Unless you sell stock short, you would agree with me that the lower the stock price you pay for a stock, the better. The recent stock market correction should be a welcome event for long term investors. In case you do not know what just happened in the past two months, the recent market correction marks one of the fastest declines in history in terms of speed, symbolized by the “Flash Crash” on May 6. But even the fastest decline will eventually run out of steam, brave investors will pick up chips on the cheap, and the market will start to move up again. If the market is sufficiently low, even the doomsayers come around and call the market bottom.
Short of the market extremes such as March 2009, normally you will always hear opinions from both bears and bulls; for every seller, there is a buyer, and vice versa. Last week, fund manager John Hussman stated that the US economy is going into the second leg of recession; and then this morning we saw another fund manager Jame Altucher wrote an piece entitled “Seven Reasons the S&P 500 Is Going to 1500”. Altucher’s point is, stock market is cheap and even that, you do not have to buy the whole market. He mentioned a number of blue chips names and you are better served to read his WSJ article.
James Altucher was interviewed by Yahoo! Finance today to discuss his bullish position:
At GuruFocus, we observe a large number of stocks that owned by some of the most renowned stock pickers (“Gurus”) are at or near their 52-week lows. One of the Gurus we track is Bruce Berkowitz, head of Fairholme Capital Manager. Berkowitz was name The Fund Manager of the Decade by Morningstar at the end of 2009. His Fairholme Fund returned about 13% during the past decade. It looks like his record of beating the S&P 500 will continue this year: YTD, his fund declined a mere 0.6% while S&P 500 declined 7.8% (see chart)
This is the list of stocks in the Bruce Berkowitz’s portfolio that are at or near their 52-week lows:
The St. Joe Company (JOE, Financial)
St. Joe Company is one of the Southeast's largest real estate operating companies. The St. Joe Company has a market cap of $2.13 billion; its shares were traded at around $23 with and P/S ratio of 15.4.
Read these articles that GuruFocus has on the company:
The long and short of The St. Joe Company (NYSE:JOE) - Jun, 28, 2010
Bruce Berkowitz Comments on The St. Joe Company After Oil Spill - Jun, 24, 2010
Leucadia National Corp. (LUK, Financial)
LEUCADIA NATL is a diversified financial services holding companyprincipally engaged in personal and commercial lines of property and casualty insurance, life insurance, banking and lending and manufacturing. Leucadia National Corp. has a market cap of $4.64 billion; its shares were traded at around $19.05 with a P/E ratio of 5.5 and P/S ratio of 4.1.
Sears Holdings Corp. (SHLD, Financial)
Sears Holdings Corporation, the parent of Kmart and Sears, Roebuck and Co. Sears Holdings Corp. has a market cap of $6.91 billion; its shares were traded at around $60.14 with a P/E ratio of 18.7 and P/S ratio of 0.2. Sears Holdings Corp. had an annual average earning growth of 13.6% over the past 5 years.
Of course, just because a stock is at 52-Week low doesn’t mean it worth investing. Knowing that a renowned investor like Berkowitz owns it just added to weight to its investment worthiness. Investors still needs to do their own due-diligence to assess each individual name.
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett and Bruce Berkowitz for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
Short of the market extremes such as March 2009, normally you will always hear opinions from both bears and bulls; for every seller, there is a buyer, and vice versa. Last week, fund manager John Hussman stated that the US economy is going into the second leg of recession; and then this morning we saw another fund manager Jame Altucher wrote an piece entitled “Seven Reasons the S&P 500 Is Going to 1500”. Altucher’s point is, stock market is cheap and even that, you do not have to buy the whole market. He mentioned a number of blue chips names and you are better served to read his WSJ article.
James Altucher was interviewed by Yahoo! Finance today to discuss his bullish position:
At GuruFocus, we observe a large number of stocks that owned by some of the most renowned stock pickers (“Gurus”) are at or near their 52-week lows. One of the Gurus we track is Bruce Berkowitz, head of Fairholme Capital Manager. Berkowitz was name The Fund Manager of the Decade by Morningstar at the end of 2009. His Fairholme Fund returned about 13% during the past decade. It looks like his record of beating the S&P 500 will continue this year: YTD, his fund declined a mere 0.6% while S&P 500 declined 7.8% (see chart)
This is the list of stocks in the Bruce Berkowitz’s portfolio that are at or near their 52-week lows:
| Ticker | Company | % Above 52W Low | Shares | % Weighting as of 2010-03-31 |
|---|---|---|---|---|
| JOE | The St. Joe Company | 4.0 | 26,799,155 | 8.26% |
| LUK | Leucadia National Corp. | 4.2 | 20,302,189 | 4.8% |
| SHLD | Sears Holdings Corp. | 4.6 | 14,714,071 | 15.2% |
The St. Joe Company (JOE, Financial)
St. Joe Company is one of the Southeast's largest real estate operating companies. The St. Joe Company has a market cap of $2.13 billion; its shares were traded at around $23 with and P/S ratio of 15.4.
Read these articles that GuruFocus has on the company:
The long and short of The St. Joe Company (NYSE:JOE) - Jun, 28, 2010
Bruce Berkowitz Comments on The St. Joe Company After Oil Spill - Jun, 24, 2010
Leucadia National Corp. (LUK, Financial)
LEUCADIA NATL is a diversified financial services holding companyprincipally engaged in personal and commercial lines of property and casualty insurance, life insurance, banking and lending and manufacturing. Leucadia National Corp. has a market cap of $4.64 billion; its shares were traded at around $19.05 with a P/E ratio of 5.5 and P/S ratio of 4.1.
Sears Holdings Corp. (SHLD, Financial)
Sears Holdings Corporation, the parent of Kmart and Sears, Roebuck and Co. Sears Holdings Corp. has a market cap of $6.91 billion; its shares were traded at around $60.14 with a P/E ratio of 18.7 and P/S ratio of 0.2. Sears Holdings Corp. had an annual average earning growth of 13.6% over the past 5 years.
Of course, just because a stock is at 52-Week low doesn’t mean it worth investing. Knowing that a renowned investor like Berkowitz owns it just added to weight to its investment worthiness. Investors still needs to do their own due-diligence to assess each individual name.
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett and Bruce Berkowitz for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
