 with a P/E ratio of 9.3 and P/S ratio of 2.4. Forest Laboratories Inc. had an annual average earning growth of 20.9% over the past 10 years. GuruFocus rated Forest Laboratories Inc. the business predictability rank of 2-star.

Berkowitz’s holding history with FRX

QuarterEnd Date	Value ($1000)	Shares	QuarterEnd Price
20091231	440,951	13,732,500	$ 32.11
20090930	439,110	14,915,414	$ 29.44
20090630	455,677	18,147,244	$ 25.11
20090331	440,680	20,067,400	$ 21.96
20081231	520,538	20,437,332	$ 25.47
20080930	511,701	18,094,100	$ 28.28
20080630	426,260	12,270,000	$ 34.74

Hertz Global Holdings Inc. (HTZ)

HERTZ GLOBAL HOLDING is the worlds largest general use car rental brand, operating from approximately 8,100 locations in 147 countries worldwide. Hertz Global Holdings Inc. has a market cap of $4.01 billion; its shares were traded at around $9.78 with a P/E ratio of 46.6 and P/S ratio of 0.5.

Berkowitz’s holding history with HTZ

QuarterEnd Date	Value ($1000)	Shares	QuarterEnd Price
20091231	704,936	59,138,966	$ 11.92
20090930	634,969	58,630,603	$ 10.83
20090630	469,951	58,817,361	$ 7.99
20090331	167,961	42,738,138	$ 3.93
20081231	173,398	34,200,829	$ 5.07
20080930	93,569	12,360,500	$ 7.57

Humana Inc. (HUM)

Humana, Inc. is a health services company that facilitates the delivery of health care services through networks of providers to its medical members. Humana Inc. has a market cap of $8.34 billion; its shares were traded at around $49.02 with a P/E ratio of 8 and P/S ratio of 0.3. Humana Inc. had an annual average earning growth of 23.5% over the past 10 years. GuruFocus rated Humana Inc. the business predictability rank of 3-star.

Berkowitz’s holding history with HUM

QuarterEnd Date	Value ($1000)	Shares	QuarterEnd Price
20091231	696,956	15,879,600	$ 43.89
20090930	558,105	14,962,600	$ 37.3
20090630	307,677	9,537,400	$ 32.26
20090331	176,238	6,757,600	$ 26.08
20081231	304,786	8,175,600	$ 37.28

RSC Holdings Inc. (RRR)

RSC HOLDINGS is one of the largest equipment rental providers in North America. Rsc Holdings Inc. has a market cap of $815.9 million; its shares were traded at around $7.89 with and P/S ratio of 0.6.

Berkowitz’s holding history with RRR

QuarterEnd Date	Value ($1000)	Shares	QuarterEnd Price
20091231	76,128	10,813,600	$ 7.04
20090930	44,435	6,112,100	$ 7.27
20090630	19,334	2,877,100	$ 6.72

Sears Holdings Corp. (SHLD)

Sears Holdings Corporation, the parent of Kmart and Sears, Roebuck and Co. Sears Holdings Corp. has a market cap of $12.58 billion; its shares were traded at around $108.85 with a P/E ratio of 31.6 and P/S ratio of 0.3. Sears Holdings Corp. had an annual average earning growth of 12.1% over the past 10 years.

Berkowitz’s holding history with SHLD

QuarterEnd Date	Value ($1000)	Shares	QuarterEnd Price
20091231	1,247,714	14,951,639	$ 83.45
20090930	997,743	15,277,039	$ 65.31
20090630	903,105	13,576,439	$ 66.52
20090331	655,433	14,338,939	$ 45.71
20081231	497,526	12,799,740	$ 38.87
20080930	1,364,791	14,596,690	$ 93.5
20080630	911,085	12,368,790	$ 73.66
20080331	918,768	8,999,590	$ 102.09
20071231	630,304	6,176,419	$ 102.05
20070930	367,925	2,892,489	$ 127.2
20070630	167,396	987,589	$ 169.5
20070331	178,284	989,589	$ 180.16
20061231	166,397	990,871	$ 167.93
20060930	156,046	987,071	$ 158.09
20060630	154,201	995,871	$ 154.84
20060331	142,465	1,080,671	$ 131.83
20051231	83,109	719,371	$ 115.53
20050930	18,664	150,000	$ 124.43

The St. Joe Company (JOE)

St. Joe Company is one of the Southeast's largest real estate operating companies. The St. Joe Company has a market cap of $2.9 billion; its shares were traded at around $31.28 with and P/S ratio of 20.9.

Berkowitz’s holding history with JOE

QuarterEnd Date	Value ($1000)	Shares	QuarterEnd Price
20091231	775,219	26,833,468	$ 28.89
20090930	745,814	25,611,755	$ 29.12
20090630	655,668	24,751,543	$ 26.49
20090331	308,959	18,456,326	$ 16.74
20081231	273,421	11,242,676	$ 24.32
20080930	430,494	11,012,900	$ 39.09
20080630	325,776	9,492,300	$ 34.32
20080331	552,801	12,876,800	$ 42.93
20071231	127,985	3,604,200	$ 35.51

United Rentals Inc. (URI)

United Rentals, Inc. is one of North America's largest equipment rental companies with over branches in the majority of states, several Canadian provinces and Mexico. United Rentals Inc. has a market cap of $504.8 million; its shares were traded at around $8.39 with and P/S ratio of 0.2. GuruFocus rated United Rentals Inc. the business predictability rank of 2-star.

Berkowitz’s holding history with URI

QuarterEnd Date	Value ($1000)	Shares	QuarterEnd Price
20091231	44,801	4,566,862	$ 9.81
20090930	75,432	7,323,525	$ 10.3
20090630	65,327	10,065,761	$ 6.49
20090331	43,111	10,240,205	$ 4.21
20081231	96,711	10,604,310	$ 9.12
20080930	131,837	8,650,727	$ 15.24
20080630	190,109	9,694,500	$ 19.61
20080331	84,682	4,494,800	$ 18.84

WellCare Health Plans Inc. (WCG)

WellCare Health Plans, Inc. provides managed care services targeted exclusively to government-sponsored healthcare programs, focusing on Medicaid and Medicare. Wellcare Health Plans Inc. has a market cap of $1.32 billion; its shares were traded at around $31.23 with a P/E ratio of 12.7 and P/S ratio of 0.2.

Berkowitz’s holding history with WCG

QuarterEnd Date	Value ($1000)	Shares	QuarterEnd Price
20091231	289,772	7,882,809	$ 36.76
20090930	206,751	8,387,474	$ 24.65
20090630	155,312	8,399,763	$ 18.49
20090331	91,512	8,134,413	$ 11.25
20081231	106,910	8,313,407	$ 12.86
20080930	299,711	8,325,300	$ 36
20080630	297,316	8,224,500	$ 36.15
20080331	297,687	7,642,800	$ 38.95
20071231	324,445	7,650,200	$ 42.41

WINTHROP REALTY TRUST (FUR)

Winthrop Realty Trust is a Boston-based real estate investment trust. Winthrop Realty Trust has a market cap of $264.6 million; its shares were traded at around $12.96 with a P/E ratio of 7.9 and P/S ratio of 5.5. The dividend yield of Winthrop Realty Trust stocks is 5.1%.

Berkowitz’s holding history with FUR

QuarterEnd Date	Value ($1000)	Shares	QuarterEnd Price
20091231	46,673	4,297,670	$ 10.86
20090930	11,106	1,140,294	$ 9.74
20090630	10,272	1,150,234	$ 8.93
20090331	8,352	1,208,678	$ 6.91
20081231	13,601	1,254,717	$ 10.84

Conclusion

Even the invincible Bruce Berkowitz got into situations when he bought a stock and the stock started to decline. By taking advantage of the lower price offered by the market he scored big with a number of his holdings.

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